Classify Residential Land Change In Improvements

Property tax - destruction, demolition, or relocation of residential improvements - residential land classification to remain in place. On or after January 1, 2018, if residential improvements are destroyed, demolished, or relocated, and, were it not for their destruction, demolition, or relocation, the improvements would have qualified the land upon which the improvements were located as residential land for the following property tax year, the act requires the residential land classification to remain in place for the year in which the improvements were destroyed, demolished, or relocated and one subsequent property tax year if the assessor determines that evidence is present that the owner intends to rebuild or locate a residential improvement on the land. For purposes of making this determination, the assessor may consider, but is not limited to considering, a building permit or other land development permit for the land, construction plans for such residential improvement, or efforts by the owner to obtain financing for a residential improvement.

The residential land classification of the land must change according to current use if:

• A new residential improvement or part of a new residential improvement is not constructed or placed on the land in accordance with applicable land use regulations before January 1 of the property tax year immediately following the 2-year period described in the act;
• The assessor determines that the classification of the land at the time of the destruction, demolition, or relocation was erroneous; or
• A change of use has occurred. For purposes of the act, a change of use does not include the temporary loss of the residential use due to the destruction, demolition, or relocation of the residential improvement.
  (Note: This summary applies to this bill as enacted.)