The purpose of this article is to provide tax relief to those
property owners who construct, reconstruct or expand structures on
their property provided said property is used primarily for hospitality
business activity.
Construction of improvements to real property for purposes of
hospitality business activity shall be exempt from taxation to the
extent provided by this article.
Such real property shall be exempt for a period of one year
to the extent of 50% of the increase in assessed value thereof attributable
to such construction, alteration, installation or improvement and
for an additional period of nine years; provided, however, that the
extent of such exemption shall be decreased by five percent each year
during such additional period of nine years and such exemption shall
be computed with respect to the exemption base. The exemption base
shall be the increase in assessed value as determined in the initial
year of such ten-year period following the filing of an original application.
The following table shall illustrate the computation of the tax exemption:
Hospitality Business Investment Tax Exemption
|
---|
Year
|
Exemption
|
---|
1
|
50%
|
2
|
45%
|
3
|
40%
|
4
|
35%
|
5
|
30%
|
6
|
25%
|
7
|
20%
|
8
|
15%
|
9
|
10%
|
10
|
5%
|