Nonresidential real property that is converted to
the structure used for both residential and commercial purposes is
eligible for partial exemption from taxation and special ad valorem
levies, provided the cost of conversion exceeds $10,000.
The amount of the exemption is calculated as a percentage
of the exemption base, which is the increase in assessed value of
the property attributable to conversion to a mixed-use property. This
base should be determined for each year in which there is an increase
in assessed value attributable to conversion from that of the previous
year's assessed value. The exemption is computed as indicated below:
The property receiving said exemption may not currently
receive any other exemption, except where during the period of any
such prior exemption, payments in lieu of taxes or other payments
were made to the local government in an amount that would have been
equal to or greater than the amount of real property taxes that would
have been paid on the improvements had the property received this
exemption.
The facility must be owned or operated by a private
or public individual or organization. The portion devoted to residential
construction work may not include dwelling units in a hotel. The cost
of conversion must be at least $10,000. Such conversion costs may
not include ordinary maintenance and repairs.
Such exemption shall be granted only upon application
by the owner of such building on a form prescribed by the State Board.
The original of such application shall be filed with the Assessor's
office on or before the taxable status date.