New Castle News
May 13, 2008 08:59 am
—
By MARYALICE MELI
mameli@ncnewsonline.com
Owners of commercial buildings may qualify for temporary reductions in assessments on 40 percent of the buildings’ vacant portions.
The Lawrence County commissioners plan to approve this temporary reduction in assessment, called the vacancy factor, at their 10 a.m. meeting Tuesday.
County assessor, J.R. Hardester, said state tax assessment law allows developers a temporary reduction in assessment on 40 percent of the vacant land they are developing until the lots sell. He said he wants to do the same for landlords of commercial buildings to help them free funds for property improvements to attract tenants.
Hardester said the commercial entities may be single buildings with multiple tenants, residential apartment buildings, strip malls or office complexes.
The agreement between the assessment office and landlords is for one year, must be renewed to continue and comes with eight terms that must be maintained for the reduction to remain in place.
Hardester said property owners must apply for a hearing by Sept. 1. The application fee is $50.
Within two weeks after the deadline, he said, hearings will be conducted before the county’s Board of Assessment Appeals for a reduction in the 2009 taxes. The calculation is based on the square footage of the vacant portion.
An appraisal of the property, no older than three years, must be submitted stating the value of the property at 100 percent occupancy. Hardester said this requirement may stop some owners from applying because appraisals can be costly.
Hardester said he does not know, at this point, how much the program will cost the county in tax collection until after the applications come in.
To qualify for a vacancy factor, Hardester said, owners must provide written documentation that their properties have been partially or totally vacant for more than one year and that they’re actively seeking tenants for the vacant portion.
Once the vacancy factor is granted, the owner must supply the assessment office with a list of tenants’ names and other information every three months.
Hardester said he or his assistant will physically inspect the properties to verify the owners’ statements and to check on improvements being made “to make sure no one abuses it.” If these terms are not being adhered to or if an inspection request is denied, he added, the property will be removed from the program.
At Thursday’s commission work session, resident John Altman said he could not see any advantage in the program for county taxpayers and called it a negative incentive. He said vacant land is assessed higher than that which is developed to encourage development.
Altman pointed to the number of vacancies in downtown New Castle buildings.
Commission chairman Steve Craig said, “Rental markets in downtown are tough.”
He said the vacancy factor, “gives landlords the ability to make renovations to better market (properties) for tenants. High taxes drive people to invest elsewhere.”
Copyright © 1999-2008 cnhi, inc.