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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 2: Multiple dwellings and urban renewal

Section 4.07 - PHFL Section 211: Urban renewal property owned by urban redevelopment corporations

Exemption code(s)

4800

Year originally enacted:

1941

Related statutes:

None.

Summary:

To the extent allowed by local option, real property that is (1) located in a city,(2) owned by an urban redevelopment corporation, and (3) used for urban renewal purposes is exempt from that portion of general municipal taxes, school district taxes, and special ad valorem levies which represents an increase over the tax or levy payable on the basis of the assessment roll immediately preceding the beginning of the exemption. Such property is liable for special assessments.

Eligibility requirements

Ownership requirements:

Property must be owned by an urban redevelopment corporation. Specific organizational requirements are as follows:

  • Law under which incorporation required: Bsns Corp L Article 4.
  • Restrictions on corporate purposes or activities as stated in certificate of incorporation:
    1. Corporation must be organized to plan and carry out a development project for the clearance, rehabilitation, and reconstruction of a substandard and insanitary urban area under the supervision of the city's planning commission and its board of estimate or other appropriate official or agency,
    2. corporation may not undertake more than one development project, and
    3. while any of the corporation's real property is exempt from taxation the corporation is limited in the amount that it may pay in interest on its debentures and dividends on its stock.

Property location requirements:

Property must be located in a city.

Property use requirements:

Property must be used for urban renewal purposes - the clearance, replanning, rehabilitation, and reconstruction of a substandard and insanitary urban area.

Certification by state or local government:

None required.

Required construction start date or other time requirement:

None.

Local option

Yes. Each county and city may choose whether or not to exempt all or part of the value of the property which represents an increase over the tax or special ad valorem levy payable on the basis of the assessment roll immediately preceding the beginning of the exemption. The municipality may also determine the term of the exemption, which may not exceed 10 years. The option must be exercised through adoption of a local law or ordinance.

Limitation on exemption

Limitation on exemption by amount, duration, and taxing jurisdiction
General municipal taxes School district taxes Special ad valorem tax Special assessments
1. Amount Yes* Yes* Yes* No exemption allowed
2. Duration 10 years or less 10 years or less 10 years or less No exemption allowed
3. Taxing jurisdiction
a. County or county special districts Ex*** NA Ex** Tax
b. City Ex*** NA NA Tax
e. School district NA Ex*** NA NA
Ex-Exempt     Tax-Taxable     NA-Not Applicable

* Amount is limited to all or part of the value of the property which represents an increase over the taxes or special ad valorem levies payable on the basis of the assessment roll immediately preceding the beginning of the exemption.

** If allowed by local option.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

% of assessed value which represents an increase over the taxes payable on the basis of the assessment roll immediately preceding the beginning of the exemption.

Special ad valorem levies and special assessments:

Special ad valorem levies:

% of assessed value which represents an increase over the levies payable on the basis of the assessment roll immediately preceding the beginning of the exemption.

Special assessments:

No exemption allowed.

Coding of exemption on assessment roll

Coding of exemption on assessment roll
Code Description of alternative codes possible
4800

Assessment roll section(s):

Taxable (ARLM Section 1).

Note: This code should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.

Filing requirements (owner or occupant of property)

None.

Reporting requirements (assessor)

None.

Similar exemptions

See Chart IIA and Chart IIB

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