4.45.085 Deferral for certain subdivided property.
All borough property taxes, including areawide, non-areawide, and service area taxes, derived from the increase in assessed value directly attributable to the subdivision of a single parcel of property into three or more parcels and any improvements made to the property necessitated by its subdivision may be deferred for a maximum of five years. This deferral is subject to the following conditions and restrictions:
(a) Application for deferral under this section may be made for a parcel to be subdivided upon approval of the final plat by the platting authority. A taxable base value will be assigned to each of the newly subdivided parcels on a square footage basis, and the sum of the aggregate base values will equal the assessed value of the parent parcel. Any value above the base value for each of the subdivided lots will be subject to tax deferment according to the terms of the deferral agreement. The assessment department will report the taxable base value and the tax-deferred value of each parcel included in the tax-deferred subdivision to the finance department annually upon certification of the annual tax roll.
(b) The deferral shall only apply to property subdivided pursuant to a final plat approved on or after July 1, 2020.
(c) A signed application on a form approved by the assessment director must be submitted prior to January 15 of each year a deferral is requested. The applicant must provide all relevant information and documents requested by the assessment department.
(d) The amount deferred each year is a lien on that property for that year. Lien recording costs shall be submitted with the application.
(e) The deferral shall terminate for each parcel when the parcel’s ownership is transferred, a foundation is built on the parcel, or taxes have been deferred for the maximum five-year period, whichever earlier occurs. When the deferral terminates the total deferred tax amounts shall be paid within 90 days of written notice. The finance director shall sign a notarized release of lien upon payment of the deferred amounts but shall not be responsible for recording the release.
(f) “Assessed value” for purposes of this section is the full and true value as of January 1 after recording of the final plat and before application of any other exemptions and/or deferrals.
(g) “Deferred value” for purposes of this section is the increase in assessed value, if any, which is directly attributable to the subdivision of a single parcel of property into three or more parcels and any improvements required by KGBC Title 17.
(h) “Foundation” for the purposes of this section includes the installation of any structural post, pier, stem wall, or concrete slab foundation. [Ord. No. 1904, §1, 2-3-20.]