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HomeMy WebLinkAboutDIVISION_3 ___TAX_ABATEMENT DRAFT revisions_10 01 2015 edits Draft finalized by C.Kramer, 10.01.2015 1 DIVISION 3. - TAX ABATEMENT Sec. 2.06.350. - Intent. The intent and purpose of the tax abatement certificate of appropriateness is to encourage the appropriate rehabilitation, restoration, and preservation of historic properties which otherwise would not have been so carefully preserved. It is recognized that a grant of tax abatement is a discretionary act by the city commission. (Ord. No. 1744, § 1(3.30.010), 10-6-2008) Sec. 2.06.360. - Authority. A. Pursuant to MCA 15-24-1601 through 15-24-1608, the city commission by this division approves the tax benefits as set forth in said statutes for those improvements made by restoration, rehabilitation, or expansion of certified historic commercial or residential properties or qualifying new construction within an historic district which meets the design criteria during the construction period, not to exceed 12 months, and for up to five years following completion of the construction, in those situations where such improvements preserve certified historic commercial or residential properties, or encourage appropriate new construction meeting the design criteria to be architecturally compatible within the historic districts. B. The tax abatement is limited to 100 percent of the increase in taxable value caused by the rehabilitation, restoration, expansion or new construction and applies to only those properties which do not receive any other tax exemption or special evaluation provided by state law during the period of abatement. (Ord. No. 1744, § 1(3.30.020), 10-6-2008) Sec. 2.06.370. - Definitions. A. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: 1. "Construction period" as used herein shall mean a period of time from the date of issuance of the required building permit until the project is substantially completed or a period of 12 months from the date of issuance of said building permit, whichever period is shorter. 2. "Qualifying new construction" as used herein shall mean construction which satisfies the requirements of section 2.06.390.A.3. (Ord. No. 1744, § 1(3.30.030), 10-6-2008) Sec. 2.06.380. - Procedures. A. The owner of the property must comply with the provisions and standards of this section and section 2.06.390, and chapter 38, article XVI, in order to be considered for tax abatement. Failure to demonstrate successful compliance with the requirements disqualifies a property from being awarded tax abatement, but does not prohibit development with a certificate of appropriateness otherwise approved under chapter 38, article XVI: Draft finalized by C.Kramer, 10.01.2015 2 1. The owner of the property is solely responsible for supplying to the Bozeman Historic Preservation Advisory Commission and the city commission all information and documents necessary to evaluate the project. If sufficient information and documentation is not supplied by the owner for consideration to make an informed decision, the application will be denied. 2. The city commission hereby designates the Bozeman Historic Preservation Advisory Board as its local review board and hereby directs said board to establish an application and review process to certify eligible properties as specified in MCA 15-24-1604 and which must include, but is not limited to, the design review criteria based on the Secretary of Interior's Standards for Rehabilitation of Historic Properties or other standards approved by the State Historic Preservation Office. The established review process shall be integrated with the certificate of appropriateness review authorized in chapter 38, article XVI. 3. The historic preservation advisory board shall recommend approval or denial of any application for the tax abatement and report its recommendation to the city commission which shall then either approve or deny said recommendation by resolution. 4. All taxes, assessments and Special Improvement District obligations on any property proposed for tax abatement must be current before any tax abatement will be considered. 5. Following certification, and during the period of tax abatement, if the property is altered in any way that adversely affects those elements that qualify it as historically contributing, the property shall be disqualified from receiving the tax abatement. If the historic property which has received a tax abatement under this part is disqualified, the owner is liable for back taxes, interest and a penalty. These costs must be extended against the property in the next general real property tax roll, to be collected and distributed in the same manner as the currently assessed real property tax. The back taxes, interest and penalty must equal the sum of the following: a. The difference in the total real property taxes due during the years the tax abatement was in effect and the total of real property taxes which would have been due had the special assessments not been in effect for those years; b. Interest on the amount calculated in section 2.06.380.A.5.a at the rate for delinquent property taxes provided for in MCA 15-16-102; plus c. A penalty of 15 percent on the sum of section 2.06.380.A.5.a. Back taxes, interest or penalty may not be imposed on a property transferred to an ownership that makes the property exempt from property taxation or if the property is destroyed by fire or force majeure. (Ord. No. 1744, § 1(3.30.040), 10-6-2008) Sec. 2.06.390. - Standards. A. To be approved as a tax abatement COA the following requirements shall be met: 1. The property must meet one or more of the following criteria: a. The property is individually listed on the National Register of Historic Places (NRHP). b. The property is at least 50 years of age and located in an established NRHP historic district. c. The property is determined by a qualified professional to be eligible for individual listing in the NRHP. If this criterion is selected, the applicant must complete the necessary steps to nominate the property on the NRHP prior to filing an application for tax abatement. Final approval of the tax abatement will be issued upon listing of the property on the National Register of Historic Preservation. Draft finalized by C.Kramer, 10.01.2015 3 2. Alterations to the properties or structures without city approval nullifies the tax abatement qualification. 3. All standard COA requirements per chapter 38, and the Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties as stipulated in article XVI, or its successors shall appy. (Ord. No. 1744, § 1(3.30.050), 10-6-2008) Secs. 2.06.400—2.06.550. - Reserved.