[Adopted 6-4-2012 by Ord. No. 5-1-12]
The purpose of this article is to provide a credit against Town of Indian Head real property taxes to the owner(s) of any renovated or rehabilitated business property located within the Town of Indian Head whose business property assessed value increases as a result of the renovation or rehabilitation of the property.
A. 
Unless a contrary intention clearly appears, words used in the present tense include the future, the singular includes the plural, the term "shall" is always mandatory, and the term "may" is permissive.
B. 
For the purpose of this article, certain terms are defined as follows:
REHABILITATION
The process of returning real property to a state of utility, through repair or alteration, which makes possible an efficient business use.
RENOVATION
The change, strengthening, or addition of load-bearing elements; or the refinishing, replacement, bracing, strengthening, upgrading, or extensive repair of existing materials, elements, components, equipment or fixtures; or all of these.
(1) 
Renovation does not include the interior reconfiguration of space or painting.
(2) 
Renovation includes the total reconstruction of a business property destroyed by wind, hail, fire or other acts of God.
A. 
The Council of the Town of Indian Head may grant a credit against Town of Indian Head real property tax to the owner(s) of any qualifying business real property in the Town of Indian Head where an increase in the assessed value of improved property has occurred as the direct result of the rehabilitation or renovation of the property.
B. 
The credit shall be a declining percentage on an annual basis and shall not exceed five years.
C. 
It shall be the sole responsibility of the property owner(s) to apply for the tax credit, on a form provided by the Town, and to provide documentation satisfactory to the Town as to the qualifications of the property for the credit.
D. 
The application for tax credit will be reviewed by the Town to determine if the property qualifies for the tax credit, and the property owner(s) will be notified of the Town's decision.
A. 
The tax credit shall be for a term of five full years of taxes based upon the rate of tax levied in year one, and shall be calculated as follows:
(1) 
One hundred percent credit in year one of the net difference in tax between the tax calculated upon the last known full-year assessed value of the improvements, as evidenced by the last official assessment notice issued prior to the renovation or rehabilitation of the improved property, and the amount of tax calculated based upon value of the new full-year assessment of the improvements, as evidenced by the new official assessment notice.
(2) 
Eighty percent credit in year two of the net difference described in § 394-7A(1).
(3) 
Sixty percent credit in year three of the net difference described in § 394-7A(1).
(4) 
Forty percent credit in year four of the net difference described in § 394-7A(1).
(5) 
Twenty percent credit in year five of the net difference described in § 394-7A(1).
B. 
Any property tax credit granted pursuant to this article shall not include any increase in taxes levied as a result of a tax rate increase by the Town of Indian Head.
The credit shall be applicable only to those properties which have completed renovation or rehabilitation on or before December 31, 2014.