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Application for Tax Exemption and Reduction for

the Remodeling, Reconstruction, or Expansion of

Existing Commercial Buildings or Structures

Acknowledgment of Application Procedures and Criteria

A. I acknowledge the following:

i. Failure to make application prior to completion of a building permit or prior to commencement

of construction will result in the waiver of the construction period tax exemption and reduction.

Additionally, all subsequent tax exemption and reduction, if approved, will be calculated as of the

date the building permit was completed or as of the date construction began, whichever is earlier.

ii. If the remodeling, reconstruction of expansion of the existing commercial building or structure

does not increase the taxable value of that structure or building by at least 5%, the application

will be automatically denied.

iii. “Construction period” means a period of time that commences with the issuance of a building

permit and which concludes when the local DOR office determines that the structure is substantially

completed, not to exceed 12 months. If more than one building permit is issued, the date on the

earliest building permit issued will constitute the commencement of the construction period. In

those cases where building permits are not issued, the commencement of the construction period

is that time determined by the local DOR office to be the start of construction. That determination

will coincide with the date the contract is let, the date the application is approved by the governing

body, or when site work begins, whichever occurs first. For purposes of determining the eligibility

for tax benefits, the construction period for a specific project may not exceed 12 months.

iv. The computation of the tax exemption and reduction will be dependent upon the approval of the

application by all affected governing bodies.

v. For projects which are entirely physically located outside the boundaries of incorporated cities or

towns, the governing body of the affected county has sole authority to approve the tax benefits

for the project.

vi. If the project is entirely physically located within an incorporated city or town, both the governing

body of the affected county and the governing body of the incorporated city or town must approve

the application by resolution before the tax exemption and reduction may be extended to the

project. If the city alone approves the application, the exemption and reduction will apply only to

the number of mills levied and assessed by the incorporated city or town. The number of mills

levied and assessed by the county governing body will not be affected nor will any tax exemption

and reduction be extended by the county to the project.

vii. Only additional value created after an application has been filed may be considered for tax

exemption and reduction.

viii. I do hereby consent to having a representative of the Department of Revenue reappraise and

revalue my structure for purposes of ad valorem taxation.

B. It is the responsibility of the applicant to ensure the application is delivered to all affected levels

of local government for their review. Further, it is the responsibility of the applicant to ensure the

completed application is forwarded to the Department of Revenue prior to April 1 of the tax year for

which the benefits are sought.

Form Ab-56a - Application For Tax Exemption And Reduction For The Remodeling, Reconstruction Or Expansion Of Existing Commercial Buildings Or Structures Page 2