(A) For the purposes of calculation, the property tax of the property, before reconstruction and/or improvements, will remain in effect and be called the base. This base will be established at the time a building permit is acquired for building improvements. Only the increased property tax due to reconstruction and/or improvements above the base shall be rebated. This base shall remain in effect for the five years of the tax rebate.
(B) For illustration purposes only, the city will calculate the rebate as follows:
Current property value: $20,000
City of Lead mill levy: 8.75 (for illustration purposes only)
Current property tax (base): = $20,000/1000 x 8.75 = $175
Improved property value: $120,000
Improved property tax: = $120,000/1000 x 8.75 = $1,050
Rebate: = $1,050 - $175 = $875.00
(Ord. 1057-17, passed 1-2-2018; Ord. 1073-20, passed 7-20-2020)