(a) All new qualifying structures, or additions or renovation or reconstruction of existing qualifying structures, which have a full and true value of $300,000 or more, added to real property shall be taxed pursuant to the following formula during the five tax years subsequent to the completion of their construction:
(1) The full and true value of the structures, additions, renovation or reconstruction shall be determined in the usual manner by the director of equalization;
(2) For the first tax year following construction, no portion of the taxable value shall be used for taxation purposes;
(3) For the second tax year following construction, 20% of the taxable value shall be used for taxation purposes;
(4) For the third tax year following construction, 40% of the taxable value shall be used for taxation purposes;
(5) For the fourth tax year following construction, 60% of the taxable value shall be used for taxation purposes; and
(6) For the fifth tax year following construction, 80% of the taxable value shall be used for taxation purposes.
(b) The taxable value of the structures or additions during any of the five tax years subsequent to the completion of their construction may not be less than their taxable value in the year preceding the first year of the tax years following construction.
(c) For the sixth and all subsequent tax years following construction, the structures or additions shall be taxed in the same manner as all other similar industrial property within the city.
(d) Any structures, additions, renovation or reconstruction, the construction of which is only partially completed on any assessment date, shall be assessed for taxation purposes in the usual manner.
(e) The new construction tax incentive shall be discontinued if the business use changes to a nonqualifying use during the five-year period so that it would be ineligible under the new use.
(1992 Code, § 39-123) (Ord. 59-87, passed 7-27-1987; Ord. 85-05, passed 8-15-2005; Ord. 135-06, passed 10-16-2006)