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(a) "Reconstruction (of real property)" shall mean the subdividing of real property and, in addition, all construction contracting activities performed upon the real property, provided, however, that each of the following conditions are met:
(1) A structure existed on the real property prior to the reconstruction activity; and
(2) The "prior value" of the structure exceeds fifteen (15) percent of the "prior value" of the integrated property (land, improvements, and structure); and
(3) The total cost of all construction contracting activities performed on the real property in the twenty-four-month period prior to the sale of any part of the real property exceeds fifteen (15) percent of the "prior value" of the real property; and
(4) The structure which existed on the real property prior to the reconstruction activity still exists in some form upon the property, and is included, in whole or in part, in the property sold.
(b) Except as provided in subsection (c) below, "prior value" means the value of the total integrated property, with improvements, as existing immediately prior to any reconstruction activity. Where, according to A.R.S. title 42, a property's full cash value for secondary tax purposes is intended to represent the property's fair market value, "prior value" shall be the property's full cash value for secondary property tax purposes as determined by the county assessor in the year immediately preceding the year in which the reconstruction improvement(s) are or could have been included in the county assessor's valuation. If the county assessor's valuation is contested or appealed, the final determination at either the administrative or judicial level shall apply. Where, according to A.R.S. title 42, a property's full cash value for secondary property tax purposes is not intended to represent the property's fair market value, "prior value" shall be the property's fair market value prior to the reconstruction improvement(s).
(c) "Alternate prior value" shall mean that as an alternative to the "prior value" defined above, the taxpayer may use his actual cost of the reconstructed property prior to reconstruction, provided that evidence of such cost is presented to the tax collector and is determined by the tax collector, in his sole discretion, to be satisfactory. Such evidence shall consist, at a minimum, of proof of the actual, arms-length acquisition price, accompanied by a full appraisal of all property involved which appraisal shall have been performed by a real estate broker or MAI appraiser specifically for the purpose of assisting in the acquisition and further shall have been performed on behalf of the seller or a lending institution which has lent at least sixty-five (65) percent of the acquisition price. (Only long-term lending, not interim or construction financing, will be considered.) This alternative value shall be used only if the property was acquired by the reconstruction taxpayer not more than thirty-six (36) months prior to a "sale" as defined below.
(d) A "sale" for the purpose of determining "alternative prior value" or "reconstruction" only shall be deemed to have occurred as of the date of the execution of a contract of sale or a deed (joint tenancy or warranty) whichever is earlier, to a purchaser or grantee of any single residential or other occupancy unit. In addition to the foregoing, a lease with option to purchase a single residential unit shall be considered a "sale" at the date of execution of such lease if such option is exercisable by the lessee in not later than nine (9) months. Further in the case of cooperative apartments, the sale date shall be the date of execution of the contract selling (subject or not to encumbrances, liens or security interests) of a share, or a sufficient number of shares which entitle the purchaser to the occupancy of a residential unit. In all cases a person shall include a husband and wife as a community, or any co-occupants of a single unit as joint tenants.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 8440, § 26, 1-23-95; Ord. No. 8784, § 28, 12-2-96)