This past year, we passed H. 3018, legislation that gives a property tax exemption to new homes that haven’t been sold yet (“spec houses”). The logic for this legislation was the thought of unoccupied property should not be taxed. A home should not taxed until it is occupied.
There was a very strict process in order for the builder/realtor to receive the exemption.
The legislation reads:
In lieu of other exemption application requirements, the owner of property eligible for the exemption allowed by this item shall obtain the exemption by notifying the county assessor and county auditor by written affidavit no later than thirty days after the certificate of occupancy is issued and no later than January thirty-first in subsequent exemption eligibility years that the property is of the type eligible for the exemption and unoccupied and if found in order, the exemption is allowed for the applicable property tax year. If the unsold residence is occupied at any time before eligibility for the exemption ends, the owner shall so notify the auditor and assessor and the exemption ends as provided in subitem (a) of this item.”
So, the builder must obtain the exemption by the county assessor and county auditor within 30 days from receiving the certificate of occupancy. If this exemption is not obtained within the 30 day window, the property taxes must be paid on the property.