The deadline to take advantage of 2010 property tax exemptions on unoccupied homes is around the corner. It is imperative and financially rewarding for every builder who is qualified for the exemption to meet the specified deadline – January 31. Failure to meet this deadline will result in a loss of the property tax exemption for the 2010 tax year!

The General Assembly passed legislation in 2009 to give builders/developers an exemption on property tax for newly constructed and yet unoccupied detached single family homes that received their certificate of occupancy (CO) after 2006. Effective in July 1, 2009 a newly constructed home that remains unoccupied will not have the improvement (home) taxed until it is occupied, or the home reaches the sixth December 31 renewal date after receiving its Certificate of Occupancy (CO).

Information on how to secure and maintain the property tax exemption is detailed below.

Obtaining & Maintaining Exemption:
A. Homes Receiving CO in 2007- 2008 – Builder should have file exemption form with county assessor by September 30, 2009 for the 2009 tax year exemption. If this was not done, the tax exemption form should be filed by January 31, 2010. For those who got their tax exemption in on time in 2009, you must recertify each year beginning on January 31, 2010 that the house remains unoccupied to maintain the tax exemption.

B. Homes Receiving CO in 2009 forward – If builder gets a CO, he has to notify assessor within 30 days of receiving a CO, or by January 31, 2010 that the house is unoccupied. Going forward, if house sale is not pending, it would seem prudent to file exemption form when CO issued just to be safe.

C. The County Assessors have developed a form to claim the tax exemption and annual extension. However, the form may vary slightly from county to county. To protect your legal rights the application should be notarized.

The Home Builders Association had to work very hard to secure this valuable property tax exemption during the current downturn. For many builders the exemption can make a big difference in surviving the current downturn in the home building industry.