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Industrial Facility Exemption
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How is the tax computed for a replacement facility?
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Answer:
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The Act states that the tax computation for a replacement facility is determined by multiplying the total mills levied as ad valorem taxes by the TV of the real and/or personal property component of the obsolete industrial property for the tax year immediately preceding the effective date of the certificate.
A parcel of property holding a "Rehabilitation" Industrial Facilities Exemption Certificate will have two assessments. The land will be assessed on the regular (ad valorem) assessment roll that the assessor has turned over to the March Board of Review. The building, land improvements and personal property (pertaining to the same certificate) will have an assessment on the Industrial Facilities Tax Roll. The taxes on properties holding a "Rehabilitation" or "Replacement" certificate shall be levied against Taxable Value.
The Taxable Value of a property on the IFT roll with a "Rehabilitation" or "Replacement" certificate is the amount of the Taxable Value of the real and/or personal property for the tax year immediately preceding the effective date of the IFT exemption certificate. That amount is "frozen" until the exemption certificate expires.
The Taxable Value of a property on the IFT roll covered by a "Rehabilitation" or "Replacement" certificate which began PRIOR TO 1995 will still be the same as the "frozen" SEV for the property until the exemption certificate expires. The Taxable Value of a property covered by a "Rehabilitation" or "Replacement" certificate which BEGAN IN 1995 OR AFTER will be the same as the "frozen" TAXABLE VALUE for the property until the exemption certificate expires.
The property's land assessment on the ad valorem roll may be adjusted by the March Board of Review. The IFT Roll assessment of a property with a "Rehabilitation" certificate or "Replacement" certificate CANNOT have its assessment altered by the Board of Review during the life of the certificate.
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