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Winter Storm, Busted Pipes & the Temporary Disaster Exemption

 

The Temporary Disaster Exemption Law is a brand new law that may drastically reduce your 2021 property tax bill. If your commercial, residential or business personal property was physically damaged from the snow storm by busted pipes, falling limbs, or otherwise, you may qualify for a property tax exemption.

Do I qualify? If your property suffered either structural or non-structural damage from the freeze, we believe you qualify even if it was only minor damage and even if you continued to use the property as intended. Busted pipes within the structure we believe will qualify. Busted sprinkler systems or pool pumps on their own we do not believe will qualify.

Exemption Savings: At the very minimum if you qualify for the 2021 winter storm, it will reduce the property taxes you will owe on the improvements by 13.275%. Basically, the new law categorizes damage into 4 damage levels (15%, 30%, 60% and 100%). If you qualify, your exemption is calculated by Exemption Level % x (Days in the year after Disaster declared/Days in the Year). If you have a 1,000,000 improvement assigned a Level 1 rating (minor damages), your exemption is calculated as: $150,000 x (323/365) x Tax Rate. Assuming a 2.5% tax rate, the exemption saves you $3,318 in taxes for 2021!

What you need to do now: Let us know you believe your property may qualify. Gather up all documents, inspections, photos, repair estimates or other info to assist in estimating the property’s damage.

Deadline to Apply: May 28, 2021 (105 days after the Governor declared a Disaster Area which was February 12)

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