15-6-244. Temporary exemption for residential subdivision development -- rulemaking. (1) Subject to the provisions of this section, property that is undergoing residential subdivision development is temporarily exempt from taxation at the start of the property tax year beginning January 1 after the following conditions are met:

(a) the developer has submitted a timely property tax exemption application to the department and the department has approved the exemption application; and

(b) within 30 days after approval of the exemption application and before January 1 of the property tax year in which the exemption is sought, the developer has submitted a property tax prepayment equal to five times the amount of property taxes and assessments due on the property in the most recent property tax year. The payment is payable to the county treasurer and must be distributed by the treasurer to funds and accounts in the same ratio as property tax collected on the property is distributed.

(2) At the time the exemption is granted, the department shall provide a notice to the clerk and recorder in the county in which the property is located. The clerk shall file the notice when the payment provided for in subsection (1)(b) is made. The notice must indicate that an exemption pursuant to this section has been granted on a form prescribed by the department.

(3) The developer or an interested party shall pay the amount provided for in subsection (1)(b) plus a fee of 5% before January 1 of the property tax year in which the exemption is sought. The payment is payable to the county treasurer and must be distributed by the treasurer to funds and accounts in the same ratio as property tax collected on the property is distributed.

(4) (a) Subject to subsection (4)(b), the temporary exemption applies to all real property in the subdivision that was granted the exemption, including new construction of residential property for a period not to exceed 5 years, regardless of the number of conveyances from the land split, the value of real property and residential real property during the construction process, or a change in ownership.

(b) The exemption expires on any lot that was part of the land split at the start of the property tax year beginning on January 1 after a habitable residential structure has been constructed on the lot.

(5) If subdivision development is complete before the expiration of the period provided for in subsection (4)(a), the temporary exemption expires on December 31 of the year in which the subdivision development is complete. For the purposes of this subsection (5), subdivision development is complete when at least 95% of the lots that are part of the land split contain a habitable residential structure.

(6) The department may adopt rules to implement the provisions of this section.