42-12054. Change in classification of
owner-occupied residence


A. If a person purchases or converts property that is listed as class one,
paragraph 12, class two or class four pursuant to article 1 of this chapter and occupies
the property as a residence, the person may have the classification reviewed for change
to class three from the date of conversion and may appeal from the decision resulting
from the review in the same manner as provided by law for review of a valuation for ad
valorem property taxes and appeal from that review.


B. If a person makes such a conversion or appeals the classification after the
county assessor has closed the rolls, the person may petition the county board of
supervisors to change the classification and reduce the assessed valuation from the date
of conversion.


C. The board of supervisors shall entertain the petition in the same manner as a
board of equalization hears a request for reduction in valuation.


D. The petitioner may appeal the board of supervisors' decision in the same manner
as provided in section 42-16111, except that the petitioner shall file the notice of
appeal within fifteen days after the board's finding.


E. If the board of supervisors finds that the property is in fact being used for
residential purposes and should be listed as class three property, it shall change the
classification on the roll and fix the assessed valuation from the date of
conversion. The amount of taxes that is assessed against the property shall be computed
by applying the current tax rate to the original assessed valuation prorated for the
portion of the tax year before the property was converted plus the current tax rate
applied to the reassessed value of the property prorated for the balance of the year.


F. The board of supervisors shall notify the department, assessor and county
treasurer of the change in classification, the change in assessed valuation and the
amount of tax assessed. The department and the assessor may appeal any such decision in
the same manner as provided in section 42-16111. The assessor and treasurer shall note
the change on their records, and the treasurer may issue a future tax credit, endorsed by
the board, to the person whose property is liable for the tax. The tax credit shall be
used on the next or several succeeding property tax assessments that the person may owe
thereafter.