§246-12.3  Certain lands dedicated for
residential use.  (a)  The term "owner" as used in this section
means a person who is the fee simple owner of real property, or who is the
lessee of real property whose lease term extends at least ten years from the date
of the petition.



(b)  A special land reserve is established to
enable the owner of any parcel of land within a hotel, apartment, resort,
commercial, or industrial district to dedicate his land for residential use and
to have his land assessed at its value in residential use; provided that (1)
the land dedicated shall be limited to a parcel used only for single family
dwelling residential use, (2) the owner of the land dedicated shall use it as
his home, and (3) not more than one parcel of land shall be dedicated for
residential use by any owner.



(c)  If any owner desires to use his land for
residential use and to have his land assessed at its value in this use, he
shall so petition the director of taxation and declare in his petition that if
his petition is approved, he will use his land for single family dwelling
residential use only and that his land so dedicated will be used as his home.



Upon receipt of any such petition, the director
of taxation shall make a finding of fact as to whether the land described in
the petition is being used by the owner for single family dwelling residential
use only and as his home.  If the finding is favorable to the owner, the
director of taxation shall approve the petition and declare the land to be
dedicated.



(d)  The approval of the petition by the
director of taxation to dedicate shall constitute a forfeiture on the part of
the owner of any right to change the use of his land for a minimum period of
ten years, automatically renewable thereafter for additional periods of ten
years subject to cancellation by either the owner or the director of taxation.



(e)  Failure of the owner to observe the
restrictions on the use of his land or the sale of the property shall cancel
the special tax assessment privilege retroactive to the date of the dedication,
or the latest renewal-ten-year period, and all differences in the amount of
taxes that were paid and those that would have been due from assessment in the
higher use shall be payable with a ten per cent per year penalty from the
respective dates that these payments would have been due.  Failure to observe
the restrictions on the use means failure for a period of over twelve
consecutive months to use the land in the manner requested in the petition or
the overt act of changing the use for any period, or the sale of the real
property.  Nothing in this subsection shall preclude the State from pursuing
any other remedy to enforce the covenant on the use of the land.



The additional taxes and penalties, due and
owing as a result of failure to use or any other breach of the dedication shall
be a paramount lien upon the property pursuant to section 246-55.



(f)  The director of taxation shall prescribe
the form of the petition.  The petition shall be filed with the director of
taxation by September 1 of any calendar year and shall be approved or
disapproved by December 15.  If approved, the assessment based upon the
use requested in the dedication shall be effective on January 1 of the
next calendar year.



(g)  The owner may appeal any disapproved
petition as in the case of an appeal from an assessment. [L 1971, c 200, pt of
§1; am L 1975, c 157, §7; am L 1976, c 171, §1]