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

(b)  A special land reserve is established toenable the owner of any parcel of land within a hotel, apartment, resort,commercial, or industrial district to dedicate his land for residential use andto 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 familydwelling residential use, (2) the owner of the land dedicated shall use it ashis home, and (3) not more than one parcel of land shall be dedicated forresidential use by any owner.

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

Upon receipt of any such petition, the directorof taxation shall make a finding of fact as to whether the land described inthe petition is being used by the owner for single family dwelling residentialuse only and as his home.  If the finding is favorable to the owner, thedirector of taxation shall approve the petition and declare the land to bededicated.

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

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

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

(f)  The director of taxation shall prescribethe form of the petition.  The petition shall be filed with the director oftaxation by September 1 of any calendar year and shall be approved ordisapproved by December 15.  If approved, the assessment based upon theuse requested in the dedication shall be effective on January 1 of thenext calendar year.

(g)  The owner may appeal any disapprovedpetition 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]