If a property is subdivided after its five-year tax exclusion begins, does the owner of the new parcel get the remaining years of exclusion?
If the example for this question were pertaining to a parcel with qualifying improvements (improved real property), as outlined in the statutes, the answer would be “yes.” Remember, a new application is required of the new owner. Parcels that are vacant are not entitled to the exclusion. For real estate improvements that are part of the sale, we would say “yes.” If only vacant land is sold from a tract that has improvements, then the answer would be “no” until new improvements are made to the vacant tract. Partial Improvements and Exclusion – Improvements that are only partially completed as of January 1 will be appraised in accordance with the degree of completion on January 1 and the exclusion does not apply to these partially completed improvements until they are completed. The exclusion starts the first January following the completion of the improvements provided the proper application for exclusion has filed in a timely manner by the owner. New Improvements and Exclusion – Brownf
