Manna, Ryan Push for Reform of 485-B Tax Exemption
Created in 1976, the 485-B exemption allows owners of properties who construct improvements valued over $10,000, to spread out the amount of increased assessment value of their property over a 10-year period. The tax exemption was created to help out businesses who wanted to improve their property, but did not want to get hit with a huge increase in their assessment, and therefore a huge increase in their property taxes, all at one time. The exemption is spread out over time, allowing the property owner to only pay property taxes on 50% of the assessed value in the first year, and a decreasing amount in subsequent years. Walmart utilized the 485-B exemption for their Amherst location, and will save over $128,000 in property taxes over a 10-year period.