Developer Deferment

Appraisal File — Base Values

Developer Deferment is a tax incentive given to developers, that will put a lower value on land and/or new construction, thereby reducing the tax burden until ownership of the property is transferred from developer to new owner, at which point the full value is applied to the assessment.

A checked developer deferment box does two things:
1. Uses the land model deferment value. See how to set this up in Lot Model Table. (This covers a developers deferment on land only.)
2. Allows for the transfer of the percentage of new construction over to the assessment form. The appraisal file will not show a difference in value. (This covers a development deferment on new construction only.)

• When rolled to the assessment file the new construction will roll based on the allowed percentage (based on rate in county information table for developer deferment) to the new construction amount. In addition, only that value amount will roll to the improvement value + the improvement value – new construction.
• This will occur until the developer deferment is removed through a sale. This is in case the developer deferment is on the account for multiple years.
  

Calculation rolling from Appraisal to Assessment.
New Construction: 50,000 * (1-.5) = 25,000
Improvement Value: 94,360- (50,000 * (1-.5)) = 69,360

If there is new construction on an appraisal record AND the developer deferment is checked, user will be asked to clear the new construction.
ANSWER Yes, as the new construction is already included in the developer deferment calculation.

When adding new construction and there is a developer deferment the new construction amount will roll to the year of the new construction being added. This is due to situations where the developer deferment may run across multiple years.