Partial Exemptions and Special Assessments of Land

# (1)

(1) Valuation of Land Under Improvements Having Only Partial Exemption. This rule does not apply to those cases where land is not eligible for inclusion in the exemption.

(a) The land under an improvement, when part of the improvement is receiving an exemption, is exempt in an amount of value that is proportional to the exempted and taxable portions of the improvement based on the real market value of each portion.

(b) Where an improvement does not fully occupy the land and where only a portion of the improvement and land are used for an exempt purpose, any portion of the land or improvement that is not used or developed, or that is being held for future expansion, is fully taxable.

(c) When an improvement is partially exempted and that improvement contains common areas (i.e., hallways, restrooms, conference rooms, etc.), the percentage of the total area of these common areas that receives exemption shall be the same as the percentage of the total net rentable area occupied by the exempt entity.

# (2)

(2) Valuation of Land Under Improvements Having Only Partial Special Assessment: The procedures described in section (1) of this rule also apply to properties receiving a partial special assessment, such as a partial historical designation.