Section 5. Optional moratorium for certain real estate taxes.
(a) Exemption for reconstruction and repairs.--A taxing authority may, by ordinance or resolution, exempt from real property taxation the assessed valuation of reconstruction or repairs made to properties damaged or destroyed by Hurricane Irene or Tropical Storm Lee. Upon the adoption of an ordinance or resolution authorizing an exemption of real estate taxes under this section, the taxing authority shall provide a copy of the ordinance or resolution to the county assessment office. The eligible exemption shall be limited to the difference between the assessed valuation of the property prior to the damages and any increase in valuation of the property due to the actual cost of reconstruction or repairs to the original structure.
(b) Exemption schedule.--For the first year for which the reconstruction or repairs would otherwise be taxable, 100% of the eligible assessment shall be exempted; for the second year, 50% of the eligible assessment shall be exempted and, for the third year, 25% of the eligible assessment shall be exempted. After the third year, the exemption shall terminate. No property may be eligible for tax exemption under this section unless reconstruction or repairs are begun within three years of the date of Hurricane Irene or Tropical Storm Lee.
(c) Termination upon transfer.--The exemption from taxation authorized by this section shall terminate upon the sale, transfer, conveyance or exchange of the property.
(d) Notice.--A taxing authority shall publish notice of the moratorium on taxation attributable to increases in assessed valuations due to reconstruction or repairs. The notice shall appear on at least two occasions in a newspaper of general circulation within the affected areas within 60 days of the adoption of the ordinance or resolution authorized under subsection (a).