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Local Option N
Exempt the fair market value of land from gross income of speculative builders. Replace, IN LIEU OF LOCAL OPTION #M, Sec. ___-416(b)(2) with:
(2) Fair market value of land. Gross income from the sale of improved real property shall not include the "fair market value" of the land which is included in the real property sold, when a charge for such land is included in the total selling price of the real property sold.
(A) Except as provided in Subsection (b)(2)(B) below, the taxpayer must document such "fair market value" to the satisfaction of the Tax Collector, and maintain and provide such documentation upon demand in addition to and in like manner to the books and records required in Article III.
(B) In lieu of the documented fair market value of land allowed in Subsection (b)(2)(A) above, an amount equal to twenty percent (20%) of the total selling price may be used to estimate the "fair market value" of land.