Hugo tornado damage tops $22 million

The Hugo tornado damaged more than 340 homes -- including 39 that were destroyed -- at a loss to homeowners of more than $22 million, according to estimates released Monday by the Washington County Assessor's Office.

The lost value for those homes is $22,334,093, counting the structures only. The estimate doesn't include personal property within the homes, said Kevin Corbid, director of the county's Property Records and Taxpayer Services Department. And the numbers include only homes in the Creekview Preserve and part of the Waters Edge Development that were hardest hit by the tornado that tore through Hugo last month.

"We know there is a much larger area in Hugo and even extending out to Scandia that got storm and wind and hail damage," Corbid said. But, for now, only Waters Edge and Creekview Preserve are classified as a disaster area.

Generally, homeowners with damage within a disaster area are eligible for greater property tax relief than those whose homes are outside the area. But other homes that sustained significant damage could be eligible for some relief, Corbid said.

Homes sustained an average of $65,496 in damage, according to the county.

When a county or city applies for disaster credit and reimbursement on property taxes, it must establish a formal disaster area. For the Hugo tornado, that area is composed of Waters Edge and Creekview Preserve. If the county finds enough damage in other areas, Corbid said, officials could expand the disaster area.

The nuts and bolts of tax relief

Properties that sustained more than 50 percent damage inside the defined disaster area are eligible for property tax abatements on their payable 2008 taxes. The county will compare the property's taxes on its pre-storm value for 2008 taxes to the taxes payable on its post-storm value and refund the difference.

For example, say a home was valued at $300,000 before the storm and paid $3,000 in property taxes. After the storm, let's say the home's value is $80,000 and would owe $800 in taxes. The homeowner would be refunded the $2,200 difference.

There would be no property tax abatement in 2008 for homes with less than 50 percent damage. But those homes would be eligible for a credit on 2009 property taxes, Corbid said.

Homes outside the disaster area that sustained more than 50 percent damage can get a credit, but it is equal to the tax difference only for the months the home is uninhabitable.

According to revised estimates, a total of 341 homes sustained damage in the defined disaster area. That included: 233 homes with 20 percent or less damage; 33 homes with 21 percent to 30 percent damage; 15 homes with 31 percent to 40 percent damage; seven homes with damage of 41 percent to 50 percent; 14 homes with 51 percent to 98 percent damage and 39 homes with more than 99 percent damage.