(1) Whenever property assessed as an entire tract under sections 6.476, 7.130 to 7.270 or 7.465 to 7.565 is subsequently subdivided or partitioned, a person owning any of the subdivision or partition and desiring to remove the assessment from the subdivision or to apportion the assessment among the parcels in the partition shall apply to the city finance officer for a segregation of the assessment and a determination of the amount due on that subdivision or partition.

(2) The finance officer may thereupon cause an appraisal of the entire subdivision or partition at the owner’s cost and shall determine if the segregation can be made without prejudice to the security interest of the city. If there is no prejudice to the city, the finance officer shall, upon receiving payment applicable to the segregated portion of the tract, discharge the lien of the assessment on that subdivision or partition. Provided, however, that if the lien is discharged before it is determined if there will be a rebate or deficit assessment, the owner shall be advised in writing and a notation shall be made in the lien record of the possibility of a rebate or deficit assessment. If the finance officer determines that the city would be prejudiced by a segregation requested pursuant to subsection 7.250(1) or that another provision of this code requires payment in full, payment of the entire assessment for the subdivision or partition shall be a condition precedent to discharge of the lien of the assessment. The finance officer shall deny the application in writing and deliver or mail by first class mail, postage prepaid, the decision to the owner.

(3) Any owner aggrieved by the finance officer’s decision on an application for segregation of assessment under this section may seek its review before a hearings official following the procedures in section 2.021 of this code. The petitioner shall have the burden of proof in such review.

(4) Each application for segregation of assessment shall be accompanied by a fee in the amount specified in the schedule of fees established by the city manager pursuant to section 2.020 of this code.