This subdivision shall apply to any comparable replacement property acquired or newly constructed on or after July 1, 1999 and to the determination of base-year values for the 1996-97 fiscal year and fiscal years thereafter.

6.__Replacement property.__For the purposes of subsection 5:

A.__Property is substantially damaged or destroyed if it sustains physical damage amounting to more than 50 percent of its value immediately before the disaster.__Damage includes a diminution in the value of real or personal property as a result of restricted access caused by the disaster; and

B.__Replacement property is comparable to the property substantially damaged or destroyed if it is similar in size, utility and function to the real and personal property that it replaces, and if the fair market value of the acquired property is comparable to the fair market value of the replaced said property prior to the disaster.

7.__Property transfers between spouses.__For the purpose of subsection 1, the terms "purchased" and "change in ownership" shall not include the purchase or transfer of real or personal property between spouses since April 1, 1999, including, but not limited to, all of the following:

A.__Transfers to a trustee for the beneficial use of a spouse, or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor;

B.__Transfer to a spouse that takes effect upon the death of a spouse;

C.__Transfer to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal separation;

D.__The creation, transfer or termination, solely between spouses, of any coowner's interest; and

E.__The distribution of a legal entity's property to a spouse or a former spouse in exchange for the interest of the spouses in the legal entity in connection with a property settlement agreement or a decree of dissolution of a marriage or legal separation.