(1) The aggregate amount of the levy or assessment made against any lot or parcel of land shall not exceed one half (½) of the cash value of the lot and improvements on the lot.
(2) By cash value, it is the intent of this section to mean the fair sale price of the lot and improvements on the lot if sold at a voluntary sale.
(3) The city or town shall pay any part of the levy or assessment against any such lot or parcel of land as may be in excess of one half (½) of the cash value of the lot or parcel of land.