PRINTER'S NO.  617

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

474

Session of

2011

  

  

INTRODUCED BY FARNESE, FONTANA, ERICKSON, COSTA, BOSCOLA, STACK, TARTAGLIONE AND FERLO, FEBRUARY 22, 2011

  

  

REFERRED TO FINANCE, FEBRUARY 22, 2011  

  

  

  

AN ACT

  

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Amending the act of December 1, 1977 (P.L.237, No.76), entitled,

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as amended, "An act authorizing local taxing authorities to

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provide for tax exemption for certain deteriorated

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industrial, commercial and other business property and for

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new construction in deteriorated areas of economically

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depressed communities; providing for an exemption schedule

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and establishing standards and qualifications," further

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providing for definitions, for areas and for exemptions.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 3 of the act of December 1, 1977

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(P.L.237, No.76), known as the Local Economic Revitalization Tax

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Assistance Act, is amended to read:

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Section 3.  Definitions.

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The following words and phrases when used in this act shall

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have, unless the context clearly indicates otherwise, the

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meanings given to them in this section:

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"Depressed area."  That portion of a deteriorating area which

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the governing body determines to be in greater need of economic

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revitalization and improvement than other areas of the

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deteriorating area.

 


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"Deteriorated property."  Any industrial, commercial or other

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business property owned by an individual, association or

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corporation, and located in a deteriorating area, as hereinafter

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provided, or any such property which has been the subject of an

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order by a government agency requiring the unit to be vacated,

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condemned or demolished by reason of noncompliance with laws,

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ordinance or regulations.

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"Improvement."  Repair, construction or reconstruction,

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including alterations and additions, having the effect of

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rehabilitating a deteriorated property so that it becomes

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habitable or attains higher standards of safety, health,

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economic use or amenity, or is brought into compliance with

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laws, ordinances or regulations governing such standards.

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Ordinary upkeep and maintenance shall not be deemed an

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improvement.

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"Local taxing authority."  A county, city, borough,

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incorporated town, township, institution district or school

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district having authority to levy real property taxes.

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"Municipal governing body."  A city, borough, incorporated

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town or township.

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Section 2.  Sections 4 and 5 of the act, amended July 13,

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1988 (P.L.518, No.90), are amended to read:

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Section 4.  Deteriorated and depressed areas.

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(a)  Each local taxing authority may by ordinance or

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resolution exempt from real property taxation the assessed

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valuation of improvements to deteriorated properties and the

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assessed valuation of new construction within the respective

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municipal governing bodies designated deteriorated areas or

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depressed areas of economically depressed communities in the

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amounts and in accordance with the provisions and limitations

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hereinafter set forth. Prior to the adoption of the ordinance or

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resolution authorizing the granting of tax exemptions, the

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municipal governing body shall affix the boundaries of [a]

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deteriorated [area or] areas and depressed areas, wholly or

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partially located within its jurisdiction, if any. At least one

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public hearing shall be held by the municipal governing body for

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the purpose of determining said boundaries. At the public

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hearing the local taxing authorities, planning commission or

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redevelopment authority and other public and private agencies

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and individuals, knowledgeable and interested in the improvement

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of deteriorated areas, shall present their recommendations

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concerning the location of boundaries of [a] deteriorated [area

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or] areas and depressed areas for the guidance of the municipal

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governing bodies, such recommendations taking into account the

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criteria set forth in the act of May 24, 1945 (P.L.991, No.385),

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known as the "Urban Redevelopment Law," for the determination of

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"blighted areas," and the criteria set forth in the act of

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November 29, 1967 (P.L.636, No.292), known as the "Neighborhood

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Assistance Act," for the determination of "impoverished areas,"

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and the following criteria: unsafe, unsanitary and overcrowded

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buildings; vacant, overgrown and unsightly lots of ground; a

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disproportionate number of tax delinquent properties, excessive

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land coverage, defective design or arrangement of buildings,

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street or lot layouts; economically and socially undesirable

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land uses. Property adjacent to areas meeting the criteria of

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this section, but which would not otherwise qualify, may be

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included within the deteriorated area or depressed area 

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designated if the local taxing authority determines that new

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construction on such property would encourage, enhance or

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accelerate improvement of the deteriorated properties within

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economically depressed communities. The ordinance or resolution

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shall specify a description of each such area as determined by

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the municipal governing body, as well as the cost of

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improvements per unit to be exempted, and the schedule of taxes

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exempted as hereinafter provided.

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(b)  Two or more municipal governing bodies may join together

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for the purpose of determining the boundaries of a deteriorated

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area and to establish the uniform maximum cost per unit, and

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such municipal governing bodies shall cooperate fully with each

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other for the purposes of implementing this act. The local

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taxing authorities may by implementing ordinance or resolution

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agree to adopt tax exemptions contingent upon the similar

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adoption by an adjacent local taxing authority or by a local

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taxing authority with mutual jurisdiction, within the

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limitations provided herein.

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Section 5.  Exemption schedule.

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(a)  A local taxing authority granting a tax exemption

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pursuant to the provisions of this act may provide for tax

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exemption on the assessment attributable to the actual cost of

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new construction or improvements or up to any maximum cost

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uniformly established by the municipal governing body. Such

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maximum cost shall uniformly apply to all eligible deteriorated

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property within the local taxing authority jurisdiction.

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(b)  Whether or not the assessment eligible for exemption is

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based upon actual cost or a maximum cost, the actual amount of

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taxes exempted shall be in accordance with the schedule of taxes

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exempted established by a local taxing authority subject to the

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following limitations:

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(1)  The length of the schedule of taxes exempted shall

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not exceed ten years in a deteriorated area nor exceed 15

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years in a depressed area.

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(2)  The schedule of taxes exempted shall stipulate the

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portion of new construction or improvements to be exempted

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each year.

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(3)  The exemption from taxes shall be limited to the

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additional assessment valuation attributable to the actual

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costs of new construction or improvements to deteriorated

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property or not in excess of the maximum cost per unit

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established by a municipal governing body.

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(c)  The exemption from taxes authorized by this act shall be

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upon the property exempted and shall not terminate upon the sale

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or exchange of the property.

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Section 3.  This act shall take effect in 60 days.

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