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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | February 13, 2015 11:03 AM |
|---|---|
| From: | Representative Karen Boback |
| To: | All House members |
| Subject: | City Revitalization and Improvement Zone (CRIZ) - Adds Eligibility for a City of the Second Class A (Scranton) |
I am preparing to introduce legislation that will amend the Tax Reform Code to make a city of the second class A (Scranton) eligible to apply for a City Revitalization and Improvement Zone (CRIZ). I believe that there is little difference between Scranton and other similarly-sized cities with regard to the issues and problems they face in attracting development and economic activity, and it does not make sense to exclude them from this program. The CRIZ program allows a designated contracting authority to establish a 130 acre zone within the eligible municipality. The baseline revenue from a selection of state and local taxes collected in the zone is measured, and the increment of future tax revenue above the baseline is directed back to the contracting authority. The authority may use funds to repay bonds it has issued for development purposes, or it may use the funds for development purposes directly. Under current law, cities of the third class with a population of at least 30,000 are eligible if they have never been in receivership. Likewise, boroughs or townships with a population of at least 7,000 are eligible to apply for a pilot zone under the program. In addition to the two CRIZs and one pilot zone that have already been approved, beginning in 2016, DCED (along with Revenue and the Budget Office) may authorize two zones (CRIZs or pilot zones) each year. There is no limit on the total number of zones. To be clear, my legislation would not designate or set-aside a zone for Scranton. It would only make them eligible to apply for the program. There are many aspects of this program that merit review and discussion, including the overall number of zones and the criteria for which types of municipalities may apply. However, to the extent that there will be additional authorized zones in 2016 and beyond, I believe that Scranton should not be excluded from an opportunity to apply. I hope that you will join me by cosponsoring this legislation. |
Introduced as HB614