PRINTER'S NO. 2546

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1921 Session of 1985


        INTRODUCED BY MAYERNIK, TRELLO, MARKOSEK, J. L. WRIGHT,
           ANGSTADT, JOHNSON, HALUSKA, TELEK, NAHILL, LEVDANSKY,
           SIRIANNI, STABACK, BUNT, COY, MERRY, PISTELLA, COWELL,
           HOWLETT, BELARDI, SEMMEL AND HERMAN, NOVEMBER 25, 1985

        REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 25, 1985

                                     AN ACT

     1  Empowering certain local taxing authorities to provide
     2     exemptions from taxation for certain improvements made to
     3     certain unimproved residential property.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the New Home
     8  Construction Local Tax Abatement Act.
     9  Section 2.  Construction.
    10     This act shall be construed to authorize local taxing
    11  authorities to exempt improvement to certain unimproved
    12  residential property implementing section 2(b)(iv) of Article
    13  VIII of the Constitution of Pennsylvania.
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall
    16  have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:


     1     "Improvement."  The erection or construction of one or more
     2  residential buildings in compliance with laws, ordinances or
     3  regulations governing such actions.
     4     "Local taxing authority."  A county, city, borough,
     5  incorporated town, township, school district or home rule
     6  municipality having authority to levy real property taxes.
     7     "Municipal governing body."  A city, borough, incorporated
     8  town, township or home rule municipality.
     9     "Unimproved residential property."  Any unimproved real
    10  estate owned by an individual, association, corporation or
    11  governmental entity located in this Commonwealth, which is or
    12  may be zoned, in accordance with the provisions of the act of
    13  July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
    14  Municipalities Planning Code, for residential use.
    15  Section 4.  New residential construction.
    16     (a)  Power to grant exemptions.--Each local taxing authority
    17  may, by ordinance or resolution, exempt from real property
    18  taxation the assessed valuation of improvements to unimproved
    19  residential property in the amounts and in accordance with the
    20  provisions and limitations set forth in this act. Prior to the
    21  adoption of the ordinance or resolution authorizing the granting
    22  of tax exemptions, the municipal governing body by ordinance or
    23  resolution shall affix the boundaries of the unimproved
    24  residential property or properties wholly or partially located
    25  within its jurisdiction for which the tax exemption shall be
    26  available. The municipal governing body shall conduct at least
    27  one public hearing for the purpose of determining the
    28  boundaries. At the public hearing, local taxing authorities,
    29  planning commissioners, redevelopment authorities, and other
    30  public and private agencies, individuals, associations and
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     1  corporations which are knowledgeable and interested in the
     2  improvement of unimproved residential property shall present
     3  their recommendations concerning the location of boundaries of
     4  the unimproved residential property or properties for the
     5  guidance of the municipal governing bodies. The ordinance or
     6  resolution adopted by a local taxing authority shall specify a
     7  description of the boundaries of the unimproved residential
     8  property or properties as determined by the municipal governing
     9  body, the cost of improvements per dwelling unit to be exempted,
    10  and the schedule of taxes exempted.
    11     (b)  Cooperation between municipalities.--Two or more
    12  municipal governing bodies may join together for the purpose of
    13  determining the boundaries of the unimproved residential
    14  property and to establish the uniform maximum cost per dwelling
    15  unit, and the municipal governing bodies shall cooperate fully
    16  with each other for the purposes of implementing this act. The
    17  local taxing authorities may, by implementing ordinance or
    18  resolution, agree to adopt tax exemptions contingent upon the
    19  similar adoption by an adjacent local taxing authority or by a
    20  local taxing authority with mutual jurisdiction, within the
    21  limitations provided herein.
    22     (c)  Limitation.--In the event a local taxing authority
    23  enacts an abatement ordinance under section 4(a) of this act and
    24  subsequently amends the ordinance to shorten the abatement
    25  period provided for in the original or latest version of the
    26  ordinance, the taxing authority shall not reduce the abatement
    27  period for those property owners eligible for and participating
    28  in the previously enacted abatement program. In the event a
    29  local taxing authority enacts an abatement ordinance under
    30  section 4(a) of this act and subsequently amends the ordinance
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     1  to extend the abatement period provided for in the original or
     2  latest version of the ordinance, the taxing authority may extend
     3  the abatement period for those property owners eligible for and
     4  participating in the previously enacted abatement program:
     5  Provided, however, That in no case shall the original period
     6  plus the extension result in an abatement period that exceeds
     7  two years.
     8  Section 5.  Exemption schedule.
     9     (a)  Amount of exemption.--A local taxing authority granting
    10  a tax exemption pursuant to this act may provide for tax
    11  exemption on the assessment attributable to the actual cost of
    12  improvements or up to any maximum cost uniformly established by
    13  the local taxing authority. The maximum cost shall apply
    14  uniformly to all eligible unimproved residential property within
    15  the local taxing authority jurisdiction.
    16     (b)  Schedule of taxes.--Whether or not the assessment
    17  eligible for exemption is based upon actual cost or a maximum
    18  cost, the actual amount of taxes exempted shall be in accordance
    19  with the schedule of taxes exempted established by the local
    20  taxing authority, subject to the following limitations:
    21         (1)  The length of the schedule of taxes exempted, which
    22     shall be known as the abatement period, shall not exceed two
    23     years.
    24         (2)  The schedule of taxes exempted shall stipulate the
    25     portion of improvements to be exempted each year.
    26         (3)  The exemption from taxes shall be limited to the
    27     additional assessment valuation attributable to the actual
    28     cost of improvements to the property or not in excess of the
    29     maximum cost per unit established by the local taxing
    30     authority.
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     1  Section 6.  Procedure for obtaining an exemption.
     2     (a)  Notification.--Any person desiring tax exemption,
     3  pursuant to ordinances or resolutions adopted pursuant to this
     4  act, shall notify each local taxing authority granting the
     5  exemption on a form provided by the local taxing authority. The
     6  form shall be submitted at the time the person desiring tax
     7  exemption secures the building permit, or if no building permit
     8  or other notification of improvement is required, at the time
     9  the person commences construction. A copy of the exemption
    10  request shall be forwarded to the Board of Assessment and
    11  Revision of Taxes or other appropriate assessment agency. The
    12  assessment agency shall, after completion of the improvement,
    13  assess separately the improvement and calculate the amounts of
    14  the assessment eligible for tax exemption in accordance with the
    15  limits established by the local taxing authorities and notify
    16  the taxpayer and local taxing authorities of the reassessment
    17  and the amounts of the assessment eligible for exemption.
    18  Appeals from the reassessment and the amounts eligible for the
    19  exemption may be taken by the taxpayer or the local taxing
    20  authorities as provided by law.
    21     (b)  Application of changes.--Except as may be authorized in
    22  section 4(c), the cost of improvements to be exempted and the
    23  schedule of taxes exempted existing at the time of the
    24  submission of the form as provided in subsection (a) shall be
    25  applicable to that exemption request.
    26  Section 7.  Effective date.
    27     This act shall take effect immediately.


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