PRINTER'S NO. 2546
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 19850H1921B2546 - 2 -
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 19850H1921B2546 - 3 -
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. 19850H1921B2546 - 4 -
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. K13L53RLC/19850H1921B2546 - 5 -