PRINTER'S NO. 422
No. 389 Session of 1987
INTRODUCED BY REBER, HAGARTY, ITKIN, JAROLIN, TIGUE, NOYE,
R. C. WRIGHT AND DALEY, FEBRUARY 23, 1987
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 23, 1987
AN ACT
1 Amending the act of December 1, 1977 (P.L.237, No.76), entitled
2 "An act authorizing local taxing authorities to provide for
3 tax exemption for certain deteriorated industrial, commercial
4 and other business property; providing for an exemption
5 schedule and establishing standards and qualifications,"
6 adding provisions relating to new construction in
7 deteriorated areas.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The title and sections 2, 4(a), 5 and 6 of the
11 act of December 1, 1977 (P.L.237, No.76), known as the Local
12 Economic Revitalization Tax Assistance Act, are amended to read:
13 AN ACT
14 Authorizing local taxing authorities to provide for tax
15 exemption for certain deteriorated industrial, commercial and
16 other business property and for new construction in
17 deteriorated areas of economically depressed communities;
18 providing for an exemption schedule and establishing
19 standards and qualifications.
20 Section 2. Construction.
1 This act shall be construed to authorize local taxing
2 authorities to exempt new construction in deteriorated areas of
3 economically depressed communities and improvements to certain
4 deteriorated industrial, commercial and other business property
5 thereby implementing Article VIII, section 2(b)(iii) of the
6 Constitution of Pennsylvania.
7 Section 4. Deteriorated areas.
8 (a) Each local taxing authority may by ordinance or
9 resolution exempt from real property taxation the assessed
10 valuation of improvements to deteriorated properties and the
11 assessed valuation of new construction within the respective
12 municipal governing bodies designated deteriorated areas of
13 economically depressed communities in the amounts and in
14 accordance with the provisions and limitations hereinafter set
15 forth. Prior to the adoption of the ordinance or resolution
16 authorizing the granting of tax exemptions, the municipal
17 governing body shall affix the boundaries of a deteriorated area
18 or areas, wholly or partially located within its jurisdiction,
19 if any. At least one public hearing shall be held by the
20 municipal governing body for the purpose of determining said
21 boundaries. At the public hearing the local taxing authorities,
22 planning commission or redevelopment authority and other public
23 and private agencies and individuals, knowledgeable and
24 interested in the improvement of deteriorated areas, shall
25 present their recommendations concerning the location of
26 boundaries of a deteriorated area or areas for the guidance of
27 the municipal governing bodies, such recommendations taking into
28 account the criteria set forth in the act of May 24, 1945
29 (P.L.991, No.385), known as the "Urban Redevelopment Law," for
30 the determination of "blighted areas," and the criteria set
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1 forth in the act of November 29, 1967 (P.L.636, No.292), known
2 as the "Neighborhood Assistance Act," for the determination of
3 "impoverished areas," and the following criteria: unsafe,
4 unsanitary and overcrowded buildings; vacant, overgrown and
5 unsightly lots of ground; a disproportionate number of tax
6 delinquent properties, excessive land coverage, defective design
7 or arrangement of buildings, street or lot layouts; economically
8 and socially undesirable land uses. Property adjacent to areas
9 meeting the criteria of this section, but which would not
10 otherwise qualify, may be included within the deteriorated area
11 designated if the local taxing authority determines that new
12 construction on such property would encourage, enhance or
13 accelerate improvement of the deteriorated properties within
14 economically depressed communities. The ordinance or resolution
15 shall specify a description of each such area as determined by
16 the municipal governing body, as well as the cost of
17 improvements per unit to be exempted, and the schedule of taxes
18 exempted as hereinafter provided.
19 * * *
20 Section 5. Exemption schedule.
21 (a) A local taxing authority granting a tax exemption
22 pursuant to the provisions of this act may provide for tax
23 exemption on the assessment attributable to the actual cost of
24 new construction or improvements or up to any maximum cost
25 uniformly established by the municipal governing body. Such
26 maximum cost shall uniformly apply to all eligible deteriorated
27 property within the local taxing authority jurisdiction.
28 (b) Whether or not the assessment eligible for exemption is
29 based upon actual cost or a maximum cost, the actual amount of
30 taxes exempted shall be in accordance with the schedule of taxes
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1 exempted established by a local taxing authority subject to the
2 following limitations:
3 (1) The length of the schedule of taxes exempted shall
4 not exceed ten years.
5 (2) The schedule of taxes exempted shall stipulate the
6 portion of new construction or improvements to be exempted
7 each year.
8 (3) The exemption from taxes shall be limited to the
9 additional assessment valuation attributable to the actual
10 costs of new construction or improvements to deteriorated
11 property or not in excess of the maximum cost per unit
12 established by a municipal governing body.
13 (c) The exemption from taxes authorized by this act shall be
14 upon the property exempted and shall not terminate upon the sale
15 or exchange of the property.
16 Section 6. Procedure for obtaining exemption.
17 (a) Any person desiring tax exemption pursuant to ordinances
18 or resolutions adopted pursuant to this act, shall notify each
19 local taxing authority granting such exemption in writing on a
20 form provided by it submitted at the time he secures the
21 building permit, or if no building permit or other notification
22 of new construction or improvement is required, at the time he
23 commences construction. A copy of the exemption request shall be
24 forwarded to the board of assessment and revision of taxes or
25 other appropriate assessment agency. The assessment agency
26 shall, after completion of the improvement, assess separately
27 the improvement and calculate the amounts of the assessment
28 eligible for tax exemption in accordance with the limits
29 established by the local taxing authorities and notify the
30 taxpayer and the local taxing authorities of the reassessment
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1 and amounts of the assessment eligible for exemption. Appeals
2 from the reassessment and the amounts eligible for the exemption
3 may be taken by the taxpayer or the local taxing authorities as
4 provided by law.
5 (b) The cost of new construction or improvements to be
6 exempted and the schedule of taxes exempted existing at the time
7 of the initial request for tax exemption shall be applicable to
8 that exemption request, and subsequent amendment to the
9 ordinance, if any, shall not apply to requests initiated prior
10 to their adoption.
11 Section 2. This act shall take effect in 60 days.
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