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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | November 21, 2013 02:18 PM |
|---|---|
| From: | Representative Jerry Stern |
| To: | All House members |
| Subject: | Tax Abatement for Re-Furbished Properties |
| I will introduce legislation that encourages mixed use redevelopment of blighted and abandoned properties. This legislation allows developers and property owners to receive a tax abatement incentive once they apply and are approved to rebuild upon an abandoned or blighted property or in a deteriorated area. In my bill, properties must fulfill specific requirements, such as being a “deteriorated property,” correct all code violations, conform to zoning requirements and increase the property value by at least twenty-five percent. The incentive program is broken down into yearly increments. From years one to three, there are no taxes assessed on the property. In years four to nine, there is a fifteen percent increase annually. Once the ten year mark is hit, the property is assessed for its full value. To ensure that consumers are prepared to pay the full assessment fee once the ten years is up, developers must submit a “good-faith” estimate when they apply to improve a property. This will make consumers aware of what they will be paying in future years, all the while allowing developers to estimate and organize their own expenses for improvements. In addition to Article VIII, section 2(b)(iii) of the Pennsylvania Constitution, two acts allow for similar incentives. Act 76 of 1977 incentivizes improvements for industrial, commercial and business properties. Act 34 of 1971 incentivizes improvements for residential properties. This bill is similar to both acts, but where it differs is its inclusion of mixed-use housing and development. If zoning ordinances permit mixed-use development, developers must improve and rebuild properties that align with mixed-use zoning. Mixed-use is a viable step in the right direction to eliminate suburban sprawl, decrease greenhouse gas emissions from automobile use, improve health by creating “walkable” areas, and improve economic and community development by encouraging a “live and work” environment for consumers. With the shifting generational changes, cities are becoming more popular than traditional suburban living. Thus, it is imperative for mixed-use development to be a focal point for re-development. |
Introduced as HB2045