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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | March 12, 2024 02:20 PM |
|---|---|
| From: | Senator Wayne D. Fontana |
| To: | All Senate members |
| Subject: | Expansion of Local Economic Revitalization Tax Assistance (LERTA) Program |
| Act 76 of 1977 established the Local Economic Revitalization Tax Assistance (LERTA) program in Pennsylvania. Under LERTA, municipalities can offer tax exemptions for certain designated, industrial, commercial and other business property so that companies or merchants pay no property taxes on the new value added to rehabilitation or construction. It is important to point out that the tax base is not reduced under this program because it only impacts the increase of the assessment of the property. Since properties are typically reassessed at the conclusion of a construction project, an owner is met with a significant increase in real estate taxes. The advantage with LERTA is that the program allows the increase to be slow and gradual for the property owner, lessoning the financial burden on them. The current disadvantage with LERTA is that it is still capped at the 1977 level of 10 years. Therefore, I will be introducing legislation to expand the LERTA cap to 20 years. The purpose of this act is to incentivize redevelopment of aging or deteriorating properties. This in turn would create economic growth and family-sustaining jobs for an area or region. With many of our surrounding states offering more lucrative tax abatements, we need to make sure Pennsylvania remains attractive. |
Introduced as SB1158
Memo Updated: March 12, 2024 02:21 PM