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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY FARNESE, FONTANA, ERICKSON, COSTA, BOSCOLA, STACK, TARTAGLIONE AND FERLO, FEBRUARY 22, 2011 |
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| REFERRED TO FINANCE, FEBRUARY 22, 2011 |
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| AN ACT |
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1 | Amending the act of December 1, 1977 (P.L.237, No.76), entitled, |
2 | as amended, "An act authorizing local taxing authorities to |
3 | provide for tax exemption for certain deteriorated |
4 | industrial, commercial and other business property and for |
5 | new construction in deteriorated areas of economically |
6 | depressed communities; providing for an exemption schedule |
7 | and establishing standards and qualifications," further |
8 | providing for definitions, for areas and for exemptions. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. Section 3 of the act of December 1, 1977 |
12 | (P.L.237, No.76), known as the Local Economic Revitalization Tax |
13 | Assistance Act, is amended to read: |
14 | Section 3. Definitions. |
15 | The following words and phrases when used in this act shall |
16 | have, unless the context clearly indicates otherwise, the |
17 | meanings given to them in this section: |
18 | "Depressed area." That portion of a deteriorating area which |
19 | the governing body determines to be in greater need of economic |
20 | revitalization and improvement than other areas of the |
21 | deteriorating area. |
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1 | "Deteriorated property." Any industrial, commercial or other |
2 | business property owned by an individual, association or |
3 | corporation, and located in a deteriorating area, as hereinafter |
4 | provided, or any such property which has been the subject of an |
5 | order by a government agency requiring the unit to be vacated, |
6 | condemned or demolished by reason of noncompliance with laws, |
7 | ordinance or regulations. |
8 | "Improvement." Repair, construction or reconstruction, |
9 | including alterations and additions, having the effect of |
10 | rehabilitating a deteriorated property so that it becomes |
11 | habitable or attains higher standards of safety, health, |
12 | economic use or amenity, or is brought into compliance with |
13 | laws, ordinances or regulations governing such standards. |
14 | Ordinary upkeep and maintenance shall not be deemed an |
15 | improvement. |
16 | "Local taxing authority." A county, city, borough, |
17 | incorporated town, township, institution district or school |
18 | district having authority to levy real property taxes. |
19 | "Municipal governing body." A city, borough, incorporated |
20 | town or township. |
21 | Section 2. Sections 4 and 5 of the act, amended July 13, |
22 | 1988 (P.L.518, No.90), are amended to read: |
23 | Section 4. Deteriorated and depressed areas. |
24 | (a) Each local taxing authority may by ordinance or |
25 | resolution exempt from real property taxation the assessed |
26 | valuation of improvements to deteriorated properties and the |
27 | assessed valuation of new construction within the respective |
28 | municipal governing bodies designated deteriorated areas or |
29 | depressed areas of economically depressed communities in the |
30 | amounts and in accordance with the provisions and limitations |
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1 | hereinafter set forth. Prior to the adoption of the ordinance or |
2 | resolution authorizing the granting of tax exemptions, the |
3 | municipal governing body shall affix the boundaries of [a] |
4 | deteriorated [area or] areas and depressed areas, wholly or |
5 | partially located within its jurisdiction, if any. At least one |
6 | public hearing shall be held by the municipal governing body for |
7 | the purpose of determining said boundaries. At the public |
8 | hearing the local taxing authorities, planning commission or |
9 | redevelopment authority and other public and private agencies |
10 | and individuals, knowledgeable and interested in the improvement |
11 | of deteriorated areas, shall present their recommendations |
12 | concerning the location of boundaries of [a] deteriorated [area |
13 | or] areas and depressed areas for the guidance of the municipal |
14 | governing bodies, such recommendations taking into account the |
15 | criteria set forth in the act of May 24, 1945 (P.L.991, No.385), |
16 | known as the "Urban Redevelopment Law," for the determination of |
17 | "blighted areas," and the criteria set forth in the act of |
18 | November 29, 1967 (P.L.636, No.292), known as the "Neighborhood |
19 | Assistance Act," for the determination of "impoverished areas," |
20 | and the following criteria: unsafe, unsanitary and overcrowded |
21 | buildings; vacant, overgrown and unsightly lots of ground; a |
22 | disproportionate number of tax delinquent properties, excessive |
23 | land coverage, defective design or arrangement of buildings, |
24 | street or lot layouts; economically and socially undesirable |
25 | land uses. Property adjacent to areas meeting the criteria of |
26 | this section, but which would not otherwise qualify, may be |
27 | included within the deteriorated area or depressed area |
28 | designated if the local taxing authority determines that new |
29 | construction on such property would encourage, enhance or |
30 | accelerate improvement of the deteriorated properties within |
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1 | economically depressed communities. The ordinance or resolution |
2 | shall specify a description of each such area as determined by |
3 | the municipal governing body, as well as the cost of |
4 | improvements per unit to be exempted, and the schedule of taxes |
5 | exempted as hereinafter provided. |
6 | (b) Two or more municipal governing bodies may join together |
7 | for the purpose of determining the boundaries of a deteriorated |
8 | area and to establish the uniform maximum cost per unit, and |
9 | such municipal governing bodies shall cooperate fully with each |
10 | other for the purposes of implementing this act. The local |
11 | taxing authorities may by implementing ordinance or resolution |
12 | agree to adopt tax exemptions contingent upon the similar |
13 | adoption by an adjacent local taxing authority or by a local |
14 | taxing authority with mutual jurisdiction, within the |
15 | limitations provided herein. |
16 | Section 5. Exemption schedule. |
17 | (a) A local taxing authority granting a tax exemption |
18 | pursuant to the provisions of this act may provide for tax |
19 | exemption on the assessment attributable to the actual cost of |
20 | new construction or improvements or up to any maximum cost |
21 | uniformly established by the municipal governing body. Such |
22 | maximum cost shall uniformly apply to all eligible deteriorated |
23 | property within the local taxing authority jurisdiction. |
24 | (b) Whether or not the assessment eligible for exemption is |
25 | based upon actual cost or a maximum cost, the actual amount of |
26 | taxes exempted shall be in accordance with the schedule of taxes |
27 | exempted established by a local taxing authority subject to the |
28 | following limitations: |
29 | (1) The length of the schedule of taxes exempted shall |
30 | not exceed ten years in a deteriorated area nor exceed 15 |
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1 | years in a depressed area. |
2 | (2) The schedule of taxes exempted shall stipulate the |
3 | portion of new construction or improvements to be exempted |
4 | each year. |
5 | (3) The exemption from taxes shall be limited to the |
6 | additional assessment valuation attributable to the actual |
7 | costs of new construction or improvements to deteriorated |
8 | property or not in excess of the maximum cost per unit |
9 | established by a municipal governing body. |
10 | (c) The exemption from taxes authorized by this act shall be |
11 | upon the property exempted and shall not terminate upon the sale |
12 | or exchange of the property. |
13 | Section 3. This act shall take effect in 60 days. |
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