[Ord. 2152, 8/8/2016]
The background provisions A through D above are hereby incorporated
and shall become part of this Part.[1]
[1]
Editor's Note: Said background provisions are included in
Ord. 2152, 8/8/2016, from which this Part is derived, a full copy
of which ordinance is on file in the Borough offices.
[Ord. 2152, 8/8/2016]
Unless the context specifically and clearly indicates otherwise,
the meaning of terms and phrases used in this Part shall be as follows:
The Local Economic Revitalization Tax Assistance Act of the
Commonwealth, Act No. 1977-76 (72 P.S. § 4722 et seq.),
as amended and supplemented.
The Borough of Pottstown, Montgomery County, Pennsylvania,
acting by and through its Borough Council or, in appropriate cases,
acting by and through its authorized representatives.
The Commonwealth of Pennsylvania.
The County of Montgomery, Pennsylvania, acting by and through
its Board of County Commissioners, or, in appropriate cases, acting
by and through its authorized representatives.
The geographical limits of the Borough of Pottstown, as identified
in this Part.
Any industrial, commercial or other business property, as
defined by this Part, located in the designated area.
Repair, construction or reconstruction, including alterations
and additions, having the effect of rehabilitating any industrial,
commercial or other business property owned by any individual, association
or corporation and located in the designated area; "improvements"
does not include any ordinary upkeep or maintenance.
Any property located within the designated area (the Borough)
that does not contain a residential dwelling unit or units, except
for properties located within the designated PDIDA District that include
a commercial business on the first floor of the building. Any properties
located within the designated PDIDA District that only provide for
residential use are specifically excluded.
Includes the Borough, the county and the school district.
Any individual, partnership, company, association, society,
trust, corporation, municipality, municipality authority or other
group or entity.
The Pottstown School District, Montgomery County, Pennsylvania,
acting by and through its Board of School Directors, or, in appropriate
cases, acting by and through its authorized representatives.
[Ord. 2152, 8/8/2016]
The Borough Council does hereby designate the entire geographic
borders of the Borough of Pottstown as a "deteriorated area" within
the meaning of the Act and one in which the local taxing authorities
may grant a tax exemption pursuant to the provisions of the Act.
[Ord. 2152, 8/8/2016]
1.
The amount to be exempted from real estate taxes shall be limited
to that portion of the additional assessment attributable to the actual
cost of the new construction or improvement in accordance with the
exemption schedule established by this Part.
2.
The exemption from real estate taxes shall be limited to that new
construction or improvement for which an exemption has been requested
and is in a manner set forth in this Part and for which a separate
assessment has been made by the Montgomery County Assessment Office
("Assessment Office").
3.
A tax exemption granted under this Part shall first apply in the
tax year of this local taxing authority immediately following the
tax year in which the eligible new construction or improvements is
or are completed. Nothing in this Part is intended to limit or prohibit,
nor shall it be construed as limiting or prohibiting, the levy of
interim real property taxes upon new construction or improvements
prior to completion thereof.
4.
A tax exemption granted under this Part shall be upon the property
exempted and shall not terminate upon the sale or exchange of the
property.
5.
If an eligible property is granted a tax exemption pursuant to this
Part, the new construction or improvements shall not, during the exemption
period, be considered as comparable in assessing other properties.
[Ord. 2152, 8/8/2016]
1.
The length of the schedule of real estate taxes exempted shall not
exceed seven years for any property deemed to qualify for participation
in the LERTA program in accordance with the terms set forth in this
Part. The exemption schedule shall be as follows:
A.
For the first tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 100% of the eligible assessment shall be exempted.
B.
For the second tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 90% of the eligible assessment shall be exempted.
C.
For the third tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial, or other business property shall have first resulted in
increased assessment, 70% of the eligible assessment shall be exempted.
D.
For the fourth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 50% of the eligible assessment shall be exempted.
E.
For the fifth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 40% of the eligible assessment shall be exempted.
F.
For the sixth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 20% of the eligible assessment shall be exempted.
G.
For the seventh tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 10% of the eligible assessment shall be exempted.
H.
After the seventh tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 0% of the eligible assessment shall be exempted.
2.
In addition to the exemption schedule noted in Subsection 1 above, the following enhanced exemption schedule shall apply to any industrial, commercial or other business property whose commercial tenant is determined to be making a legitimate and measurable effort to employ residents of the Borough:
A.
For the first tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 100% of the eligible assessment shall be exempted.
B.
For the second tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 90% of the eligible assessment shall be exempted.
C.
For the third tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial, or other business property shall have first resulted in
increased assessment, 75% of the eligible assessment shall be exempted.
D.
For the fourth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 65% of the eligible assessment shall be exempted.
E.
For the fifth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 50% of the eligible assessment shall be exempted.
F.
For the sixth tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 30% of the eligible assessment shall be exempted.
G.
For the seventh tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 20% of the eligible assessment shall be exempted.
H.
After the seventh tax year immediately following the date upon which
the new construction or improvement constructed upon the industrial,
commercial or other business property shall have first resulted in
increased assessment, 0% of the eligible assessment shall be exempted.
[Ord. 2152, 8/8/2016]
1.
Any person who is an owner of eligible property and who desires tax
exemption pursuant to this Part with respect to new construction or
improvements on an eligible property shall apply in writing for such
exemption on a form to be provided by this local taxing authority
at the address set forth on such form, or if no address is set forth
thereon, at the principal office of this local taxing authority, and
must be received by this local taxing authority within 90 days following
the date of issuance of a building permit for the new construction
or improvements with respect to which exemption is desired or, if
no building permit is required and no other notification of new construction
or improvements is required to be given to the Borough, within 90
days following commencement of construction.
2.
This local taxing body shall make available to any person desiring
to apply for a tax exemption in accordance with this Part an application
form (the "application") which shall require such person to supply
the following information:
A.
The name of the owner or owners of the eligible property;
B.
The location of the eligible property, including the tax parcel identification
number or numbers assigned to such property for real property tax
purposes;
C.
The type of new construction or improvements to be made on the eligible
property;
D.
The nature of the improvements to be made to the eligible property;
E.
The date on which the relevant building permit was issued or, if
no building permit is required, the date on which construction commenced
or the estimated date on which it shall commence, as appropriate;
F.
The cost or estimated cost of the new construction or improvements;
G.
Such additional information as this local taxing authority may reasonably
require.
3.
The Borough Manager or his designee of this local taxing authority
shall forward a copy of such completed application to the county and
school district, together with a request or authorization to such
board or other appropriate assessment agency that, following completion
of the new construction or improvements in accordance with LERTA,
the application be approved, and give notice to this taxing authority
and the taxpayer.
4.
Appeals from the reassessment of an eligible property and the amounts
eligible for exemption may be taken by the taxpayer or this local
taxing authority as provided by law.
5.
The cost of new construction or improvements to be exempted and the
schedule of taxes exempted at the time of an initial request for tax
exemption made in accordance with the further provisions of the Ordinance
shall be applicable to that exemption request, and any subsequent
amendment to this Part, if any, shall not apply to applications filed
with this local taxing authority prior to their adoption.
[Ord. 2152, 8/8/2016]
1.
Disqualifying events include the following:
A.
Any property owner who elects to appeal the assessed value of a property
qualifying under LERTA during any exemption period granted shall be
deemed to be disqualified from participating in the LERTA program
upon the filing of such an appeal to the Board of Assessment.
B.
Any property owner who fails to pay when due any and all nonexempt
real estate taxes together with water/sewer rents relating to a participating
property in the LERTA program or any other property as may be owned
by the same property owner within the designated area.
C.
Any other matter that is determined by the Borough to be in contravention
of this Part.
[Ord. 2152, 8/8/2016]
1.
Any standing or ad-hoc committee shall be formed to oversee the LERTA
program enacted or approved within the Borough shall include representation
from the Borough and school district. As a part thereof, the Borough
and the school district shall be entitled to receive either directly,
or through any standing or ad-hoc committee so established, any monthly
report generated, including a listing of all current properties within
the Borough and the assessed values thereof, inclusive of residential,
commercial and tax exempt, together with any monthly report generated
listing all businesses operating within the Borough, the type of business
conducted, and the number of employees working at the business location.
2.
Any previously adopted ordinance or part thereof which conflicts
with the provisions of this Part is hereby repealed.
3.
The provisions of this Part are severable, and if any of its sections,
clauses or sentences shall be held illegal, invalid or unconstitutional
such provisions shall not affect or impair any of the remaining sections,
clauses or sentences.
[Ord. 2152, 8/8/2016]
In the event any provision, section, sentence, clause or part
of this Part shall be held to be invalid, such invalidity shall not
affect or impair any remaining provision, section, sentence, clause
or part of this Part, it being the intent of the Borough that such
remainder shall be and shall remain in full force and effect.
[Ord. 2152, 8/8/2016]
It is declared that enactment of this Part and the provisions
hereof are necessary for the protection, benefit and preservation
of the health, safety and welfare of inhabitants of the Borough.
