Borough of Shippensburg, PA Exemption for Improvements to Deteriorated Property

Refers to all that portion of the Borough of Shippensburg, Cumberland County, Pennsylvania, bounded and described as follows: beginning at a point at the intersection of West King Street and Morris Street, at the Cumberland County - Franklin County boundary line; thence through North Morris Street, by the Cumberland County - Franklin County boundary line, in a northerly direction, to a point at its intersection with West Martin Avenue; thence by the center line of West Martin Avenue, in an easterly direction, to a point at its intersection with North Spring Street; thence by the center line of North Spring Street, in a northerly direction, to a point at its intersection with Roxbury Road; thence by the center line of Roxbury Road, in a northerly direction, to a point at its intersection with West Burd Street: thence by the center line of West Burd Street, in an easterly direction, to a point at its intersection with North Fayette Street; thence by the center line of North Fayette Street, in a northerly direction, to a point at its intersection with Spring House Road; thence by the center line of Spring House Road, in an easterly direction, to a point at its intersection with Seneca Street, as extended; thence by the center line of Seneca Street, as extended, in a southerly direction, to a point at its intersection with West Burd Street; thence by the center line of West Burd Street and by the center line of East Burd Street, in an easterly direction, to the intersection of East Burd Street and North Penn Street; thence by the center line of North Penn Street, in a southerly direction, to a point at its intersection with East Martin Avenue; thence by the center line of East Martin Avenue, in an easterly direction, to a point at its intersection with the Borough of Shippensburg - Shippensburg Township boundary line; thence following the Borough of Shippensburg - Shippensburg Township boundary line, in a southerly direction, to a point at its intersection with East King Street and Richwalter Street; thence by the center line of Richwalter Street, in a southerly direction, to a point at its intersection with East Neff Avenue; thence by the center line of East Neff Avenue, in a westerly direction, to a point at its intersection with Davidson Avenue; thence by the center line of Davidson Avenue, in a southerly direction, to a point at its intersection with Phillips Avenue; thence by the center line of Phillips Avenue, in a westerly direction, to a point at its intersection with South Washington Street; thence by the center line of South Washington Street, in a northerly direction, to a point at its intersection with East Garfield Street; thence by the center line of East Garfield Street, in a westerly direction, to a point at its intersection with South Penn Street; thence by the center line of South Penn Street, in a southerly direction, to a point at its intersection with the Borough of Shippensburg - Shippensburg Township boundary line; thence following the Borough of Shippensburg - Shippensburg Township boundary line, in a westerly direction, to a point at its intersection with Middle Spring Creek; thence following Middle Spring Creek, in a northerly direction, to a point at its intersection with West Garfield Street; thence by the center line of West Garfield Street, in a westerly direction, to a point at its intersection with the Cumberland County - Franklin County boundary line; thence following the Cumberland County - Franklin County boundary line, in a westerly direction, to a point at its intersection with South Locust Street; thence by the center line of South Locust Street, in a northerly direction, to a point at its intersection with West Orange Street; thence by the center line of West Orange Street in a westerly direction, to a point at its intersection with South Morris Street, at the Cumberland County - Franklin County boundary line; thence through said South Morris Street, by the Cumberland County Franklin County boundary line, in a northerly direction, to a point at its intersection with West King Street, the place of beginning.

DETERIORATED PROPERTY

Any industrial, commercial or other business property owned by an individual, association or corporation, and located in a deteriorating area, as hereinafter provided, or any such property which has been the subject of an order by a government agency requiring the property to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.

IMPROVEMENT

Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances or regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an "improvement." No residential homes, apartments or other living establishments will be included.

LOCAL TAXING AUTHORITY

The Borough of Shippensburg, Shippensburg Area School District, the County of Cumberland or any other governmental entity having the authority to levy real property taxes within the Borough of Shippensburg.

MUNICIPAL GOVERNING BODY

The Borough of Shippensburg.

§ 140-39 Exemption limitations.

The exemption from real property taxes shall be limited to:

(1)

The exemption schedule as established within this article.

(2)

That portion of the additional assessment attributable to the actual cost of improvements to the deteriorated property.

(3)

The assessment valuation attributable to the cost of construction of a new industrial, commercial or other business unit.

In all cases, the exemption from taxes shall be limited to that portion of the additional assessment attributable to the improvement or new construction, as the case may be, and for which a separate assessment has been made by the Cumberland County Board of Assessment and Revision of Taxes, and for which an exemption has been separately requested.

No tax exemption shall be granted if the property owner does not secure the necessary and proper permits prior to improving this property.

In any case after the effective date of this article when deteriorated property is damaged, destroyed or demolished, by any cause or for any reason, and the assessed valuation of the property affected has been reduced as a result of said damage, destruction or demolition, the exemption from real property taxation authorized by this article shall be limited to that portion of new assessment attributable to the actual cost of improvements or construction that is in excess of the original assessments that existed prior to the damage, destruction or demolition of the property.

§ 140-40 Grant of exemption.

Exemption schedule.

(1)

For the four years immediately following the year in which the improvement becomes assessable, the following real estate tax exemption schedule shall be in effect:

	Length	Portion Exempt
	First year	100%
	Second year	100%
	Third year	67%
	Fourth year	33%

(2)

After the fourth year, the exemption shall terminate.

The exemption from taxes granted under this article shall be upon the property exempted and shall not terminate upon the sale or exchange of the property.

If an eligible property is granted tax exemption pursuant to this article, the improvement shall not, during the exemption period, be considered as a factor in assessing other properties.

If the use of the property at the time the exemption is granted is modified, terminated or changed during the four-year exemption period in any way which would have affected the exemption if the property had been so used when the exemption was granted, then, at the election of the Borough Council, the exemption shall terminate as of the date the use was modified or terminated if the Council determines that continuation of the exemption would be inconsistent with the purposes of this article.

§ 140-41 Applications.

Any person desiring tax exemption pursuant to this article shall apply to the Borough of Shippensburg at the time a building permit is secured for the construction of the improvement. The application shall be in writing upon forms specified by the borough, setting forth the following information:

(1)

The date the building permit was issued for said improvements.

(2)

The location of the property to be improved.

(3)

The nature of the property to be improved (industrial, commercial, etc.).

(4)

The type of improvement.

(5)

The summary of the plan of the improvement.

(6)

The cost of the improvement.

(7)

Such additional information as the borough may require.

A copy of the exemption request shall be forwarded to the County Board of Assessment by the Borough Building Permit Officer. The Board shall determine whether the exemption shall be granted and shall assess separately the improvements and calculate the amounts of the assessment eligible for the tax exemption in accordance with the limits established by this article and notify the taxpayer and local taxing authorities of the reassessment and amounts of the assessment eligible for tax exemption. In the case of new construction, the Board shall assess separately the unit and the land upon which the new construction stands and shall otherwise perform its duties as above provided for construction of improvements to properties.

The cost of improvements to be exempted and the schedule of taxes exempted, existing at the time of the initial request for tax exemption, shall be applicable to that exemption request, and subsequent amendments to this article, if any, shall not apply to requests initiated prior to their adoption.

Appeals from the reassessment and the amount eligible for the exemption may be taken by the borough or by the taxpayer as provided by law.

§ 140-42 Additional legislation required.

This article, in addition to being adopted by the Borough Council of the Borough of Shippensburg, shall only become effective upon adoption by the Shippensburg Area School District and the Cumberland County Board of Commissioners of a resolution/ordinance implementing the Local Economic Revitalization Tax Assistance Act in the above designated area of the Borough of Shippensburg.[1]

[1]

Editor's Note: The Shippensburg Area School District passed legislation implementing the Local Economic Revitalization Act on 9-10-1984. The Cumberland County Board of Commissioners passed similar legislation on 10-1-1984.

§ 140-43 Amendments.

No amendment to this article shall be effective unless consented to by resolution or ordinance of each local taxing authority which has consented to be bound by the terms of this article.

§ 140-44 Termination date.

This article shall automatically terminate seven years following the effective date hereof; provided, however, that any taxpayer who has received or applied for the exemption granted by this article prior to the expiration date herein provided shall, if said exemption is granted, be entitled to the full exemption authorized herein. This section shall not prevent the Borough Council, however, from repealing this article or any section thereof before seven years upon proper action of Council.

§ 140-45 Applicability.

Any exemption made permissible under this article shall not be applied to any residential home, apartment buildings or other living establishments, except hotels and motels which rent rooms to travelers on a short-term basis.