[Adopted 5-9-2022 by Ord. No. 808]
A.
This article shall be known and be cited as the "Wilson Borough 315
South 24th Street & Washington Boulevard LERTA Ordinance."
B.
This article is enacted under the authority of the Pennsylvania General
Assembly Act No. 76 of 1977, as amended, 72 P.S. § 4722
et seq., the Local Economic Revitalization Tax Assistance Act, otherwise
known as "LERTA."
C.
The purposes of this article are to provide for the exemption from
real estate taxation the assessed value of improvements to deteriorated
properties within the boundaries of the Wilson Borough 315 South 24th
Street & Washington Boulevard LERTA District, a deteriorated area
located within the Borough of Wilson ("the Borough") that was established
by the Council of the Borough ("the Council") on April 25, 2022, establishing
the exemption schedule and providing procedures for the operation
of the same in accordance with LERTA.
As defined in LERTA § 3,72 P.S. § 4724 (Definitions)
with respect to Subsections B and D below, as used in LERTA § 4,
72 P.S. § 4725 (Deteriorated area) with respect to Subsection
A below, as used in LERTA § 5, 72 P.S. § 4726
(Exemption schedule) with respect to Subsection C below, and as used
in LERTA § 6, 72 P.S. § 4727 (Procedure for obtaining
exemption) with respect to Subsections C, E and F below, and as used
in this article, the following words and phrases shall have the meaning
set forth below:
A.
"Deteriorated area." The Wilson Borough 315 South 24th Street &
Washington Boulevard LERTA District, whose boundaries were affixed
by the Council of the Borough on April 25, 2022, by adoption of the
Wilson Borough 315 South 24th Street & Washington Boulevard LERTA
Resolution.
B.
"Deteriorated property." Any industrial, commercial or other business
property owned by an individual, association, or corporation, and
located in a deteriorated area, or any such property which has been
the subject of an order by a government agency requiring the unit
to be vacated, condemned or demolished by reason of noncompliance
with laws, ordinance, or regulations.
D.
"Improvement." The 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.
E.
"Completion of improvement." The date when 85% of the deteriorated
property in a deteriorated area has been improved as evidenced by
certificates of occupancy from the Borough for no less than 85% of
the gross floor area of the deteriorated property's building,
or an earlier date at the option of the owner of the deteriorated
property who shall notify the Borough Manager in writing of the earlier
date, but not later than four years from the date when the deteriorated
property has been acquired by the owner of the deteriorated property.
F.
"Separate assessment." The total assessment for the Improvement,
including the amount which the Northampton County Assessment Office
("the County Assessment Office") shall, after completion of improvement,
assess separately for the improvement, the amount of any change in
assessed valuation of the improvement[1] and the amount of any countywide revision of reassessment[2] attributable to the improvement.
G.
"Base assessment." The total assessment for all real estate in a
deteriorated area reduced by the amount of the separate assessment.
A.
The exemption schedule for the Deteriorated Property shall be as
follows:
(1)
For the first five full years commencing on the effective date of
the separate assessment ("effective date"), the exemption shall be
the amount of real estate tax based on 100% of the separate assessment.
(2)
For the second five full years commencing on the fifth anniversary
of the effective date, the exemption shall be the amount of real estate
tax based on the separate assessment in excess of $31,276.[1]
[1]
$31,276 is the amount of Borough real estate tax on the current
Base Assessment ($1,330,900) multiplied by the millage rate for the
Borough tax year 2022 (23.5 mills). If the Base Assessment and millage
rate remain unchanged, the current real estate tax on the properties
would double during last half of the LERTA Exemption Schedule.
B.
If an eligible property is granted an exemption pursuant to this
article, the improvement shall not, during the exemption period, be
considered as a factor in assessing other properties.
C.
The exemption granted under this article shall be upon the property
exempted and shall not terminate upon the sale or exchange of the
property.
A.
The owner of the deteriorated property desiring exemption under this
article shall notify the Borough Manager, in writing on a form provided
by the Borough submitted at the time the owner of the deteriorated
property secures a building permit for an improvement, or if no building
permit or other notification of the improvement is required, at the
time construction commences. A copy of the exemption request shall
be forwarded to the County Assessment Office. The County Assessment
Office shall, after completion of improvement, assess separately the
improvement and calculate the amount of the separate assessment eligible
for exemption in accordance with the exemption schedule of this article
and shall notify the owner of the deteriorated property and the Borough
of the separate assessment and the amount of the separate assessment
eligible for the exemption. Appeals from the separate assessment and
the amount eligible for the exemption may be taken by the owner of
the deteriorated property or the Borough as provided by law.
B.
The portion of the separate assessment to be exempted and the schedule
of taxes exempted existing at the time of the initial request for
exemption shall be applicable to that exemption request, and subsequent
amendment to this article, if any, shall not apply to the adoption
of any such amendment.
