City of Scranton, PA Article IX New Construction Tax Exemption

[Adopted 4-3-1996 by Ord. No. 57-1996]

§ 428-71 Definitions.

As used in this article, the following words and phrases shall have the meaning set forth below:

§ 428-72 Exemptions.

A. The exemption from real property shall be limited to:

(1) The exemption schedule as established within this article.

(2) The assessment valuation attributable to the cost of construction of the new improvement to the unimproved residential property not in excess of $500,000.

[Amended 6-23-2016 by Ord. No. 35-2016]

B. In all cases, the exemption from taxes shall be limited to that portion of the additional assessment attributable to the new construction and for which a separate assessment has been made by the Lackawanna County Board of Assessment Appeals and for which an exemption has been separately requested.

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

D. No tax exemption shall be granted if the property owner is delinquent in the payment of real property taxes on any property within the City of Scranton at the time of application for the tax exemption.

§ 428-73 Exemption schedule.

A. The following real estate tax exemption schedule commence in the tax year immediately following the year in which the building. For the first, second and third year for which the newly constructed improvement would otherwise be taxable, 100% of the eligible assessment shall be exempted.

[Amended 6-23-2016 by Ord. No. 35-2016]

B. The exemption from taxes granted under this article shall be upon the newly constructed improvement on the unimproved residential property and shall not terminate upon the sale or exchange of the property, but shall continue for the full time originally granted.

C. If an unimproved property containing a new improvement is granted tax exemption pursuant to this article, the property shall not, during the exemption period, be considered as a factor in assessing the value of other properties in the same area.

D. If the use of the unimproved property at the time the exemption is granted is modified, terminated or changed during the two-year 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 governing body of the City of Scranton, the exemption shall terminate as of the date the use was modified or terminated.

§ 428-74 Procedure for obtaining exemption.

A. Any person desiring tax exemption pursuant to this article shall apply to the City of Scranton at the time a building permit is secured. The application shall be in writing upon forms specified by the City of Scranton setting forth the following information:

(1) The date the building permit was issued.

(2) The location of the property to be improved.

(3) The cost of the improvement.

(4) A verification that the property has been inspected by the Building Code Official or his agent.

(5) Such additional information as the City of Scranton may require.

B. There shall be placed on the form application for building permits, the following:

C. A copy of the exemption requests shall be forwarded to the Lackawanna County Board of Assessment by the Building Code Official. The Board shall, after completion of the construction, assess separately, the improvement and the land upon which the new residential construction stands, calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by this article and notify the taxpayer and the local taxing authorities of the amounts of the assessment eligible for exemption.

D. The cost of construction per improvement to be exempted and the schedules of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendment to this article, if any, shall not apply to requests initiated prior to their adoption.

E. Appeals from the assessment and/or the amounts eligible for exemption may be taken by the City of Scranton or by the taxpayer as provided by law.

§ 428-75 Eligible areas.

[Amended 4-21-2016 by Ord. No. 6-2016]

It is hereby determined and declared by City Council that the following portion of the City qualify and are hereby designated as areas eligible for tax exempt status: All those land, areas and neighborhoods zoned by the City of Scranton as R1, R1(a), R2, R2/0, R3, CN and CD zoning districts as defined by the City of Scranton's Zoning Ordinance, File of Council No. 74, 1993.

§ 428-76 Amendments.

No amendment to this article shall be effective unless consented to by ordinance of the governing body of the City of Scranton.

§ 428-77 Nonpermissible exemptions.

Any exemption made permissible under this article shall not be applied to any industrial, commercial or other business property.

§ 428-78 Effective date.

[Amended 6-23-2016 by Ord. No. 36-2016]

This article shall become effective upon adoption by the school district of the City of Scranton and the Lackawanna County Board of Commissioners of a resolution exempting from real property, taxation properties in accordance with the terms of this article. In the event that the Scranton School District and the Lackawanna County Board of Commissioners fail to adopt such a resolution within 90 days from the approval of this article by the governing body of the City of Scranton, then this article shall automatically be repealed the next day.

§ 428-79 Automatic termination.

[Amended 4-12-1999 by Ord. No. 65-1999; 7-1-2002 by Ord. No. 16-2002; 4-21-2016 by Ord. No. 6-2016]

This ordinance shall automatically terminate 10 years from the effective date of this Ordinance. Any person who obtains an exemption hereunder shall be entitled to the entire exemption period of three years even if said three-year period goes beyond the termination date.