[Adopted 8-6-1985 by Ord. No. 1382 (Ch. XXIV, Part 4, Secs. 71 to 76, of the 1971 Code of Ordinances); amended in its entirety 4-5-2022 by Ord. No. 2022-01]
Chapter 414, Art. II, Borough of Indiana Local Economic Revitalization and Tax Assistance Program, is the policy of the Borough of Indiana to encourage new development, redevelopment and a revitalization of the real properties located within the Borough of Indiana, improving and contributing to local and regional economic redevelopment.
As used in this article, the following terms shall have the meanings indicated:
ASSESSED VALUATION
The assessment on real property by Indiana County Assessor upon which real estate taxes are collected.
IMPROVEMENT(S)
Repair, construction, or reconstruction, including alterations and additions increasing the property valuation. Improvement(s) to real property must amount to more than $20,000 of construction expense. Ordinary maintenance and upkeep are not considered improvements.
MUNICIPALITY
The Borough of Indiana, Pennsylvania.
NEW CONSTRUCTION
Building or improvement of a structure located within the Borough of Indiana after the LERTA application permit has been approved.
SCHOOL DISTRICT
Indiana Area School District.
In accordance with this article, the assessed valuation of new construction or improvements may be exempted from property taxation in accordance with the provisions and limitation described in this section.
A. 
The exemption from real property taxation shall be limited to that portion of the assessment which is directly attributed to the cost of the new construction or improvements after completion and approval of a LERTA permit application.
B. 
After the effective date of this article, if a structure benefiting from this tax exemption is damaged, destroyed or demolished under any circumstance, then the assessed value of the property shall be reduced as a result of that damage and any exemption from real property taxation shall be abated and proportioned relative to the percentage of damage, destruction or demolition.
C. 
Tax exemption schedule shall apply immediately following the tax year in which the eligible new construction or improvements have been completed.
D. 
The new construction or improvements to properties granted tax exemption under this LERTA shall not be a factor when establishing assessment values for other properties or for a qualified property at the time of sale.
E. 
The actual cost of the new construction or improvements to qualify for exemption must be in excess of $20,000.
F. 
The exemption from local real estate taxes provided for herein shall be forfeited by the taxpayer and/or any subsequent owner of the real estate for the failure to pay any nonexempt real estate taxes by the last day of the time period to pay such taxes without penalty. Upon receipt of the notice of nonpayment of nonexempt real estate taxes, the Borough shall discontinue the LERTA exemption.
A. 
Exemption schedule for residential, commercial and industrial real property improvements shall be:
First year
100%
Second year
100%
Third year
100%
Fourth year
100%
Fifth year
100%
Sixth year
100%
Seventh year
100%
B. 
Tax deferment terminates after the seventh year.
Property owners desiring tax exemption shall obtain a LERTA permit application from the Borough of Indiana Code Enforcement Department or Zoning Department and shall submit said permit when securing a zoning or construction permit before commencing with construction. Copies of this LERTA permit application shall be provided to all taxing bodies (Borough of Indiana, Indiana County, Indiana Area School District). The application shall document current assessed property valuation, proposed property valuation, anticipated start date of construction, anticipated completion date of construction and a verification that the property is eligible for tax exemption. Any subsequent amendment to this article shall not impact those exemption requests filed prior to the enactment of said amendment.
The Local Economic Revitalization Tax Assistance Ordinance shall not apply where the property owner fails to obtain the necessary permits prior to construction; does not comply with the minimum standards of the laws, resolutions, and regulations of the Borough of Indiana, Indiana Area School District, or Indiana County; does not use the property according to the lawful ordinances, regulations and codes of the Borough of Indiana; or the property owner does not comply with the provisions of this article as adopted.