Borough of East Stroudsburg, PA Tax Assistance Program

Editor's Note: The Acts referred to are the Local Economic Revitalization Tax Assistance Act (LERTA) and the Improvement of Deteriorating Real Property or Areas Tax Exemption Act (IDRPATE).

The following definitions shall apply for the deteriorating dwelling improvement section under the Improvement of Deteriorating Real Property or Areas Tax Exemption Act:

DETERIORATED PROPERTY

A dwelling unit located in a deteriorated neighborhood as hereinafter provided, or a dwelling unit which has been or upon request is certified by a health, housing or building inspection agency as unfit for human habitation for rent withholding, or other health or welfare purposes, or has been the subject of an order by such an agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.

DWELLING UNIT

Unless otherwise defined in the ordinance or resolution providing for tax exemption, a house, apartment or group of rooms intended for occupancy as separate living quarters by family or other groups or a person living alone, containing a kitchen or cooking equipment for the exclusive use of the occupants.

IMPROVEMENT

Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a structure so that it becomes habitable or attains higher standards of housing safety, health or amenity, or is brought into compliance with laws, ordinances or regulations governing housing standards; ordinary upkeep and maintenance shall not be deemed an improvement.

The following definitions shall apply for the property qualifying under the deteriorating area improvement section under the Improvement of Deteriorating Real Property or Areas Tax Exemption Act:

DETERIORATING AREA

That portion of the municipality which the municipal governing body determines to be physically blighted on the basis of one or more of the following standards:

(1)

The residential buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and/or social liabilities.

(2)

The residential buildings are substandard or unsanitary for healthful and safe living purposes.

(3)

The residential buildings are overcrowded, poorly spaced or are so lacking in light, space and air as to be conducive to unwholesome living.

(4)

The residential buildings are faultily arranged, cover the land to an excessive extent or show a deleterious use of land, or exhibit any combination of the above which is detrimental to health, safety or welfare.

(5)

A significant percentage of buildings used for residential purposes is more than 20 years of age.

(6)

A substantial amount of unimproved, overgrown and unsightly vacant land exists which has remained so for a period of five years or more indicating a growing or total lack of utilization of land for residential purposes.

(7)

A disproportionate number of tax exempt or delinquent properties exist in the area.

DWELLING UNIT

Unless otherwise defined in this article or ordinance providing for tax exemption, a house, double house or duplex, townhouse or row house, apartment or any building intended for occupancy as living quarters by an individual, a family or families or other groups of persons, which living quarters contain a kitchen or cooking equipment for the exclusive use of the occupant or occupants.

RESIDENTIAL CONSTRUCTION

The building or erection of dwelling units, as defined above, upon vacant land or land specifically prepared to receive such structures.

The following definitions shall apply for the properties qualifying under the Local Economic Revitalization Tax Assistance Act:

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 unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinance or regulations.

IMPROVEMENT

Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a deteriorating 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 improvement.

§ 144-46 Exemption areas.

The Council of the Borough of East Stroudsburg, by resolution, has designated several deteriorated properties and/or deteriorated areas pursuant to the definitions herein contained within the Borough of East Stroudsburg which are identified as Areas I through V and for which a description is attached as Exhibit A.[1]

[1]

Editor's Note: Exhibit A is on file in the Borough offices.

§ 144-47 Exemption amounts.

The amount to be exempted from real estate taxes for eligible industrial, commercial or other business property shall be limited to that portion of the additional assessment attributable to the actual costs of improvements in accordance with the exemption schedule established within this article. In the case of improvement to an existing residential unit or the construction of new dwelling units, the exemption from taxes shall be limited to the additional assessment valuation attributable to the actual costs of improvements to deteriorated property not in excess of the maximum cost per dwelling unit, which maximum cost shall be $21,140 per dwelling unit.

The exemption from real estate taxes shall be limited to that improvement for which an exemption has been requested in the manner set forth below and for which a separate assessment has been made by the Monroe County Board of Assessment Appeals.

§ 144-48 Exemption schedule.

The following schedule is adopted with respect to deteriorated property as defined under the Local Economic Revitalization Tax Assistance Act and deteriorated dwelling improvement under the Improvement of Deteriorating Real Property or Areas Tax Exemption Act:

IMPROVEMENT EXEMPTION SCHEDULE
Year	Percent of Deduction on Improvements	Percent of Tax Collected on Increased Assessment
1	100%	0%
2	80%	20%
3	60%	40%
4	40%	60%
5	20%	80%
6	0%	100%

The following schedule for tax exemption with respect to the improvement of deteriorating area under the deteriorating area improvement section of the Deteriorating Real Property or Areas Tax Exemption Act is hereby adopted:

IMPROVEMENT EXEMPTION SCHEDULE
Year	Percent of Deduction on Improvements	Percent of Tax Collected on Increased Assessment
1	100%	0%
2	100%	0%
3	100%	0%
4	0%	100%

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

§ 144-49 Procedure for obtaining exemption.

At the time a building permit for the construction of an improvement is applied for, the Borough's Code Enforcement Officer shall notify the applicant by a printed notice of the possibility of tax exemption under this article. When the building permit is issued, the taxpayer shall apply to the Board of Assessment Appeals for such exemption. The taxpayer shall be permitted to apply for exemption provided for in this article up to a period of 90 days from the date of the final executed building permit. The exemption shall be in writing and shall contain the following information:

(1)

The date the building permit or alteration permit was issued for said improvement.

(2)

The type of improvement.

(3)

A summary of the plans for the improvement.

(4)

The cost of the improvements.

The Board of Assessment Appeals shall determine whether the exemption shall be granted. A copy of the approved request for exemption shall be forwarded by the Board of Assessment Appeals to the taxpayer.

Upon completion of the improvement, the taxpayer shall notify the Board of Assessment Appeals, the Borough of East Stroudsburg and the East Stroudsburg Area School District so that the Board may assess the improvements separately for the purpose of calculating the amount of assessment eligible for exemption.

The Board of Assessment Appeals shall notify the taxpayer of the amount of assessment eligible for exemption.

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

Notwithstanding the above, taxpayers who have formally notified the Monroe County Board of Commissioners, the Borough of East Stroudsburg or the East Stroudsburg Area School District of their intent to apply for such exemption during the pendency of proceedings to adopt this article and who initiated the construction of improvements after August 21, 2000, in reliance upon the availability of an exemption hereunder, shall have a period of 30 days from the adoption hereof to make application for such exemption.

§ 144-50 Termination of provisions; effect.

Unless otherwise repealed by Council, this article shall terminate on December 31, 2005. However, any exemptions approved prior to that date will remain in effect. Nothing contained herein shall act to prohibit the Council of the Borough of East Stroudsburg from enacting a similar ordinance or from extending this one. Any property tax exemptions granted under the provisions of this article shall be permitted to continue according to the exemption schedule even if this article expires or is repealed.

§ 144-51 Contingency of provisions.

This article is contingent upon approval of similar resolutions by the East Stroudsburg Area School District Board of Directors and the Monroe County Commissioners. In the event that either the East Stroudsburg Area School District Board of Directors or the Monroe County Commissioners fail to approve a resolution adopting the tax assistance program or substantially alter the program herein adopted, this article shall be null and void.