[Adopted 1-3-2012 by Ord. No. 1-12]
It is the policy of Washington Township to encourage new residential
development in the R-1, R-2 and R-3 Zoning Districts of the Township
by making Improvement of Deteriorating Real Property or Areas Tax
Exemption Act[1] incentives available for qualifying new residential construction
in designated qualified areas, provided the new residential construction
is eligible for the homestead or farmstead tax exemption pursuant
to the Property Exclusion Program Act, 53 Pa.C.S.A. § 8581
et seq. Therefore, the Township will consider providing Improvement
of Deteriorating Real Property or Areas Tax Exemption Act incentives
to new residential construction, which is within designated, qualified
and approved municipal areas of tax exemption, provided the new residential
construction is eligible for the homestead or farmstead tax exemption
pursuant to the Property Exclusion Program Act, 53 Pa.C.S.A. § 8581
et seq.
[1]
Editor's Note: See 72 P.S. § 4711-101 et seq.
This article is an Improvement of Deteriorating Real Property
or Areas Tax Exemption Act ordinance and shall be known and cited
as the "Washington Township Tax Exemption for New Residential Construction
Ordinance."
As used in this article, the following terms shall have the
meanings indicated:
A house, double house or duplex, townhouse, row house, or
condominium, intended for occupancy as living quarters by an individual,
a family or families or other persons, which living quarters contain
a kitchen or cooking equipment for the exclusive use of the occupant
or occupants, and may contain a residential garage if included as
an integral part of the same building, provided the dwelling unit,
as owned and occupied, is eligible, and continues to be eligible during
the period of exemption, for the homestead or farmstead tax exemption
pursuant to the Property Exclusion Program Act, 53 Pa.C.S.A. § 8581
et seq.
The building or erection of a dwelling unit, as defined herein,
upon vacant land or land specifically prepared to receive such structures.
Such area(s) within the Township which have been designated
by the Washington Township Council to be eligible for tax exemption
under the Improvement of Deteriorating Real Property or Areas Tax
Exemption Act ordinance of that municipality, and are designated by
the Washington Township Council as residential investment incentive
boundary area(s) at or following any public hearing held for the purpose
of so designating area(s) to be eligible for tax exemption in accordance
with this article. Once so designated by the municipality, the area(s)
shall be eligible for consideration of tax relief by the Township
under the terms and conditions of this article.
The following specific zoning districts encompass the residential
investment incentive boundary area of the Washington Township Tax
Exemption for New Residential Construction Ordinance. Any subsequent
changes to these properties by replotting of lot lines or subdivision
into smaller lots shall also be included.
A.
Residential investment incentive districts area: Eligible properties
situate in the R-1, R-2 and R-3 Zoning Districts of Washington Township,
Erie County, Pennsylvania.
In accordance with this article, the assessed valuation of new
residential construction may be exempted from property taxation in
accordance with the provisions and limitations provided herein.
A.
The exemption from real property taxation under this article shall
be limited to that portion of the increased assessment directly attributed
to the actual cost of eligible new residential construction.
B.
After the effective date of this article, if any dwelling unit, subject
to approved tax exemption, is damaged, destroyed or demolished by
any cause or for any reason, and the assessed valuation of the subject
property has been reduced as a result of said damage, destruction
or demolition, any exemption from real property taxation authorized
for that property shall be abated and proportioned by the percentage
of the damage, destruction or demolition.
The schedule for real estate taxes to be considered for exemption
shall be as follows:
A.
New residential construction:
(1)
For the first year during which the qualifying new residential construction
within a residential investment incentive boundary area becomes assessable,
100% of the eligible assessment related to qualified new residential
construction may be exempted.
(2)
For the second year during which the qualifying new residential construction
within a residential investment incentive boundary area becomes assessable,
100% of the eligible assessment related to qualified new residential
construction may be exempted.
(3)
For the third year during which the qualifying new residential construction
within a residential investment incentive boundary area becomes assessable,
100% of the eligible assessment related to qualified new residential
construction may be exempted.
(4)
There shall be no real estate tax exemption after three years.
B.
The exemption for new residential construction shall commence in
the tax year immediately following the year in which the qualified
new residential construction is substantially completed.
C.
The exemption from taxes granted pursuant to this article shall be
upon the qualifying property and shall not terminate upon the sale
or exchange of the property, provided that the dwelling unit, as owned
and occupied, remains eligible for the homestead or farmstead exemption
as herein required.
D.
Eligibility for the homestead or farmstead exemption for purposes
of real estate tax exemption hereunder, shall be determined by the
timely filing of an application for homestead or farmstead exemption
and the approval of that application by the County of Erie.
E.
If an eligible property is granted tax exemption, pursuant to this
article, then the new residential construction shall not, during the
exemption period, be considered as a factor in assessing other properties.
A.
Any person desiring tax exemption shall notify each local taxing
authority (Washington Township, Erie County, and the General McLane
School District) in writing on a form provided or approved by the
applicable taxing body. The completed form shall be submitted to the
appropriate authorities at the time of securing the zoning permit,
or if no zoning permit or other notification of new residential construction
is required, then at the time of commencing construction. Copies of
the completed documentation shall be contemporaneously filed directly
with the Township. The documentation shall include detailed information
that establishes the applicant's eligibility for the homestead
or farmstead tax exemption pursuant to the Property Exclusion Program
Act, 53 Pa.C.S.A. § 8581 et seq., and compliance with the
requirements of this article.
B.
Any subsequent amendment to this article shall not apply to property
exemption requests filed with Washington Township prior to the enactment
of any such amendment.
C.
In addition to the procedures set forth in this article, and to the
extent not inconsistent herewith, the Township hereby adopts the lawful
guidelines, procedures, and regulations of Erie County under the Erie
County Deteriorating Real Property or Areas Tax Exemption Act Ordinance,
and further authorizes the Erie County Board of Assessment to evaluate,
administer, and process any Improvement of Deteriorating Real Property
or Areas Tax Exemption Act tax exemption requests in accordance with
this article. To the extent of any inconsistency, this article shall
control.
This article and the tax exemptions provided for herein shall
not apply and shall not be available where:
A.
The property owner does not secure the necessary and proper permits
prior to construction of the dwelling unit;
B.
The property, as completed, does not comply with the minimum standards
of the laws, resolutions, and regulations of the Township, the General
McLane School District, and Erie County Pennsylvania;
C.
The property owner does not comply with the qualification requirements
of this article, including eligibility for the homestead or farmstead
tax exemption pursuant to the Property Exclusion Program Act, 53 Pa.C.S.A.
§ 8581 et seq. requirements of this article on an ongoing
basis;
D.
According to the laws, ordinances, regulations and codes of the Township,
the use for which the property is made is an unlawful use;
E.
The property contains an unlawful use; or
F.
The property owner fails to comply with the provisions of this article
hereafter adopted.
A.
Any tax exemption granted pursuant to this article shall be contingent
upon approval of a tax exemption for the same term by the County of
Erie and the General McLane School District, and upon its administration
by the Director of the Erie County Bureau of Assessment; and this
article shall take effect 30 days after the most recent adoption date
of Washington Township, the County of Erie, and the General McLane
School District.
B.
Unless sooner amended or repealed, this article and the exemptions
herein authorized shall expire at midnight on December 31, 2014; provided,
however, that a period of exemption hereunder which is established
as to specific new residential construction on or before the expiration
date hereof shall continue until the approved exemption period applicable
to that specific property and dwelling unit has been exhausted.
