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 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.
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:
DWELLING UNIT
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.
RESIDENTIAL INVESTMENT INCENTIVE BOUNDARY AREA(S)
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.
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.
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.