[Adopted 10-20-2015 by Ord. No. 1050]
As used in this article, the following words and phrases shall have the meanings set forth below:
ACT
The Pennsylvania Local Economic Revitalization Tax Assistance Act (LERTA), 72 P.S. § 4722 et seq.
BOROUGH
The Borough of West Reading, Berks County, Pennsylvania.
BOROUGH COUNCIL
The governing body of the Borough.
DETERIORATED AREA
The Borough.
EFFECTIVE DATE
October 20, 2015.
EXEMPTION
The exemption from Borough real property taxation established and obtained pursuant to the Act.
IMPROVEMENT
Any repair, construction or reconstruction, including alterations and additions, having the effect of improving and rehabilitating a property within the deteriorated area so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with all applicable laws, ordinances, codes, rules and regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an improvement.
PERSON
An individual, company, corporation, general partnership, limited partnership, association, limited liability company, trust, estate or other entity of any nature.
PROPERTY
Any industrial, commercial or other business property owned by any person and located in the deteriorated area; excluding home occupations and home-based businesses.
TAX EXEMPTION PROGRAM
The tax exemption program established by this article in accordance with the Act.
Each property located in the deteriorated area shall be eligible to participate in the tax exemption program so long as it meets all of the requirements for the tax exemption program as set forth in this article.
A. 
The amount to be exempted from Borough real property taxes shall be limited to that portion of the additional assessment valuation attributable to the actual costs of the improvements to the property constructed after the effective date of this article up to any maximum costs uniformly established by the Borough from time to time and must be actually incurred by the owner of the property who is requesting and will be responsible for the payment of Borough real property taxes assessed for such property.
B. 
The exemption shall be limited to the improvements for which the exemption has been requested in the manner set forth in this article and for which a separate tax assessment has been made by the Berks County Board of Assessment Appeals. The exemption shall only be granted if the improvements have been completed in compliance with all applicable laws, ordinances, codes, rules and regulations and a land development plan for the Improvements was approved by Borough Council, if required, prior to construction of such improvements.
C. 
In the case where a property in the deteriorated area is damaged, destroyed or demolished by any cause or for any reason and the assessed valuation of the property affected has been reduced as a result of such damage, destruction or demolition, the exemption from Borough real property taxation shall be limited to the actual cost of the improvements or construction that is in excess of the original assessment that existed prior to such damage, destruction or demolition. In the event a property has been fully demolished in accordance with a demolition permit issued by the Borough and such property remained vacant of any structure for more than one year from the date of issuance of such demolition permit, the exemption from Borough real property taxation shall be the actual cost of the improvements or construction.
D. 
The exemption from Borough real property taxes granted pursuant to this article shall be upon the improvements on the property and shall run with the land, and shall not terminate upon the sale or exchange of the property.
The length and the amount of the exemption provided for in this article shall be a declining percentage over a ten-year period, calculated as follows:
A. 
For the first year immediately following the date upon which the improvements become assessable, in an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
B. 
For the second year immediately following the date upon which the improvements become assessable, in an amount equal to 90% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
C. 
For the third year immediately following the date upon which the improvements become assessable, in an amount equal to 80% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
D. 
For the fourth year immediately following the date upon which the improvements become assessable, in an amount equal to 70% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
E. 
For the fifth year immediately following the date upon which the improvements become assessable, in an amount equal to 60% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
F. 
For the sixth year immediately following the date upon which the improvements become assessable, in an amount equal to 50% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
G. 
For the seventh year immediately following the date upon which the improvements become assessable, in an amount equal to 40% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
H. 
For the eighth year immediately following the date upon which the improvements become assessable, in an amount equal to 30% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
I. 
For the ninth year immediately following the date upon which the improvements become assessable, in an amount equal to 20% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
J. 
For the tenth year immediately following the date upon which the improvements become assessable, in an amount equal to 10% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.
K. 
The exemption shall terminate on the 11th year immediately following the date upon which the improvements become assessable.
Any person timely applying for and receiving an exemption in accordance with the provisions of this article shall be entitled to the exemption in accordance with the exemption schedule set forth in § 410-49 of this article even if such exemption schedule extends beyond the termination of the tax exemption program, and for this purpose, the tax exemption program shall continue in force and effect until the last such exemption amount granted pursuant hereto has expired. In the event of any dispute regarding the timeliness or completion of any such application, the determination of Borough Council made at a public meeting shall be final and binding.
A. 
Each application for exemption shall be in writing on a form established from time to time by resolution of Borough Council. Application for exemption forms may be obtained from the Borough at the Borough offices located at 500 Chestnut Street, West Reading, Berks County, Pennsylvania 19611.
B. 
Each person desiring an exemption in accordance with this article shall fully complete and submit to the Borough at 500 Chestnut Street, West Reading, Berks County, Pennsylvania 19611, an application for exemption at the time of application for a building permit or construction permit for such improvements. Failure to timely apply for the exemption shall disqualify the improvements from the exemption provided for in this article.
C. 
Upon receipt by the Borough of a fully completed application for exemption, the Borough shall forward a copy thereof to the Berks County Board of Assessment Appeals and instruct the Berks County Board of Assessment Appeals to separately assess the eligible improvements after completion of construction of such improvements, calculate the amount of the assessment eligible for tax exemption in accordance with the limits established by the Borough from time to time, if any, and notify the Borough and the taxpayer thereof. Appeals from the assessments and the amount eligible for the exemption may be taken by the owner of such property or the Borough, as provided by law; provided, however, after the initial assessment, the applicant waives the right to appeal the assessment for the term of the tax exemption program or exemption. Upon receipt of such notification from the Berks County Board of Assessment Appeals, the exemption may be taken in accordance with the exemption schedule set forth in § 410-49 of this article.
The exemption from Borough real property taxes provided for in this article shall be forfeited by the applicant and/or any subsequent owner of the property and such exemption shall be revoked by the Borough upon the occurrence of any of the following:
A. 
The failure to pay in full any nonexempt real estate taxes by the last day of the time period to pay such taxes in the penalty period. Upon receipt of the notice of nonpayment of nonexempt real property taxes, the Borough Treasurer shall immediately terminate the exemption.
B. 
The failure to pay when due any amount due and owing to the Borough. Upon receipt of notice of nonpayment of any such amount, the Borough Treasurer shall immediately terminate the exemption.
C. 
The failure to obtain and pay in full all fees for all necessary and proper permits and certificates prior to commencement of construction of the improvements to the property.
D. 
The failure to comply with the minimum standards established by all applicable laws, ordinances, codes, rules and regulations.
E. 
The failure to comply with the provisions of this article.
Borough Council is hereby authorized and empowered to adopt, promulgate, amend, implement and enforce, by resolution of Borough Council from time to time, reasonable rules and regulations to carry out the terms and provisions of this article.