[Adopted 9-27-2016 by Ord. No. 2016-08]
Millersville Borough is a local taxing authority, authorized by the Local Economic Revitalization Tax Assistance Act, the Act of December 1, 1977, P.L .237, No. 76, 72 P.S. § 4722 et seq., to provide tax exemption for new construction in deteriorated areas of economically depressed communities and for improvements to certain deteriorated industrial, commercial and other business properties to enable use of those properties for commercial, industrial and other business purposes. The statute provides that such designation is appropriate where there exists defective design or arrangement of buildings, streets or lot layouts. Certain areas of the Borough contain older buildings which may not be acceptable for current uses. Lots which have remained vacant even though zoned for development are also appropriate for such designation.
While the Borough is not in financial distress, the Borough Council desires to encourage improvements, new construction, and redevelopment in certain areas of the Borough defined in this article through the use of tax abatements authorized by law.
The Council of the Borough of Millersville held a public hearing on September 27, 2016, for the purpose of determining the boundaries of deteriorated areas within the Borough. The Borough Council seeks through this article to establish regulations, standards, and qualifications for tax abatements for the properties determined after such hearing.
The following words and phrases when used in this article shall have the following meaning:
- ASSESSED VALUATION
- The assessment placed on real property by the Lancaster County Assessor upon which all real estate taxes shall be calculated.
- The Borough of Millersville, Lancaster County, Pennsylvania.
- Any use within the definition of "commercial use" in Chapter 380, Zoning. A structure containing only dwelling units is not a commercial use.
- The governing body formed and assembled as the Council of the Borough of Millersville, Lancaster County, Pennsylvania.
- DETERIORATED AREA
- An area meeting the requirements of the Local Economic Revitalization Tax Assistance Act, 72 P.S. § 4722 et seq.
- 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.
- Repair, construction or reconstruction including alterations and additions having the effect of rehabilitating a deteriorated property so that it becomes usable for commercial, industrial or other business purposes or attains higher standards of safety, health, economic use or amenity for commercial, industrial or other business purposes, or is brought into compliance with laws, ordinances, or regulations governing such standards for properties used for commercial, industrial or other business purposes. Ordinary upkeep and maintenance shall not be deemed an improvement. Repair, construction or reconstruction of a property for residential use shall not be considered an improvement under this article.
- Uses included under the subheading "c. Industrial uses" in the Table of Permitted Uses - Primarily Nonresidential Districts in Chapter 380, Zoning.
- The Local Economic Revitalization Tax Assistance Act, the Act of December 1, 1977, P.L. 237, No. 76, 72 P.S. § 4722 et seq.
- LOCAL TAXING AUTHORITY
- The Borough, the School District, and Lancaster County.
- NEW CONSTRUCTION
- Construction on a deteriorated property to enable its use for commercial or industrial purposes. Construction of structures containing only dwelling units shall not be considered new construction for the purposes of this article.
- SCHOOL DISTRICT
- The Penn Manor School District.
The Borough Council determines that the areas deemed as deteriorated shall include the following:
The amount to be exempted from Borough real estate taxes shall be limited to that portion of the additional assessed valuation attributable to the actual cost of new construction or improvements to deteriorated property in accordance with the exemption schedule established by this article.
The exemption from Borough real estate taxes shall be limited to the assessed valuation attributable to the new construction or improvement for which an exemption has been requested in the manner set forth in this article and for which a separate assessment has been made by the Lancaster County Assessor.
The schedule of the Borough real estate taxes to be exempted shall be in accordance with the below portion of the assessed valuation attributable to new construction or improvements to be exempted each year.
If an eligible property is granted a Borough tax exemption pursuant to this article, the improvement shall not, during the exemption period, be considered as a factor in assessing other properties.
The exemption from Borough taxes granted under this article shall be upon the property and shall not terminate upon the sale or exchange of the property.
In the event there is a county-wide assessment of all real property located within Lancaster County, the tax exemption granted hereunder shall remain in effect in accordance with the terms of this article notwithstanding any such reassessment.
Any person desiring tax exemption from Borough real estate taxes under this article shall notify the Manager and Treasurer of the Borough, as well as the Business Manager of the School District, in writing on a form provided to the applicant at the time he/she secures a building permit for the new construction or improvement. A copy of the exemption request shall be forwarded to the Lancaster County Assessment Office. The Lancaster County Assessor shall, upon notice by the Applicant and after completion of the new construction or improvement, assess separately the new construction or improvement and calculate the amount of the assessment eligible for tax exemption in accordance with the limits established by this article and shall notify the taxpayer, the Borough and the School District of the reassessment and the amount of the assessment eligible for the exemption. Appeals from the reassessment and the amount eligible for the exemption may be taken by the taxpayer or the local taxing authority as provided by law.
The cost of the new construction or improvements to be exempted from Borough real estate taxes under this article and the schedule of Borough real estate taxes exempted existing at the time of initial request for tax exemption shall be applicable to that exemption request, and subsequent amendments to this article, if any, shall not apply to requests initiated prior to the adoption of such amendments.
An application for exemption from Borough real estate taxes may be made at any time within five years from the effective date of this article. All qualified applications under this article are eligible for the entire ten-year exemption schedule.
The Borough may, by ordinance enacted from time to time, extend the time for filing an application for exemption from Borough real estate taxes. However, in no event shall any one extension period exceed five years.
The exemption from Borough 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 in the penalty period. Upon receipt of the notice of nonpayment of nonexempt real estate taxes, the Borough Treasurer shall discontinue the LERTA exemption.