Borough of Masontown, PA Local Economic Revitalization Tax Assistance

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.

§ 126-70 Exemption area.

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.

§ 126-71 Exemption amount.

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.

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 Fayette 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, regulations, and a land development plan, if required, was approved by Borough Council, prior to construction of such improvements.

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.

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.

§ 126-72 Exemption schedule.

The length and the amount of the exemption provided for in this article shall be the percentage over a ten-year period, as follows:

For the first year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the second year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the third year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the fourth year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the fifth year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the sixth year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the seventh year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the eighth year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the ninth year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

For the 10^th year immediately following the date upon which the improvements become assessable, an amount equal to 100% of the assessed valuation of the eligible improvements shall be exempted from Borough real property taxation.

The exemption shall terminate on the 11^th year immediately following the date upon which the improvements become assessable.

§ 126-73 Term of tax exemption program; sunset provision.

This Article VI of Chapter 126 shall become effective on the effective date and shall be applicable for a period of 10 calendar years thereafter, at which time it shall automatically expire.

§ 126-74 Exemption after termination.

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 § 126-72 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.

§ 126-75 Procedure for obtaining exemption.

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 1 East Church Avenue, Masontown, Fayette County, Pennsylvania 15461.

Each person desiring an exemption in accordance with this article shall fully complete and submit to the Borough at 1 East Church Avenue, Masontown, Fayette County, Pennsylvania 15461, 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.

Upon receipt by the Borough of a fully completed application for exemption, the Borough shall forward a copy thereof to the Fayette County Board of Assessment Appeals and instruct the Fayette 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, that 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 Fayette County Board of Assessment Appeals, the Exemption may be taken in accordance with the exemption schedule set forth in § 126-72 of this article.

§ 126-76 Revocation of exemption.

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:

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.

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.

The failure to obtain and pay in full all fees for all necessary and proper permits, licenses and certificates prior to commencement of construction of the improvements to, or occupancy of, the property.

The failure to comply with the minimum standards established by all applicable laws, ordinances, codes, rules and regulations.

The failure to comply with the provisions of this article.

§ 126-77 Rules and regulations.

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.

§ 126-78 Severability.

If any provision, sentence, clause, section, subsection or portion of this article is for any reason found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall not affect or impair any of the remaining provisions, sentences, clauses, sections, subsections or portions of this article. It is hereby declared as the intent of the Borough Council that this article would have been adopted had such unconstitutional, illegal or invalid provision, sentence, clause, section, subsection or portion thereof not been included herein.