CROSS REFERENCES
Improvement of Deteriorating Property or Areas Tax Exemption
Act — See 72 P.S. § 4711-101 et seq.
Local Economic Revitalization Tax Assistance Law — See
72 P.S. § 4722 et seq.
[Ord. 60-1978 § 1, passed 11-5-1978; Ord. 57-2007, passed 11-21-2007; Ord. 35-2012, passed 10-3-2012; Ord. 37-2019, passed 6-19-2019]
As used in this article, certain terms are defined as follows:
All property (including industrial, commercial, business,
and residential) within the City of Erie.
Repair, construction or reconstruction, including alterations
or additions, having the effect of rehabilitating property in a deteriorating
area, so that it becomes habitable or attains higher standards of
safety, health, economic use or amenity, or is brought into compliance
with laws, ordinances or regulations governing such standards. Ordinary
upkeep and maintenance shall not be deemed an improvement.
The building or erection of any industrial, commercial, business,
or residential structure upon vacant land or land specifically prepared
to receive such structures.
[Ord. 60-1978 § 2, passed 11-15-1978; Ord. 35-2012, passed 10-3-2012; Ord. 37-2019, passed 6-19-2019]
There is hereby exempted from all property taxation the assessed
valuation of:
(a)
Improvement to all properties in the City of Erie where, on or before
July 31, 2024, the applicant/property owner submits an application
for tax exemption to the City at the time the applicant/property owner
secures the building permit.
(b)
New construction built in the City of Erie where, on or before July
31, 2024, the applicant/property owner submits an application for
tax exemption to the City at the time the applicant/property owner
secures the building permit.
[Ord. 57-2007, passed 11-21-2007; Ord. 35-2012, passed 10-3-2012; Ord. 37-2019, passed 6-19-2019]
(a)
The exemption from real property taxes shall be limited to:
(b)
In order to be eligible for the exemption, the applicant/property
owner must, on or before July 31, 2024, submit an application for
tax exemption to the City at the time the applicant/property owner
secures the building permit;
(c)
In order to be eligible for the exemption, the applicant/property
owner must be current on all real estate taxes owed on all properties
he/she/it owns in the County of Erie;
(d)
In all cases, the exemption from taxes should be limited to that
portion of the additional assessment attributable to the improvement
or new construction, as the case may be, and for which a separate
assessment has been made by the County Bureau of Assessment and for
which an exemption has been separately requested. No tax exemption
shall be granted if the property owner does not secure the necessary
and proper permits prior to improving the property. No tax exemption
shall be granted if the improvement or new construction as completed
does not comply with the minimum standards of the applicable construction
codes; and
(e)
In any case after the effective date of this section where property
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 real property taxation authorized by this article shall be limited
to that portion of new assessment attributable to the actual cost
of improvements or construction that is in excess of the original
assessment that existed prior to damage, destruction or demolition
of the property. In the event that the property has been fully demolished
by demolition permit and has remained vacant of any structure after
the expiration of one year from the issue of the permit, then the
assessed value of the demolished improvements shall thereafter not
be subject to taxation.
[Ord. 60-1978 § 4, passed 11-15-1978; Ord. 35-2012, passed 10-3-2012; Ord. 37-2019, passed 6-19-2019]
(a)
The schedules for real estate taxes to be exempted shall be as follows:
(1)
New construction and improvements made to all industrial, commercial
and business properties in the City of Erie shall be eligible for
an exemption of real property taxes pursuant to the following schedule:
|
Year
|
Exemption Percentage
|
|---|---|
|
1
|
100%
|
|
2
|
100%
|
|
3
|
100%
|
|
4
|
100%
|
|
5
|
100%
|
|
6
|
100%
|
|
7
|
100%
|
|
8
|
100%
|
|
9
|
100%
|
|
10
|
100%
|
(2)
New construction and improvements made to all residential properties
in the City of Erie shall be eligible for an exemption of real property
taxes pursuant to the following schedule:
|
Year
|
Exemption Percentage
|
|---|---|
|
1
|
100%
|
|
2
|
100%
|
|
3
|
100%
|
|
4
|
100%
|
|
5
|
100%
|
|
6
|
100%
|
|
7
|
100%
|
|
8
|
100%
|
|
9
|
100%
|
|
10
|
100%
|
(b)
The exemption from taxes granted under this article shall be upon
the property and shall not terminate upon the sale or exchange of
the property.
(c)
If an eligible property is granted a tax exemption pursuant to this
article, the improvement/new construction shall not, during the exemption,
be considered as a factor in assessing other properties.
[Ord. 60-1978 § 5, passed 11-15-1978; Ord. 99-1979 § 2, passed 11-14-1979; Ord. 57-2007, passed 11-21-2007; Ord. 37-2019, passed
6-19-2019]
(a)
Any person or entity desiring tax exemption pursuant to this article
must apply to the City at the time a building permit is secured for
construction of the improvement or new construction, as the case may
be. The application must be in writing upon forms specified by the
City and provide, at a minimum, the following:
(1)
The date of application for the building permit for such improvement/new
construction;
(2)
The location of the property to be improved/newly constructed;
(3)
The nature of the property to be improved/newly constructed;
(4)
The type of improvements/new construction (industrial, commercial,
business or residential);
(5)
The summary of the plan of the improvements/new construction;
(6)
The cost of the improvements/new construction;
(7)
Whether the property has been condemned by any governmental
body for noncompliance to laws or ordinances;
(8)
Proof that the applicant/property owner is current on all real
estate taxes owed on all properties he/she/it owns in the County of
Erie; and
(b)
There shall be on the form application for a building permit the
following notice:
|
"Notice to Taxpayer"
|
|
By Ordinance No. 60-1978, as amended, you may be entitled to
exemption from tax on your contemplated new construction or improvement
by reassessment.
|
|
An application for exemption may be secured from the Building
Inspector or other properly designated official and must be filled
out at the time the building permit is secured.
|
(c)
Applicants must pay a one-time application fee at the time of submission
of the exemption application. This fee shall be as follows:
|
Nature of Exemption
|
Application Fee
| |
|---|---|---|
|
1.
|
Residential improvements
|
$25
|
|
2.
|
Residential new construction
|
$25
|
|
3.
|
Industrial, commercial, business improvements
|
$100
|
|
4.
|
Industrial, commercial, business new construction
|
$100
|
(d)
A copy of the exemption application and proof of payment of any application
fee shall be forwarded to the County Bureau of Assessment by the Building
Inspector's Office. The Bureau shall process the application
and shall, thereafter, confirm that the improvements/new construction
comply with all applicable Building and Housing Codes. The Treasurer
shall keep a separate list of all such exempted properties, and upon
receipt of the assessments for each property from the Bureau, the
Treasurer shall see to it that each such exempted property is credited
with its proper exemption as against the County assessment figure.
[Added by Ord. 37-2019, passed 6-19-2019]
(a)
No later than October 1, 2021, the County Assessment Office shall
provide to the City, county and school district a report containing,
at a minimum, the following:
(1)
The total number of building permits applied for that are LERTA/IDRPA
eligible between the effective date of this article and July 31, 2021;
(2)
The total estimated assessed value of all new construction anticipated
on building permits secured between the effective date of this article
and July 31, 2021, as if the construction is completed (the "value
of total new development"); and
(3)
Any other information the County Assessment Office would deem
necessary to assist the taxing bodies in determining the effect on
the anticipated assessed value of property within the City as a result
of this tax abatement.
(b)
In the event the value of total new development is less than $20,000,000,
the taxing bodies shall convene a joint committee meeting to consider
repealing this article due to the failure to attract a necessary minimum
level of development.
(1)
In the event this article is repealed at any time, and for any
reason, any tax abatements applied for prior to adoption of a repealer
shall be honored so long as the applications meet the requirements
as they existed on the date of application.
[1]
Editor’s Note: Former Section 381.06, Exclusion, was
repealed by Ord. 35-2012, passed 10-3-2012.
[Added by Ord. 37-2019, passed 6-19-2019[1]]
Any applicant/property owner seeking tax exemption under this
article must submit an application for tax exemption to the City at
the time the applicant/property owner secures the building permit.
The application must be submitted on or before the 31st day of July,
2024. Eligibility for tax exemption under this article shall expire
on the 31st day of July, 2024.[2]
