City of Erie, PA
Erie County
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Table of Contents
Table of Contents
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:
DETERIORATING AREA
All property (including industrial, commercial, business, and residential) within the City of Erie.
IMPROVEMENT
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.
NEW CONSTRUCTION
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.
The exemption authorized by Subsections (a) and (b) hereof shall be in the amounts and in accordance with the provisions and limitations provided in Sections 381.03 to 381.05.
[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:
(1) 
The additional assessment attributable to new construction and improvements to all industrial, commercial and business properties in the City of Erie; and
(2) 
The additional assessment attributable to new construction and improvements made to all residential properties in the City of Erie.
(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
(9) 
Payment of the applicable application fee identified below in Section 381.05(c).
(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]
[1]
Editor’s Note: This ordinance also repealed former Section 381.07, Appeals Board (Ord. 30-2008, passed 6-18-2008).
[2]
Editor's Note: Former Section 381.08, Expiration (Ord. 35-2012, passed 10-3-2012), was repealed by Ord. 37-2019, passed 6-19-2019.