[Adopted 12-10-2018 by Ord. No. 908]
Editor's Note: This ordinance also superseded former Art. IX, Keystone Opportunity Expansion Zone Exemption, adopted 9-18-2018 by Ord. No. 903.
The Borough of Columbia, Lancaster County, Pennsylvania, recognizes the need to encourage investment in defined geographical areas within the Borough of Columbia that are experiencing distress characterized by one or more of the following: high unemployment, low investment of new capital, blighted conditions, underutilized, obsolete or abandoned industrial, commercial and residential structures, or deteriorated tax base; and
The Pennsylvania Keystone Opportunity Zone Act, Act of October 6, 1998, P.L. 705, No. 92, 73 P.S. §§ 820.101 through 820.1309 and 72 P.S. § 8911-D, as amended, including amendment by Act 43 of 2017 (hereinafter referred to as the "Act"), authorizes political subdivisions such as the Borough of Columbia to apply to the Pennsylvania Department of Community and Economic Development ("DCED") for designation of an area within the political subdivision's boundaries as a Keystone Opportunity Expansion Zone ("KOEZ"); and
As a precondition of such application, the political subdivision is required to adopt an ordinance which provides for exemptions, abatements, credits or deductions from certain local taxes within the designated and approved KOEZ; and
Approval of the benefits provided in the Act will result in improving the economic, physical, and social conditions within the proposed KOEZ by stimulating existing business employment, creating new employment and diminishing blight; and
It is expected that the increase in private- and public-sector investors will reverse the disinvestment and conditions of blight within the proposed KOEZ by the time of its termination; and
The proposed KOEZ within the Borough of Columbia is comprised of parcels of property which are deteriorated, underutilized or unoccupied.
The Borough of Columbia hereby designates the boundaries of the proposed Keystone Opportunity Expansion Zone (KOEZ) as those areas and parcels identified on Exhibit "A," set forth and attached hereto.
Editor's Note: Exhibit "A" is on file in the Borough offices.
In accordance with the Act, but without limiting requirements or provisions of the Act, commencing on January 1, 2019, and continuing for 10 years thereafter (to terminate on December 31, 2028) the following tax exemptions shall apply to qualified businesses defined by the Act within the KOEZ:
100% for the real property tax on the assessed value of improvements made to the qualified business' property within the KOEZ; and
To the extent that any such taxes are hereinafter enacted and levied by the Borough of Columbia, 100% of business gross receipt taxes for operations conducted by a qualified business within the expansion zone, 100% of business privilege taxes and business opportunity taxes, taxes on the earned income received by a resident of the expansion zone, taxes on the net profits of a qualified business attributable to business' activity conducted within the expansion zone, mercantile taxes attributable to business' activity conducted by a qualified business within the expansion zone, and sales and use taxes for purchases exclusively used and consumed by the qualified business in the expansion zone.
In accordance with the Act, exemptions shall only be available for qualified businesses that qualify for the same and comply with all provisions of the Act not only at the time of initial application but throughout the term of this article.
In accordance with the terms of the Act, no qualified business may claim or receive an exemption unless it is in full compliance with all state and all local laws, ordinances and resolutions, and with all state and local zoning, building and housing laws, ordinances or codes.
This article shall not provide exemption for any tax owed prior to January 1, 2019. Any and all roll-back taxes arising under Section 5490.6 of the Pennsylvania Farmland and Forestland Assessment Act, as amended (Act 319), 72 P.A. Stat. §§ 5490.1 through 5490.13 shall be due and owing upon the conversion of the real property within the KOEZ from agricultural to industrial use. The amount of such roll-back taxes shall be determined in accordance with 7 Pa. Code § 137b.89, and this article does not provide exemption from liability for payment of such roll-back taxes.
Qualified businesses may enter into an agreement for payment in lieu of taxes pursuant to which it agrees to pay 100% of the current base real property tax on the terms and conditions set forth in the agreement, the form and substance of which shall be substantially as set forth in Exhibit "B" hereto.
Editor's Note: Exhibit "B" is on file in the Borough offices.
This article shall be effective only should both of the following occur:
Assuming all conditions set forth above are met, the provisions of this article shall become effective on January 1, 2019, and shall terminate on December 31, 2028.
The provisions of the Act not herein enumerated are incorporated as part of this article by reference, and if any provision of this article is determined to be contrary to the Act, such provision shall be deemed eliminated, and the Act shall control.
In the event any provision, section, sentence, clause or part of this Ordinance shall be held to be invalid, such invalidity shall not affect or impair any of the remaining provisions, sections, sentences, clauses or parts of this Ordinance; it being the intent of the Borough of Columbia that the remainder of the Ordinance shall be and shall remain in full force and effect.