[Adopted 12-10-2018 by Ord. No. 908[1]]
[1]
Editor's Note: This ordinance also superseded former
Art. IX, Keystone Opportunity Expansion Zone Exemption, adopted 9-18-2018
by Ord. No. 903.
A.
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
B.
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
C.
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
D.
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
E.
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
F.
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.[1]
[1]
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:
A.
100% for the real property tax on the assessed value of improvements
made to the qualified business' property within the KOEZ; and
B.
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.
A.
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.
B.
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.[1]
[1]
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.
