[Adopted 8-10-2020 by Ord. No. 1555]
A.
Ephrata Borough is a local taxing authority, authorized by the Local
Economic Revitalization Tax Assistance Act, the Act of December 1,
1977, P.L. 237, No. 76, 72 P.S. § 4722 et seq., to provide
tax exemption for new construction in deteriorated areas of economically
depressed communities and for improvements to certain deteriorated
industrial, commercial and other business properties to enable use
of those properties for commercial, industrial and other business
purposes. The Council of the Borough of Ephrata held a public hearing
on July 13, 2020, for the purpose of determining the boundaries of
deteriorated areas within the Borough.
B.
Many of the existing buildings within the LERTA district established
by this article are more than 50 years old, and some of the buildings
are unsanitary or unsafe. Many lots have lot coverage exceeding the
maximum permitted under the Zoning Ordinance.[1] Many lots lack acceptable off-street and/or on-street
parking which causes added expense to property owners and persons
working and/or living in the district. All of the above conditions
are symptomatic of an underlying problem, which is the financial burden
to property owners of added expense in the development and operation
of the real estate. It is the goal of the Council to stimulate new
investment in properties in the Borough and to stimulate owner reinvestment
in those properties. The Council has determined that it is in the
best interest of all residents and property owners that the Borough's
Main Street corridor and other properties identified as part of the
LERTA district be revitalized into a healthy economic area.
The following words and phrases when used in this article shall
have the following meaning:
The assessment placed on real property by the Lancaster County
assessor upon which all real estate taxes shall be calculated.
The Borough of Ephrata, Lancaster County, Pennsylvania.
Any use within the definition of "commercial use" in Chapter 319, Zoning. A structure containing only dwelling units is not a commercial use.
The governing body formed and assembled as the Council of
the Borough of Ephrata, Lancaster County, Pennsylvania.
An area meeting the requirements of the Local Economic Revitalization
Tax Assistance Act, 72 P.S. § 4722 et seq.
Any industrial, commercial or other business property owned
by an individual, association, or corporation, and located in a deteriorating
area, as hereinafter provided, or any such property which has been
the subject of an order by a government agency requiring the unit
to be vacated, condemned or demolished by reason of noncompliance
with laws, ordinance or regulations.
A separately assessed lot which has an assessed valuation
for building and improvements greater than $0 on the effective date
of this article.
Repair, construction or reconstruction including alterations
and additions having the effect of rehabilitating a deteriorated property
so that it becomes usable for commercial, industrial or other business
purposes or attains higher standards of safety, health, economic use
or amenity for commercial, industrial or other business purposes,
or is brought into compliance with laws, ordinances, regulations governing
such standards for properties used for commercial, industrial or other
business purposes. Ordinary upkeep and maintenance shall not be deemed
an improvement. Repair, construction or reconstruction of a property
for residential use shall not be considered an improvement under this
article.
The Local Economic Revitalization Tax Assistance Act, the
Act of December 1, 1977, P.L. 237, No. 76, 72 P.S. § 4722
et seq.
The Borough, the School District, and Lancaster County.
The development of a single building with either commercial
or industrial uses on the first floor and possibly on other floors
of the building with dwelling units on upper floors. A mixed-use building
cannot have any dwelling units on the first (street level) floor.
Construction on a deteriorated property to enable its use
for commercial, industrial or mixed use purposes. Construction of
structures containing only dwelling units shall not be considered
new construction for the purposes of this article.
The Ephrata Area School District.
The Council determines that the lots identified on Attachment
1, attached hereto and incorporated here,[1] shall be the area which contains and consists of deteriorated
properties which are eligible for tax exemption under this article,
so long as such properties meet the definition herein for "deteriorated
property." Additional eligible areas may be included from time to
time by ordinance of the Council.
[1]
Editor's Note: Said Attachment is included as an attachment to this chapter.
A.
The amount to be exempted from Borough real estate taxes shall be
limited to that portion of the additional assessed valuation attributable
to the actual cost of new construction or improvements to deteriorated
property in accordance with the exemption schedule established by
this article.
B.
The actual cost of the new construction or improvements to qualify
for the exemption must equal or exceed $0.
C.
The exemption from Borough real estate taxes shall be limited to
the assessed valuation attributable to the new construction or improvement
for which an exemption has been requested in the manner set forth
in this article and for which a separate assessment has been made
by the Lancaster County Assessor.
The schedule of the Borough real estate taxes to be exempted
shall be in accordance with the below portion of the assessed valuation
attributable to new construction or improvements to be exempted each
year.
|
For Improved/Developed Properties:
| |
|---|---|
|
Length
(year)
|
Portion
(percent)
|
|
First
|
100
|
|
Second
|
90
|
|
Third
|
80
|
|
Fourth
|
70
|
|
Fifth
|
60
|
|
Sixth
|
50
|
|
Seventh
|
40
|
|
Eighth
|
30
|
|
Ninth
|
20
|
|
10th
|
10
|
A.
If an eligible property is granted a Borough tax exemption pursuant
to this article, the improvement shall not, during the exemption period,
be considered as a factor in assessing other properties.
B.
The exemption from Borough taxes granted under this article shall
be upon the property and shall not terminate upon the sale or exchange
of the property.
C.
In the event there is a county-wide assessment of all real property
located within Lancaster County, the tax exemption granted hereunder
shall remain in effect in accordance with the terms of this article
notwithstanding any such reassessment.
A.
Any person desiring tax exemption from Borough real estate taxes
under this article shall notify the Manager and Treasurer of the Borough,
as well as the Business Manager of the School District, in writing
on a form provided to the applicant at the time he/she secures a building
permit for the new construction or improvement. A copy of the exemption
request shall be forwarded to the Lancaster County Assessment Office.
The Lancaster County Assessor shall, upon notice by the applicant
and after completion of the new construction or improvement, assess
separately the new construction or improvement and calculate the amount
of the assessment eligible for tax exemption in accordance with the
limits established by this article and shall notify the taxpayer,
the Borough and the School District of the reassessment and the amount
of the assessment eligible for the exemption. Appeals from the reassessment
and the amount eligible for the exemption may be taken by the taxpayer
or the local taxing authority as provided by law.
B.
The cost of the new construction or improvements to be exempted from
Borough real estate taxes under this article and the schedule of Borough
real estate taxes exempted existing at the time of initial request
for tax exemption shall be applicable to that exemption request, and
subsequent amendment to this article, if any, shall not apply to the
adoption of such amendment.
An application for exemption from Borough real estate taxes
may be made at any time within five years from the effective date
of this article. All qualified applications under this article are
eligible for the entire ten- or five-year exemption schedule as applicable.
The Borough, may by ordinance enacted from time to time, extend
the time for filing an application for exemption from Borough real
estate taxes. However, in no event shall any one extension period
exceed five years.
The exemption from Borough real estate taxes provided for herein
shall be forfeited by the taxpayer and/or any subsequent owner of
the real estate for the failure to pay 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
estate taxes, the Borough Treasurer shall discontinue the LERTA exemption.
