[Adopted 4-4-2022 by Ord. No. 04042022-01]
As used in this article, the following words and phrases shall
have the meaning set forth below:
Repair, construction, or reconstruction, including alterations
and additions, having the effect of rehabilitating a building with
a minimum actual cost of the improvement being $75,000, verified by
a PA registered design professional. The purpose of the improvement
is for the following: the building becomes habitable or attains higher
standards of safety, health, economic use, or amenity; it is adaptively
reused; or is brought into compliance with laws, ordinances, or regulations
governing such standards; or is new construction in the LERTA designated
area.
Refers to the boundaries of the Borough of Bellefonte.
Any industrial, commercial, nonresidential use building,
or other business property located in the LERTA designated area.
Mixed-use (commercial and residential buildings); apartment
houses with three or more units; condominium buildings with four or
more units.
The entire area within the boundaries of the Borough of Bellefonte
is hereby designated as the LERTA area subject to exclusions. Properties/uses
specifically excluded from the LERTA program are single-family, duplexes,
short-term rental units, and bed-and-breakfast establishments.
A.
The properties must be used or adaptively reused in compliance with
current permitted uses and cannot be demolished.
B.
The actual cost of the new construction or improvements to a building
to qualify for the exemption must be in excess of $75,000 in order
for the property to be eligible for the LERTA tax abatement.
C.
Ordinary upkeep and maintenance (painting, roof replacement, landscaping,
deteriorated materials replacement) shall not be deemed an improvement.
If this work is included in a project, it shall not be counted toward
meeting the minimum investment for program eligibility.
D.
In all cases, the exemption from taxes shall 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 Board of Assessment. No tax exemption
shall be granted if the property owner does not secure the necessary
and proper permits prior to improving the property, including HARB
certificate of appropriateness approval (if applicable), zoning, building
codes, and Borough Council (if applicable). No tax exemption shall
be granted if the property, as completed, does not comply with the
minimum standards of all applicable Bellefonte Borough ordinances,
zoning, and building codes.
E.
Should there have been any reduction to the assessed value to the
property within the two years' prior to the application date
for exemption, the application shall be denied.
F.
The new assessment value will not be applied to the property until
occupancy of the building is granted in accordance with applicable
building codes or a fully signed and completed building permit copy
is received.
G.
The exemption from taxes hereunder shall be forfeited by the applicant
and/or any subsequent owner of the real estate for failure to pay
nonexempt real estate taxes by their due date that may be paid without
penalty. Upon receipt of notice of nonpayment of nonexempt real estate
taxes, the Borough Manager shall direct the County Assessment Office,
the School District Business Office and the Borough Finance Department
to discontinue the exemption.
H.
In any case, after the effective date of this article, where a property
in the LERTA program property is damaged or destroyed, and where the
assessed valuation of the property affected has been reduced as a
result of said damage, the exemption from real property taxation authorized
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.
A.
For the 10 years immediately following the year in which the LERTA
application is approved, the following real estate tax exemption schedule
shall be in effect:
|
Length
|
Portion Exemption
|
|---|---|
|
First Year
|
100%
|
|
Second Year
|
90%
|
|
Third Year
|
80%
|
|
Fourth Year
|
70%
|
|
Fifth Year
|
60%
|
|
Sixth Year
|
50%
|
|
Seventh Year
|
40%
|
|
Eighth Year
|
30%
|
|
Ninth Year
|
20%
|
|
10th Year
|
10%
|
After the 10th year, the exemption shall terminate.
B.
The exemption from taxes granted under this article shall be upon
the property exempted and shall not terminate upon the sale or exchange
of the property.
C.
If an eligible property is granted tax exemption pursuant to this
article, the exemption shall not, during the exemption period, be
considered as a factor in assessing other properties.
D.
If the use of the property at the time the exemption is granted is
modified, terminated or changed during the ten-year exemption period
in any way which would have affected the exemption if the property
had been so used when the exemption was granted, then, at the election
of the Borough Council, the exemption shall terminate as of the date
the use was modified or terminated if the Council determines that
continuation of the exemption would be inconsistent with the purposes
of this article.
A.
Any person or entity desiring tax exemption pursuant to the LERTA
program must apply to the Borough of Bellefonte prior to or at the
time of obtaining a building permit for new construction or improvement.
Applicants shall also provide a copy of the exemption request to the
Centre County Assessment Office on the same day it is submitted to
the Borough. Applicants shall also file a copy of the exemption request
with the Business Office of the Bellefonte Area School District.
B.
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.
C.
The application must be in writing, utilizing the LERTA program application
form, setting forth the following information:
(1)
The date the building permit was issued for said improvement.
(2)
The location of the property.
(3)
The current use(s) and proposed use(s) of the property.
(4)
The type of improvements or new construction.
(5)
The summary of the plan of the improvements or new construction.
(6)
The actual cost of the improvements or new construction is verified
by a Pennsylvania registered design professional. Improvement costs
must exceed $75,000 with ordinary maintenance expenses not being counted
in the $75,000 minimum.
(7)
Whether or not the property has been condemned or cited by any governmental
body for noncompliance with laws, regulations, and/or ordinances.
(8)
The property has been inspected and examined by a Pennsylvania registered
design professional acting on behalf of the Borough. The cost of such
inspection shall be reimbursed to the Borough by the applicant, regardless
of whether or not the application is approved.
(9)
Such additional information as the Borough may require.
D.
The cost of improvements or new construction to be exempted.
E.
Each applicant for and receiving an exemption under the LERTA program
agrees to, upon completion of the ten-year exemption schedule, not
to take any appeals for reassessment for a period of an additional
five years unless the property is reassessed by the County of Centre
during that five-year period.
F.
No person or entity, or such person's or entity's subsidiaries,
affiliates or other associated holdings, will be eligible for exemption
under the LERTA program unless all property taxes are current, there
are no outstanding municipal liens against the property, and all fees
for municipal services (including, but not limited to, water, sewer
and trash services) are current for all properties such person's
or entity's, or such person's or entity's subsidiaries,
affiliates or other associated holdings owned in the Borough.
G.
No assessment appeal reducing the property assessment has been granted
within two years' prior to the filing of a LERTA application.
H.
A copy of the exemption request will be forwarded to the County Board
of Assessment Appeals by the Borough Manager. Within 60 days, the
Board will, after completion of construction, assess separately the
improvement and calculate the amounts of the assessment eligible for
tax exemption in accordance with the limits established by the LERTA
program and notify the taxpayer and the local taxing authorities of
the reassessment and amounts of the assessment eligible for exemption.
This reassessment is required by the application of the LERTA abatement,
and any applicant applying for the abatement explicitly agrees that
it does not constitute a spot reassessment. Reassessment will be applied
to the improvement that has been made as part of the LERTA application.
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.
The Borough may, by ordinance enacted from time to time, extend
the time for filing an application from exemption from Borough real
estate taxes. However, in no event shall anyone's extension period
exceed five years.
The exemption from Borough real property taxes provided for
in this article shall be forfeited by the applicant and/or any subsequent
owner of the property and such exemption shall be revoked by the Borough
upon the occurrence of any of the following:
A.
The failure to pay in full 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 property
taxes, the Borough Treasurer shall immediately terminate the exemption.
B.
The failure to pay when due any amount due and owing to the Borough.
Upon receipt of notice of nonpayment of any such amount, the Borough
Treasurer shall immediately terminate the exemption.
C.
The failure to obtain and pay in full all fees for all necessary
and proper permits, licenses, and certificates prior to commencement
of construction of the improvements to, or occupancy of, the property.
D.
The failure to comply with the minimum standards established by all
applicable laws, ordinances, codes, rules, and regulations.
E.
The failure to comply with the provisions of this article.
Bellefonte Borough will accept a maximum of five applications
per year for the entire LERTA designated area. The date of application
approval will be used to determine when the annual cap has been reached.
The Borough may, by resolution and concurrence with Bellefonte Area
School District and Centre County Government, increase the number
of LERTA applications accepted on an annual basis.
If any provision of this article shall be determined to be unlawful,
invalid, void, or unenforceable, then that provision shall be considered
severable from the remaining provisions of this article, which shall
be in full force and effect.
This article shall become effective upon adoption by the Bellefonte
Area School District and the Centre County Board of Commissioners
of a resolution in accordance with the terms of this article. For
LERTA program applications, a period of retroactivity starting on
November 1, 2021, is allowed for a property owner who has obtained
a building permit and has not started the improvement. The applicant
must otherwise meet all other program eligibility requirements.
No amendment to this article shall be effective unless consented
to by resolution or ordinance at each local taxing authority which
has consented to be bound by the terms of this article.
