Chapter
414, Art.
II, Borough of Indiana Local Economic Revitalization and Tax Assistance Program, is the policy of the Borough of Indiana to encourage new development, redevelopment and a revitalization of the real properties located within the Borough of Indiana, improving and contributing to local and regional economic redevelopment.
As used in this article, the following terms shall have the
meanings indicated:
ASSESSED VALUATION
The assessment on real property by Indiana County Assessor
upon which real estate taxes are collected.
IMPROVEMENT(S)
Repair, construction, or reconstruction, including alterations
and additions increasing the property valuation. Improvement(s) to
real property must amount to more than $20,000 of construction expense.
Ordinary maintenance and upkeep are not considered improvements.
NEW CONSTRUCTION
Building or improvement of a structure located within the
Borough of Indiana after the LERTA application permit has been approved.
In accordance with this article, the assessed valuation of new
construction or improvements may be exempted from property taxation
in accordance with the provisions and limitation described in this
section.
A. The exemption from real property taxation shall be limited to that
portion of the assessment which is directly attributed to the cost
of the new construction or improvements after completion and approval
of a LERTA permit application.
B. After the effective date of this article, if a structure benefiting
from this tax exemption is damaged, destroyed or demolished under
any circumstance, then the assessed value of the property shall be
reduced as a result of that damage and any exemption from real property
taxation shall be abated and proportioned relative to the percentage
of damage, destruction or demolition.
C. Tax exemption schedule shall apply immediately following the tax
year in which the eligible new construction or improvements have been
completed.
D. The new construction or improvements to properties granted tax exemption
under this LERTA shall not be a factor when establishing assessment
values for other properties or for a qualified property at the time
of sale.
E. The actual cost of the new construction or improvements to qualify
for exemption must be in excess of $20,000.
F. The exemption from local 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 without penalty. Upon
receipt of the notice of nonpayment of nonexempt real estate taxes,
the Borough shall discontinue the LERTA exemption.
Property owners desiring tax exemption shall obtain a LERTA
permit application from the Borough of Indiana Code Enforcement Department
or Zoning Department and shall submit said permit when securing a
zoning or construction permit before commencing with construction.
Copies of this LERTA permit application shall be provided to all taxing
bodies (Borough of Indiana, Indiana County, Indiana Area School District).
The application shall document current assessed property valuation,
proposed property valuation, anticipated start date of construction,
anticipated completion date of construction and a verification that
the property is eligible for tax exemption. Any subsequent amendment
to this article shall not impact those exemption requests filed prior
to the enactment of said amendment.
The Local Economic Revitalization Tax Assistance Ordinance shall
not apply where the property owner fails to obtain the necessary permits
prior to construction; does not comply with the minimum standards
of the laws, resolutions, and regulations of the Borough of Indiana,
Indiana Area School District, or Indiana County; does not use the
property according to the lawful ordinances, regulations and codes
of the Borough of Indiana; or the property owner does not comply with
the provisions of this article as adopted.