[Adopted 12-10-2024 by Ord. No. 817[1]]
[1]
Editor's Note: This ordinance also superseded former Art. VI, Certain Deteriorated Industrial, Commercial, and Other Business Property Tax Exemption, adopted 10-10-2023 by Ord. No. 805.
As used in this article, the following words and phrases have the meaning set forth below:
DETERIORATED PROPERTY
Means any industrial, commercial, or business property owned by an individual, association, or corporation, located in a deteriorating area or any such property which has been the subject of an order by the Borough of Derry, Westmoreland County, Pennsylvania, or other government agency requiring the unit to be vacated, condemned or demolished by means of noncompliance with laws, ordinances or regulations.
IMPROVEMENT
Means repair, construction or reconstruction, including alterations or additions, having the effect of rehabilitating a deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity or is brought into compliance with laws, ordinances or regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an improvement.
LOCAL GOVERNING BODY
Means the Borough of Derry, Westmoreland County, Pennsylvania.
LOCAL TAXING AUTHORITY
Means the Borough of Derry, Westmoreland County, Pennsylvania.
There is hereby exempt from real estate property taxation the assessed value of improvements to deteriorated industrial, commercial or other business property in the amounts and in accordance with the provisions and limitations within the boundaries of a deteriorated area or areas as determined by the Borough of Derry, Westmoreland County, Pennsylvania, in accordance with the Act.[1]
[1]
Editor's Note: See 72 P.S. § 4722 et seq.
The exemption from taxes created hereunder shall be limited to the additional assessment valuation attributable to 100% of the eligible assessment for the first year; for the second year, 80% of the eligible assessment shall be exempted; for the third year, 60% of the eligible assessment shall be exempted; after the third year, the exemption shall terminate.
The procedure for obtaining exemption under this article shall be in accordance with 72 P.S. § 4727(a). In addition, any person, association or corporation applying for tax exemption pursuant to this article, shall supply the Borough of Derry's Zoning Officer with a statement projecting the number of new jobs created or existing jobs retained as a result of the repair, construction, or reconstruction of the deteriorated property.
The provisions of Act No. 76 of the General Assembly of the General Assembly of the Commonwealth of Pennsylvania, not herein enumerated, shall, nevertheless, be incorporated as part of this article by reference. If any sentence, clause, of sections or parts of this article is, for any reason, found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall not affect or impair any of the remaining provisions, sentences, clauses or sections, or parts of this article. It is hereby declared as the intent of the Borough of Derry, Westmoreland County, Pennsylvania, that this article would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or any part thereof had not been included herein.
There shall be placed on the form application for the building and alterations permits the following notice:
NOTICE TO TAXPAYERS
Under the provisions of Borough of Derry Ordinance No. 786, you may be entitled to a property tax exemption on your contemplated alteration or new construction. An application for exemption must be secured from the Zoning Officer and must be filed with the Borough of Derry at the time building or alteration permit is secured.
The request for exemption must set forth the following information:
A. 
The date the building permit or alteration permit was issued for said improvements.
B. 
The type of improvement.
C. 
The summary of the plan of improvement.
D. 
The cost of the improvement(s).
E. 
Any of all such additional information required.
F. 
The anticipated number of new employees that will result from the improvement if applicable.
G. 
A summary of the anticipated financial impact to the Borough of Derry.
The thirty-six-month period for tax exemption shall commence during the month when the Westmoreland County Board of Assessment Appeals places an improvement on the tax roll.
No improvement shall be exempt from real estate taxation unless the owner of the subject real estate shall have first acquired a zoning and building permit and submitted a completed application for exemption on a form available from the Borough Secretary of the Borough of Derry.
This article shall be effective for all applications for exemption properly completed and filed with the Borough Secretary of the Borough of Derry and the Tax Collector of the Borough of Derry effective January 1, 2025, through December 31, 2027, and any improvement completed pursuant to a timely filed application for exemption shall be exempt from real estate taxation for the full period of 36 months even though the improvement may not be completed prior to December 31, 2027, or the thirty-six-month period may extend beyond December 31, 2027.
The exemption from taxes hereunder shall be forfeited by the applicant and/or subsequent owner of the real estate for failure to pay nonexempt real estate taxes by their due date, i.e., the last date upon which taxes may be paid without penalty. Upon receipt of notice of nonpayment on nonexempt real estate taxes, the Borough's designated Tax Collector shall communicate with the Borough of Derry and the secretary shall direct County Tax Assessment Office to discontinue the exemption provided for hereunder.
This article and the exemptions granted herein shall not be available to properties which are, according to the Borough of Derry's Council, nonconforming uses.