As used in this article, the following words and phrases shall have the meaning set forth below:
DETERIORATED PROPERTY
Any industrial, commercial or other business property owned by an individual association or corporation, and located in an investment opportunity area, as hereinafter provided, or any such property which has been subject of an order by a government agency requiring the property to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.
IMPROVEMENT
Repair, construction or reconstruction, including alterations and 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. No residential homes, apartments or other living establishments will be included.
INVESTMENT OPPORTUNITY AREAS
Refers to all property within the boundaries of the Borough of Kane.
LOCAL TAXING AUTHORITY
The Borough of Kane, Kane Area School District, the County of McKean, or any other governmental entity having the authority to levy real property taxes within the Borough of Kane.
MUNICIPAL GOVERNING BODY
The Borough of Kane.
A. 
The exemption from real property taxes shall be limited:
(1) 
To the exemption schedule as established within this article;
(2) 
To that portion of the additional assessment attributable to the actual cost of improvements to the deteriorated property;
(3) 
To the assessment valuation attributable to the cost of construction of a new industrial, commercial or other business unit.
B. 
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 McKean County Board of Assessment Appeal, and for which an exemption has been separately requested.
C. 
No tax exemption shall be granted if the property owner does not secure the necessary and proper permits prior to improving the property.
D. 
In any case after the effective date of this article when deteriorated property is damaged, destroyed or demolished, by any cause or for any reason, and the assessed valuation of the property affected has been reduced as a result of said damage, destruction or demolition, the exemption from real property taxation authorized by this article 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 assessments that existed prior to the damage, destruction or demolition of the property.
A. 
For the five years immediately following the year in which the improvement becomes assessable, the following real estate tax exemption schedule shall be in effect:
[Amended 10-12-2015 by Ord. No. A-1025]
Length
Portion Exempt
First year
100%
Second year
75%
Third year
50%
Fourth year
25%
Fifth year
10%
After the fifth 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 improvement 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 five 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 of 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 desiring tax exemption pursuant to this article shall apply to the Borough of Kane at the time a building permit is secured for construction of the improvement. The application shall be in writing upon forms specified by the Borough setting forth the following information.
(1) 
The date the building permit was issued for said improvements.
(2) 
The location of the property to be improved.
(3) 
The nature of the property to be improved (industrial, commercial, etc.)
(4) 
The type of improvement.
(5) 
The summary of the plan of the improvement.
(6) 
The cost of the improvement.
(7) 
The property has bean inspected and verified by the Borough Manager or his agent.
(8) 
Such additional information as the Borough may require.
B. 
A copy of the exemption requests shall be forwarded to the County Board of Assessment by the Borough Manager. The Board shall determine whether the exemption shall be granted and shall assess separately the improvements and calculate the amounts of the assessment eligible for the tax exemption in accordance with the limits established by this article and notify the taxpayer and local taxing authorities of the reassessment and amounts of the assessment eligible for tax exemption. In the case of new construction, the Board shall assess separately the unit and the land upon which the new construction stands and shall otherwise perform its duties as above provided for construction of improvements to properties.
C. 
The cost of improvements to be exempted and the schedule of taxes exempted, existing at the time of the initial request for tax exemption, shall be applicable to that exemption request, and subsequent amendment to this article, if any, shall not apply to requests initiated prior to their adoption.
D. 
Appeals from the reassessment and the amount eligible for the exemption may be taken by the borough or by the taxpayer as provided by law.
This article shall become effective upon adoption by the Kane Area School District and the McKean County Board of Commissioners of a resolution exempting from real property taxation properties in accordance with the terms of this article.
No amendment to this article shall be effective unless consented to by resolution or ordinance of each local taxing authority which has consented to be bound by the terms of this article.
This article shall automatically terminate five years following the effective date hereof; providing, however, that any taxpayer who has received or applied for the exemption granted by this article prior to the expiration date herein provided shall, if said exemption is granted, be entitled to the full exemption authorized herein. This section shall not prevent the Borough Council, however, from repealing this article or any section thereof before five years upon proper action of Council.
[1]
Editor's Note: Currently, the LERTA Ordinance is renewed by resolution every five years.