[Adopted as Article 383 of the Codified Ordinances; amended in its entirety 12-17-2019 by Ord. No. 20-2019]
As used in this article, the following
terms shall have the meanings indicated:
Any industrial, commercial or other business property owned
by an individual, association or corporation, and located in an investment
opportunity area, as hereinafter defined, 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, ordinances or regulations.
Any industrial, commercial, residential or other business
property owned by an individual, association, or corporation which
currently houses one or more of the following uses: residential, commercial,
cultural, light industrial, or other miscellaneous use; and is located
in an investment opportunity area, as hereinafter defined, 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, ordinances, or regulation.
A dwelling unit located in an investment opportunity area,
as hereinafter defined, or a dwelling unit which has been or upon
request is certified by a health, housing or building inspection agency
as unfit for human habitation for rent withholding, or other health
or welfare purposes, or has been the subject of an order by such an
agency requiring the unit to be vacated, condemned or demolished by
reason of noncompliance with laws, ordinances or regulations.
A house, double house or duplex, townhouse or row house,
apartment, condominium or any building intended for occupancy as living
quarters by an individual, a family or families or other groups of
persons, which living quarters contain a kitchen or other cooking
equipment for the exclusive use of the occupant or occupants.
Repair, construction or reconstruction, including alterations
and additions, having the effect of rehabilitating a deteriorated
property, either commercial or residential, so that its assessed value
increases more than $25,000, and one of the following: 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; or is new residential construction
in an investment opportunity area. Ordinary upkeep and maintenance
shall not be deemed an improvement.
The building or erection of dwelling units, as defined above,
upon vacant land or land specifically prepared to receive such structures.
A.
There is hereby exempted from all real
property taxation assessed by the City of Lancaster the assessed valuation
of:
(1)
Improvement to deteriorated property, commercial;
deteriorated property, mixed-use and/or deteriorated property, residential.
(2)
Improvement to any residential, commercial
or mixed-use properties, without regard to whether such properties
qualify as deteriorated property, commercial; deteriorated property,
mixed-use or deteriorated property, residential, provided said improvements
are constructed with an investment opportunity area.
(3)
New residential construction built in any
investment opportunity area.
A.
The exemption from real estate property
taxes assessed by the City of Lancaster shall be as follows:
(1)
To that portion of the additional assessment
attributable to the actual cost of improvement to deteriorated property,
commercial;
(2)
To that portion of the additional assessment
attributable to the actual cost of improvement to deteriorated property,
mixed-use;
(3)
To that portion of the additional assessment
attributable to the actual cost of improvement to deteriorated property,
residential;
(4)
To that portion of the additional assessment
attributable to the actual cost of improvement to any residential,
commercial or mixed-use properties, without regard to whether such
properties qualify as deteriorated property, commercial; deteriorated
property, mixed-use or deteriorated property, residential, provided
said improvements are constructed within an investment opportunity
area; and/or
(5)
To the assessment valuation attributable
to the actual cost of new residential construction within an investment
opportunity area.
B.
The date of improvement shall be the date
of issuance of the building permit, improvement record or other required
notification of construction.
C.
In all cases the exemption from taxes shall
be limited to that portion of the additional assessment attributable
to the improvement or new residential construction, as the case may
be, and for which a separate assessment has been made by the County
Board of Assessment Appeals and for which an exemption has been separately
requested. No tax exemptions shall be granted if the property owner
does not secure the necessary and proper permits prior to making an
improvement of the property. No tax exemption shall be granted if
the property as completed does not comply with the minimum standards
of the Housing and Building Codes of the City of Lancaster.
D.
In any case, after the effective date of
this article where deteriorated property, commercial; deteriorated
property, mixed-use or deteriorated property, residential 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 improvement or
residential construction that is in excess of the original assessment
that existed prior to damage, destruction or demolition of the property.
A.
The schedule of real estate taxes to be
exempted for improvement to deteriorated property, residential (excluding
new residential construction in an investment opportunity area) shall
be in accordance with the below portion of Improvement to be exempted
each year:
|
Length
|
Portion
|
|---|---|
|
1st year
|
100%
|
|
2nd year
|
90%
|
|
3rd year
|
80%
|
|
4th year
|
70%
|
|
5th year
|
60%
|
|
6th year
|
50%
|
|
7th year
|
40%
|
|
8th year
|
30%
|
|
9th year
|
20%
|
|
10th year
|
10%
|
(1)
After the 10th year the exemption shall
terminate.
B.
The schedule of real estate taxes to be
exempted for improvement to deteriorated property, commercial; deteriorated
property, mixed-use or property which was deteriorated property, commercial
or deteriorated property, residential at the time of application for
a building permit, but as a result of improvement will be converted
to a mixed-use property, combining residential and commercial uses,
shall be in accordance with the below portion of improvement to be
exempted each year:
|
Length
|
Portion
|
|---|---|
|
1st year
|
100%
|
|
2nd year
|
90%
|
|
3rd year
|
75%
|
|
4th year
|
60%
|
|
5th year
|
45%
|
|
6th year
|
30%
|
|
7th year
|
15%
|
(1)
After the seventh year the exemption shall
terminate.
C.
A property owner or developer building
new residential construction may choose at the time of application
for a building permit one of the following schedules of real estate
taxes to be exempted for new residential construction of dwelling
units in an investment opportunity area.
(1)
A schedule of real estate taxes to be exempted
in accordance with the below portion of new residential construction
of residential dwelling units to be exempted each year:
|
Length
|
Portion
|
|---|---|
|
1st year
|
100%
|
|
2nd year
|
90%
|
|
3rd year
|
75%
|
|
4th year
|
60%
|
|
5th year
|
45%
|
|
6th year
|
30%
|
|
7th year
|
15%
|
(2)
A schedule of real estate taxes to be exempted
in accordance with the below portion of new residential construction
of residential dwelling units to be exempted each year shall be based
upon the new residential construction achieving one or more levels
of certification under the International Construction Code 700-2008
National Green Building Standard. The City of Lancaster shall require
verification of the certification level achieved prior to obtaining
an exemption. To obtain a three-year exemption, all dwelling units
must achieve a bronze certification. To obtain a four-year exemption,
all dwelling units must achieve a silver certification. To obtain
a five-year exemption all dwelling units much achieve a gold certification.
|
Length
|
Portion
|
|---|---|
|
1st year
|
100%
|
|
2nd year
|
100%
|
|
3rd year
|
100%
|
|
4th year
|
100%
|
|
5th year
|
100%
|
(3)
Depending upon the Green Building Standard
certification achieved, the exemption shall terminate on the third,
fourth or fifth year.
D.
The exemption from taxes granted under
this article shall be upon the property and shall not terminate upon
the sale or exchange of the property.
E.
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, i.e., the last date upon which taxes may be paid without penalty.
Upon receipt of notice of nonpayment of nonexempt real estate taxes,
the Chief Building Code Official shall direct the City Treasurer to
discontinue the exemption provided for hereunder.
F.
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.
A.
Application.
(1)
Any person desiring tax exemption pursuant
to this article should apply to the City of Lancaster at the time
that a building permit is secured for construction of improvement
or new residential construction, as the case may be. The application
must be in writing upon forms specified by the City setting forth
the following information:
(a)
The date of the building permit was
issued for said improvement;
(b)
The location of the property to be
improved;
(c)
The nature of the property to be
improved;
(d)
The type of improvement (commercial,
mixed-use, or residential);
(e)
The summary of the plan of the improvement;
(f)
The cost of the improvement;
(g)
Whether the property has been condemned
by any governmental body for noncompliance with the laws or ordinances;
(h)
The property has been inspected and
verified by the Bureau of Code Compliance and Inspections, or its
successor, and such additional information as the City may require.
(2)
There shall be on the application form
for a building permit, the following notice:
"Notice to Taxpayer. By Ordinance
No. 15 of 2009 you may be entitled to exemption from tax on your contemplated
improvement by reassessment. An application for exemption may be secured
from the Bureau of Code Compliance and Inspections or other properly
designated official of the City of Lancaster and must be filed at
the time the building permit is secured."
B.
A copy of the exemption request shall be
forwarded to the County Board of Assessment Appeals by the City's
Chief Building Code Official. The Board shall determine whether the
exemption shall be granted and shall, upon completion of the improvement
or new residential construction, and notification from the City Building
Official that the improvement and new residential construction comply
with all applicable building and housing codes, assess separately
the improvement and calculate the amounts of the assessment eligible
for tax exemption in accordance with the limits established by this
article and notify the taxpayer and the local taxing authorities of
the reassessments and amounts of the assessment eligible for exemption.
In the case of new residential construction, the Board shall assess
separately the dwelling unit and the land upon which the new residential
construction stands and shall otherwise perform its duties as above
provided for construction of improvement to residential, mixed-use
and commercial properties.
C.
The cost of improvement to commercial properties
and mixed-use properties or costs of improvement or construction per
dwelling unit of residential properties, as the case may be, 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.
All properties located within any
tax increment financing zone (TIF) which were not grandfathered and
enrolled in that program shall be excluded from the exemption from
taxes created under this article.
This article shall become effective
immediately as prescribed by law.
No amendments to this article shall
be effective unless consented to by ordinance or resolution of each
local taxing authority who has consented to be bound by the terms
of this article.
This article shall automatically
terminate in 10 years following the effective date hereof; provided,
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.
The provisions of this article are
not severable, and if any section, sentence, clause, part or provision
hereof shall be held to be illegal, invalid or unconstitutional by
any court of competent jurisdiction, such decision of the Court shall
invalidate the entire article. It is hereby declared to be the intent
of the City Council of the City of Lancaster, Lancaster County, Pennsylvania
that this article would not have been enacted but for the inclusion
of this section, sentence, clause, part or provision found to be illegal,
invalid or unconstitutional.
