[Adopted by the County Council 7-5-2000 by Ord. No. 16-00; amended in its entirety 10-21-2003 by Ord. No. 54-03]
As used in this article, the following words
and phrases shall have the meanings set forth below:
The value of a parcel of real property as established by
the Office or the Court of Common Pleas of Allegheny County pursuant
to the provisions of the Second Class County Assessment Law, 72 P.S.
§ 5452.1 or such other applicable law or ordinance, for
the purpose of the assessment and levy of real property taxes. The
term "assessed valuation" shall not include the value of the parcel
of real property upon which a building is located.
The City of Pittsburgh.
Space is used for a commercial residential use if it is suitable
for and is generally to be used by the occupants for personal residence
purposes and is not occupied by the owner (or a relative of the owner).
Examples of space used for a commercial residential use include (but
are not limited to) apartment buildings and hotels.
The erection of a building or buildings on previously unoccupied
land, or upon land on which a building or buildings have been demolished
or razed for the purpose of erecting a new building or buildings consisting
of industrial, commercial (including commercial residential use) or
other business units designated to bring about higher standards of
safety, health, economic use, or sociological growth or amenity.
That portion of a building which in a qualified conversion
to commercial residential use is converted to commercial residential
use, measured by floor area between ground level and the roof, together
with any area of the property or a property in close proximity to
be used for parking by residents or guests only and not by the public.
The County of Allegheny.
Those specific geographic areas within the City of Pittsburgh described in § 475-23 hereof, which have been determined to be physically impaired on the basis of one or more standards, including, but not limited to, the following:
The buildings, by reason of age, obsolescence,
inadequate or outmoded design or physical deterioration, have become
economic or social liabilities.
The buildings are substandard, unsanitary, unhealthy
or unsafe.
The buildings are overcrowded, poorly spaced
or so lacking in light, space and air as to be unwholesome.
The buildings are faultily arranged, cover the
land to an excessive extent, show a deleterious use of land, or exhibit
any combination of the above which is detrimental to health, safety
or welfare.
A significant percentage of buildings are more
than 20 years of age.
A substantial amount of unimproved, overgrown
and unsightly vacant land exists which has remained so for a period
of five years or more, indicating a growing or total lack of utilization
of land for economically desirable purposes.
A disproportionate number of properties are
in a state of tax delinquency.
The area is an impoverished area as certified
by the Department of Community Affairs (now the Department of Community
and Economic Development) under criteria set forth in the Act of November
29, 1967, P.L. 636, No. 282, known as the "Neighborhood Assistance
Act"[1] or is a blighted area under criteria set forth in the
Act of May 24, 1945, P.L. 991, No. 385 known as the "Urban Redevelopment
Law."[2]
Any industrial, commercial or other business property owned
by a property owner or taxpayer and located in a deteriorated area,
as herein provided, or any such property which has been the subject
of any order by a government agency requiring the unit to be vacated,
condemned or demolished by reason of noncompliance with laws, ordinances
or regulations.
Those deteriorated areas within the City of Pittsburgh which
City Council, after public hearing, has determined to be physically
impaired on the basis of one or more standards set forth in the definition
of "deteriorated area" above and additionally containing a high percentage
of poorly spaced, large, at least 20 years old, underutilized buildings
with a design no longer conducive to the original commercial, industrial
or other business use.
The area begins at the intersection of Ft. Pitt Boulevard
and Stanwix Street and continues northward on Stanwix Street to the
Boulevard of the Allies. The boundary line then continues eastward
on the Boulevard of the Allies until it meets Wood Street where the
line continues northward to Fourth Avenue. The boundary line then
continues westward until it meets the eastern boundary of Block 1-H,
Lot 135. The boundary line then goes south, west, and north around
Block 1-H, Lot 135 and then continues westward on Fourth Avenue until
it meets the eastern boundary of Block 1-H, Lot 30. The boundary line
then goes north, west, and south around Block 1-H, Lot 30 and then
continues westward on Fourth Avenue until Stanwix Street where the
line continues northward to Forbes Avenue where it goes eastward on
Forbes Avenue until it meets the western boundary of 1-D-115 where
it goes northwesterly until Liberty Avenue. The boundary line then
continues northeasterly on Liberty Avenue until it meets Sixth Street
where the line continues northward to the northern border of Block
8-S, Lot 62 where the boundary line goes eastward to Barkers Way.
The line continues northward on Barkers Way until Fort Duquesne Boulevard
where it continues eastward until Garrison Way. The boundary then
follows Garrison Way southward to French Street and continues east
on French Street to Tenth Street. The boundary then follows Tenth
Street southward to Liberty Avenue. The boundary goes past Liberty
Avenue to William Penn Place and continues southwesterly along William
Penn Place until Seventh Avenue. The boundary then follows Seventh
Avenue northwesterly until Smithfield Street where it follows Smithfield
Street southward to the northern border of Block 2-A-179 where it
travels east to Montour Way. The boundary then follows Montour Way
southward to Strawberry Street where it goes northwesterly to Coffey
Way. The boundary continues southward along Coffey Way until it meets
Sixth Avenue. The line continues northward on Sixth Avenue until it
meets Liberty Avenue where it continues westward to its intersection
with Sixth Street. The boundary then moves eastward along the northern
border of Blocks 1-D-179, 188, 243, 245, 246, 247, 250, and 251. The
boundary then moves southward along the eastern border of 1-D-251
until it meets Fifth Avenue where it goes eastward until Book Way.
The boundary then follows Book Way southward to Forbes Avenue where
it continues eastward to Smithfield Street. The boundary then goes
southward to Fourth Avenue where it continues eastward until Ross
Street where it continues southward to First Avenue. The boundary
then follows First Avenue west until its intersection with Cherry
Way. Finally, the boundary then follows Cherry Way south to Fort Pitt
Boulevard where it follows Fort Pitt Boulevard westward to its intersection
at Stanwix Street. Excluded from the area constituting the Downtown
District shall be that property described as lot and block number
9-N-131. The Downtown District comprises in part the areas formerly
designated as "First Side" and the "Cultural District."
The nonliability for the payment of additional real property
taxes to the County resulting from increased assessed valuation attributable
to the actual cost of new construction or construction, reconstruction
or improvements made to deteriorated property within a deteriorated
underutilized transition area within a deteriorated area.
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. The conversion
of deteriorated property to commercial residential use shall qualify
as an improvement for purposes of this article.
The County, the city or the school district.
The construction of property located in a deteriorated, underutilized
transition area for commercial residential use, provided that at least
50% of the total building area measured by floor area between the
ground level and the roof, together with any area of the property
or a property in close proximity to be used for parking by residents
or guests only, and not by the public, is used for commercial residential
use.
The area begins at the Allegheny River and Sixteenth Street.
The boundary line then continues northward on Chestnut Street (Sixteenth
Street) to PA Route 28. The boundary line then continues in a northeasterly
fashion approximately 370 feet past Heinz Street. The boundary line
then continues southward in a straight line to the Allegheny River,
where it continues westward along the Allegheny River until Sixteenth
Street.
The Office of Property Assessments of Allegheny County, Pennsylvania,
or such successor entity responsible by law or by ordinance for determining
the valuation of real estate for the assessment and levy of real estate
taxes in Allegheny County.
The improvement of a building carried out during a single
continuous period of time according to a common plan.
Any natural person, partnership, unincorporated association,
or corporation, nonprofit or otherwise. Whenever used in any provision
of this article, the word "property owner" as applied to partnerships
shall mean and include all members thereof and as applied to corporations
shall mean and include all officials or officers thereof. The term
"property owner" used in this article is synonymous with "taxpayer."
Improvements having the effect of converting all or a portion
of property located in a deteriorated underutilized transition area
to commercial residential use so that it becomes habitable; provided
that at least 50% of the total building area, measured by floor area
at ground level and above, is so converted. Neither construction nor
ordinary upkeep and maintenance shall be deemed to be an improvement
which qualifies as a qualified conversion to commercial residential
use.
The rebuilding of a building or buildings previously erected
for the purpose of changing the economic use or amenity of such structure
or to obtain higher standards of safety or health.
The School District of the City of Pittsburgh.
The area begins at Penn Avenue and Eleventh Street and continues
north on Eleventh Street to the Allegheny River. The boundary line
continues along the river to Thirty-First Street and goes south to
Liberty Avenue. The boundary line then continues east for a block
to Thirty-Second Street until it meets Sassafras Way. The boundary
then follows Sassafras Way south until it meets Twenty-Eighth Street.
The area then continues westward on Twenty-Eighth Street to Liberty
Avenue where it continues in a westward fashion until Sixteenth Street.
The boundary follows Sixteenth Street north for one block until it
meets Penn Avenue where it continues westward on Penn Avenue to Fourteenth
Street. It then goes north for one block to Smallman Street and then
goes west for one block on Smallman Street until it meets Thirteenth
Street. The boundary line then continues southward on Thirteenth Street
until it meets Penn Avenue. Finally, the boundary line continues in
a southwesterly fashion along Penn Avenue until it intersects Eleventh
Street.
All Allegheny County taxes, charges, fees, rents or claims
due and unpaid by the owner of the deteriorated property or with respect
to the deteriorated property as of the time of the application for
an exemption or at any time thereafter during the term of the exemption.
The term includes all penalties, additions, interest, attorneys' fees
and costs due on such delinquent taxes, charges, rents or claims.
The twelve-month period from January 1 to December 31 annually.
The Treasurer of Allegheny County.
The area begins at Fifth Avenue and Diamond Street and continues
east on Fifth Avenue to Chatham Street where it travels northward
to Colwell Street. The boundary line then follows Colwell Street eastward
to Kirkpatrick Street where the boundary then goes southward to Interstate
376. The boundary follows Interstate 376 westward until Municipal
Court Way where it then continues northward toward First Avenue. The
boundary line then follows First Avenue westward to Try Way. The boundary
line continues north along Try Way until Second Avenue where it continues
to Crosstown Boulevard. The boundary line follows the Crosstown Boulevard
until it meets Diamond Way. The boundary line then continues along
Diamond Way to its intersection at Fifth Avenue.
A.
Deteriorated areas. County Council does hereby concur
with the determination made by the City of Pittsburgh Council after
public hearing and finds that Wards 1 through 32 of the City of Pittsburgh
respectively constitute a deteriorated area for purposes of this article.
B.
Deteriorated underutilized transition areas. County
Council does hereby concur with the determination made by the City
of Pittsburgh Council after public hearing and finds that the following
areas located within a deteriorated area are deteriorated underutilized
transition areas: Downtown District, Strip District, Uptown District
and North Shore District.
A.
Any property owner undertaking a project which is a qualified conversion to commercial residential use or new construction for residential use may apply for and receive from the County an exemption from County real property taxes due to the increased or additional assessed valuation attributable to the converted residential portion or to the residential portion of the new construction for commercial residential use (including related parking), in the amounts and in accordance with the provisions and limitations set forth in this article. The exemption from County real estate taxes shall be specifically limited to the additional assessed valuation attributable to the actual costs of the qualified conversion to commercial residential use or the new construction for commercial residential use of the property within the deteriorated underutilized transition area. Appeals from the amount of increased assessed valuation attributable to the actual costs of the qualified conversion to commercial residential use or the new construction for commercial residential use of the property within the deteriorated underutilized transition area may be taken by the taxpayer or any local taxing authority as provided by Chapters 207 and 209 of the Allegheny County Administrative Code, the County's Assessment Standards and Practice Ordinance or other applicable law or ordinance. Nothing herein shall preclude a taxpayer or any local taxing authority from appealing the assessed valuation of the deteriorated underutilized transition area property or any increases in assessed valuation not attributable to the qualified conversion to commercial residential use or the new construction for commercial residential use in accordance with Chapters 207 and 209 of the Allegheny County Administrative Code, the County's Assessment Standards and Practice Ordinance or other applicable law or ordinance.
The exemption from County real estate taxes
granted to any property owner undertaking a project which is a qualified
conversion to commercial residential use or new construction for commercial
residential use shall be in accordance with the following conditions
and schedule:
A.
The exemption shall be limited to a period of 10 years.
The ten-year exemption period will commence the year after completion
of the improvements.
B.
The tax exemption in the first two years described in Subsection A shall be 100% of the County's real estate taxation upon the assessed valuation attributable to the converted residential portion or to the residential portion of the new construction for commercial residential use (including related parking). In each succeeding two-year period of the exemption period, the exemption shall decline by 10%. In the ninth and tenth (and final) years, the exemption shall be 60% of the County's real estate taxation upon the assessed valuation attributable to the converted residential portion or to the residential portion of the new construction for commercial residential use (including related parking). In the 11th year and all succeeding years, the exemption shall end and the entire property (land and building) shall be fully taxable.
C.
No exemption hereunder shall exceed $100,000 in any
single year. There is no exemption granted on the assessed valuation
attributable to land. There is no exemption granted if the construction
or improvements are not completed by the end of the third calendar
year following the year the initial building permit was issued.
D.
There is no exemption granted and any existing exemption shall be revoked if and for so long as there exists any tax delinquency with respect to the property or any other property owned in the County by the property owner. An exemption for qualified conversion to residential use shall be revoked if and to the extent the property does not continue to be commercial residential use or for new construction for commercial residential use property. Any revocation shall not extend the exemption period set forth in Subsection A above.
A.
Prior to applying for a building permit, the property
owner shall provide written notice to the Urban Redevelopment Authority
of Pittsburgh (the "Authority"), on behalf of each appropriate local
taxing authority, of its intention to request an exemption, together
with:
B.
Upon the Authority's review and approval of the materials submitted pursuant to Subsection A above, the property owner may obtain from the Bureau of Building Inspection a written application for exemption.
C.
The property owner must certify on the application
the following information:
(1)
Name and address of the property owner.
(2)
Lot and block number of the property to be converted
to commercial residential use or on which the new construction for
commercial residential use is to occur.
(3)
The initial assessed valuation of the property before
conversion to commercial residential use or new construction for commercial
residential use.
(4)
The current year County taxes on the property before
conversion to commercial residential use or new construction for commercial
residential use.
(5)
The date the building permit was issued for the improvement.
(6)
The summary of the plan of construction or plan of
improvement.
(7)
The anticipated date of completion.
(8)
The actual costs of construction or the actual costs
of improvement.
(9)
Such other information as may be necessary to process
such application for temporary exemption.
D.
The property owner shall submit the application for
exemption to the Authority, on behalf of each appropriate local taxing
authority, no later than 180 days after the date when the building
permit is issued. The Authority shall forward a copy of said application
to each taxing authority and the Office within five business days
of receipt or as otherwise mutually agreed. Failure to submit such
exemption request within this time period may permit the County to
deny any exemption claimed pursuant to this article for the initial
tax year after completion of the construction or improvement, thereby
limiting the length of the schedule of taxes exempted to less than
the full ten-year period established under this article.
E.
When the construction or improvement has been completed,
the property owner shall notify the Authority, on behalf of each appropriate
local taxing authority, and the Office in writing within 30 days after
completion. The Authority will forward a copy of such notice to each
appropriate local taxing authority and the Office within five business
days of receipt or as otherwise mutually agreed. Failure to submit
notice of completion within such thirty-day period may permit the
County to deny such request for exemption for the initial tax year
after completion of construction or improvement, thereby limiting
the length of the schedule of taxes exempted to less than the full
ten-year period established under this article. The notice of completion
shall include the following information:
(1)
Name and address of the property owner.
(2)
Lot and block number of the property for which the
exemption for qualified conversion to commercial residential use or
new construction for commercial residential use is sought.
(3)
The date that the construction or the improvement
was completed.
(4)
Any modification to the plan of construction or improvement
as previously submitted.
(5)
The final, adjusted actual costs of construction or
improvement.
F.
The Office shall, after notice in writing and with
a prior physical inspection, assess the property to determine the
valuation attributable to the construction or improvement eligible
for tax exemption under this article.
G.
The Office shall provide to the Authority, each appropriate
local taxing authority and the property owner with the following information
in writing:
(1)
The assessed valuation of the property prior to construction
or improvement.
(2)
The increase in assessed valuation attributed to the
construction or improvement.
(3)
The amount of assessed valuation increase eligible
for tax exemption. The Treasurer shall then exonerate that amount
of the assessed valuation increase and refund the amount of taxes
attributable to the exemption in accordance with the exemption schedule.
The Treasurer, however, shall not exonerate taxes if there exists
any tax delinquency with respect to the property for which the exemption
is sought or any property in the County owned by the property owner.
The exemption from taxes authorized by this
article shall be upon the property exempted and shall not terminate
upon the sale, exchange or other alienation of such property unless
otherwise provided.
The proper officials of the County are hereby
authorized to enter into an intergovernmental cooperation agreement,
pursuant to the Intergovernmental Cooperation Act, 53 Pa.C.S.A. § 2301
et seq. with the City and the School District to implement the exemption
from County real property taxation established under this article.
The intergovernmental cooperation agreement shall be subject to review
and approval as to form by the County Solicitor.
The County Manager and the Office are authorized
to adopt rules and regulations, if necessary, to implement this article.
Subject to the provisions of § 475-31, this article shall enter into effect immediately following its adoption. The provisions of this article shall apply to all applications filed from and after the effective date hereof and through the tenth anniversary of such effective date. 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 of this article, if any, shall not apply to requests initiated prior to its adoption.
The terms of this article and the implementation
of the temporary real property tax exemption granted hereunder are
contingent upon the adoption of a similar amendment to LERTA Ordinance
by the city and a similar amendment to LERTA Resolution by the school
district.
