(a) Definitions. As used in this section, the following words and phrases shall have the meaning set forth below.
(1) “Act and/or Program” means the Local Economic Revitalization Tax Assessment (LERTA) Act of the Commonwealth of Pennsylvania.
(2) “Applicable property” means any industrial, commercial, or other business property owned by an individual, association, or corporation, and located in a underutilized, blighted, or deteriorating area, as designated herein, or any such property which has been the subject of an order by the City of Johnstown, the County of Cambria, and/or the Greater Johnstown School District requiring the unit to the vacated, condemned, or demolished by reason of noncompliance with laws, ordinances, or regulations.
(3) “Assessment agency” means the Cambria County Tax Assessment Office or any other appropriate assessment agency.
(4) “Commercial LERTA” means a Program classification for any applicable property (commercial, industrial, or mixed-use) undergoing qualified improvements.
(5) “Designated area” means the area, as designated herein, and contained within the municipal boundaries of the City of Johnstown.
(6) “Local taxing authority” means the City of Johnstown, the Greater Johnstown School District, the County of Cambria, or any other governmental entity having the authority to levy real property taxes within the jurisdiction of the City of Johnstown, Pennsylvania.
(7) “Qualified improvement” means the construction of new building structures, repair or substantial renovations to existing structures, having the effect of rehabilitating an underutilized, blighted, or deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with the laws, ordinances, or regulations governing said standards. The qualified improvement shall be such which results in an increase in assessed valuation; scheduled and/or ordinary upkeep and maintenance shall not be deemed a qualified improvement.
(8) “Residential LERTA” means a Program classification for any applicable property (residential rentals/apartments/townhouses, or hotels) undergoing qualified improvements. The Program is not intended and shall not be applicable to personal residential residences.
(b) Exemption Amount.
(1) The amount to be exempted shall be limited to that portion of the additional assessment attributable to the actual cost of improvements.
(2) The exemption shall be limited to that improvement for which an exemption has been requested in the manner set forth below, and for which a separate assessment has been made by the Cambria County Tax Assessment Office.
(c) Exemption Schedule. All exemptions available hereunder shall be based upon the aggregate cost of each improvement as follows:
(1) The assessed valuation of qualified improvements to an applicable property shall be exempt of real properly taxation in accordance with the following schedule and for the following period of years commencing with the first year which the qualified improvements are assessed for a full calendar year, to-wit:
A. Commercial LERTA.
Abatement Period: | 10 Years |
Assessment Increment Abated: | Year 1 & 2: 100% |
Year 3 & 4: 80% | |
Year 5 & 6: 60% | |
Year 7 & 8: 40% | |
Year 9 &10: 20% |
B. Residential LERTA.
Abatement Period: | 5 years |
Assessment Increment Abated: | Year 1: 100% |
Year 2: 80% | |
Year 3: 60% | |
Year 4: 40% | |
Year 5: 20% |
(2) The City of Johnstown reserves the right to amend this section or any portion thereof from time to time as it shall deem advisable as in the best interest of the advancement of the purposes and intent of this section and the effective administration thereof.
(3) The exemption from taxes granted under this section shall be upon the property and shall not terminate upon the sale or exchange of the property.
(4) This section shall become effective immediately upon approval, and unless otherwise repealed by subsequent legislation, this section shall remain in effect for a period of eight years from the date of approval. However, as hereinbefore stated, the City of Johnstown reserves the right to amend this section or repeal this section at any time. However, any property tax exemptions granted hereunder shall be permitted to continue according to the exemption schedule as set forth in this subsection.
(d) Application by Taxpayer.
(1) The taxpayer shall have the obligation to apply for the exemption as set forth herein.
(2) At the time a building permit is secured and issued for the construction of a qualified improvement for which an exemption is requested, the taxpayer shall apply to the City of Johnstown Department of Community and Economic Development or any successor agency thereto, for the exemption provided for in this section. The request for the exemption must be provided by a completed application, as provided herein, and prescribed by the City of Johnstown.
(3) The taxpayer must have the completed application with requested attachments submitted and filed ninety calendar days after receiving their building permit.
(e) Procedure for Obtaining Exemption.
(1) A copy of the approved request of real estate exemption under the applicable LERTA Program shall be forwarded by the City of Johnstown Department of Community and Economic Development to the Cambria County Tax Assessment Office and the Greater Johnstown School District.
(2) Upon the completion of the reassessment the Cambria County Tax Assessment Office will notify the taxpayer of the calculated amount of assessment eligible for tax exemption through the standard (CA) process.
(3) Appeals from the reassessment of qualified improvements and the amount eligible for tax exemption may be taken by the taxpayer as provided by law.
(f) Hearing Board.
(1) A Tax Abatement Hearing Board shall consist of the Finance Director of the City of Johnstown (Chair) and a representative to be named by the Greater Johnstown School District and Cambria County, for resolution of differences between the approving authority and the owner-taxpayer of the improved property on matters concerning interpretation and execution of the provisions of this section.
(2) The Hearing Board shall have the following powers and responsibilities:
A. To hear appeals from any person aggrieved by the application of this section.
B. To make rules with regard to conducting its hearings.
C. To make findings of fact as may be required by the application of this section.
D. To decide questions presented to the Board.
E. To affirm, revoke, or modify the decision of the City of Johnstown to the eligibility of a particular property for the property tax abatement as provided for in this section.
F. The Board shall meet upon notice of the Chairman within thirty days of the filing of an appeal and shall render its decision within fifteen days after the appeal hearing.
G. Every action of the Board shall be by resolution and certified copies furnished to the appellant.
H. All hearings shall be public; and the appellant or any other person whose interests may be affected by the matter on appeal shall be given an opportunity to be heard.
(g) Rules and Regulations. The Director of the Department of Community and Economic Development is hereby authorized and empowered to prepare, promulgate, and enforce rules and regulations made pursuant to the provisions of this section. Such rules and regulations shall have the full force and effect of law unless modified, revoked, or repealed by Council.
(h) Boundaries. The boundaries, as designated herein, are hereby affixed as the boundaries of the LERTA Program and all industrial, commercial, or other business properties located therein shall be considered an applicable property of this section. The boundaries of the LERTA Program or any portion thereof may be changed from time to time as it shall deem advisable as in the best interest of the advancement of the purposes and intent of this section.
(i) Contingency. Adoption of this section is not contingent upon the final adoption of Local Economic Revitalization Tax Assistance Act (LERTA) by the Greater Johnstown School District and/or Cambria County.
(j) Default. Tax abatement under this section shall be available only for those properties for which real estate taxes are promptly paid and discharged when due. Any property that is declared delinquent as established by the statutes of the Commonwealth of Pennsylvania shall lose the LERTA benefits and any and all currently due and future taxes shall be due and payable at the full unabated assessment and tax rate.
(k) Appeal of Default. Properties that have been declared delinquent may appeal the rescission of the LERTA by providing a written request to the Hearing Board providing a basis for the appeal and the justification for the waiver of the requirements of subsection (j).
(l) Termination. Unless otherwise repealed by subsequent legislation, this section shall remain effective for a period of eight years from the date of enactment. However, if this section should subsequently be repealed, any property tax exemptions granted hereunder shall be permitted to continue according to the exemption schedule as set forth in subsection (c) herein.
(Ord. 5141. Passed 2-18-14; Ord. 5165. Passed 1-14-15; Ord. 5175. Passed 6-10-15.)