§ 19-3211. Regulations.

   (1)   The Department and, where applicable, the Board of Revision of Taxes, may promulgate regulations to implement any of the abatements, credits or exemptions provided for under this Chapter. Such regulations shall be consistent with the purposes of the Act and this Chapter and may include, but need not be limited to, provisions relating to applications, required documentation and recordkeeping, enforcement and compliance.

§ 19-3212. Transferability.

   (1)   Any exemption, abatement or credit provided to any person or business under this Chapter is nontransferable and cannot be applied, used or assigned to any other person or business or tax account.

§ 19-3213. Recapture. 672

   (1)   General rule. If any qualified business located within the Zone has received an exemption, abatement or credit under this Chapter and subsequently relocates outside of the Zone within five years, that business shall refund to the City or School District, as applicable, the following (for purposes of this subsection, the Zone shall not include the Economic Development District or the Strategic Development Area):  673

      (a)   If a qualified business relocates within three years from the date of first locating in the Zone, sixty-six percent (66%) of all the exemptions, abatements or credits attributed to that qualified business's participation in the Zone shall be refunded.

      (b)   If a qualified business relocates within three to five years from the date of first locating in the Zone, thirty-three percent (33%) of all exemptions, abatements or credits attributed to that qualified business's participation in the Zone shall be refunded.

      (c)   If the qualified business was located within a facility operated by a nonprofit organization to assist in the creation and development of a start-up business, no exemption, abatement or credit shall be refunded.

   (2)   If any qualified business located within the Economic Development District has received an exemption, abatement or credit under this Chapter and subsequently relocates outside of the Economic Development District within five years, that business shall refund to the City the following:

      (a)   If the qualified business relocates within three years from the date of first locating in the economic development district, seventy-five percent (75%) of all the exemptions, deductions, abatements or credits attributed to the qualified business's participation in the economic development district shall be refunded to the Commonwealth and the qualified political subdivisions.

      (b)   If a qualified business relocates within four to seven years from the date of first locating in the economic development district, fifty percent (50%) of all exemptions, deductions, abatements or credits attributed to the qualified business's participation in the economic development district shall be refunded to the Commonwealth and the qualified political subdivisions.

      (c)   If the qualified business was located within a facility operated by a nonprofit organization for food distribution, no exemption, deduction, abatement or credit shall be refunded.

   (3)   If the Department, the Board of Revisions of Taxes or DCED finds that a taxpayer claimed an abatement, exemption or credit of real estate tax or any other tax to which the taxpayer was not entitled under the Act or this Chapter, the taxpayer shall be liable for the abated taxes and subject to the applicable interest and penalty provisions provided by law.

 

Notes

672	Amended, Bill No. 010092 (approved February 28, 2001); amended, Bill No. 050504-A (approved July 8, 2005). See note 594 for effective date provisions.
673	Amended, Bill No. 071081 (approved December 21, 2007). See note 613 for effective date provisions.

§ 19-3214. Delinquent or Deficient State or City Taxes.

   (1)   Persons. No person may claim or receive an exemption, abatement or credit under this Chapter unless that person is in full compliance with all state and local tax laws, ordinances and resolutions. 674

   (2)   Qualified business.

      (a)   No qualified business may claim or receive an exemption, abatement or credit under this Chapter unless such qualified business is in full compliance with all state and local tax laws, ordinances and resolutions.

      (b)   No qualified business may claim or receive an exemption, abatement or credit under this Chapter if any person or business with a twenty percent (20%) or greater interest in such business is not in full compliance with all state and local tax laws, ordinances and resolutions.

   (3)   A taxpayer shall be deemed to be in compliance with any City or School District tax for purposes of this Chapter if that taxpayer made a timely administrative or judicial appeal for that particular tax or entered into and is in compliance with a duly authorized deferred payment plan with the Department or the Commonwealth Department of Revenue for that particular tax.

   (4)   Later compliance and eligibility.

      (a)   Any person or qualified business that is not eligible to claim an exemption. abatement or credit due to noncompliance with any state or local tax law may become eligible if that person or qualified business subsequently comes into full compliance with all state and local tax laws to the satisfaction of the Commonwealth Department of Revenue or the Department within the calendar year in which the noncompliance first occurred. If full compliance is not attained by February 5 of the calendar year following the calendar year in which noncompliance first occurred, then that person or qualified business is precluded from claiming an exemption, abatement or credit for that calendar year, whether or not full compliance is achieved subsequently. 675

 

Notes

674	Amended, Bill No. 010092 (approved February 28, 2001).
675	Amended, Bill No. 010092 (approved February 28, 2001).

§ 19-3215. Code Compliance.

   (1)   General rule. A person or qualified business shall be precluded from claiming any exemption, abatement or credit provided for in this Chapter with respect to any real property in the Zone (other than in the Economic Development District or Strategic Development Area) if that person or qualified business owns real property in the Zone (other than in the Economic Development District or Strategic Development Area); or with respect to any real property in the Economic Development District if that person or qualified business owns real property in the Economic Development District; or with respect to any real property in the Strategic Development Area if that person owns real property in the Strategic Development Area; if the real property is not in compliance with all applicable State and local zoning, building and housing laws, ordinances or codes and the real property owner has not filed an affidavit with the Department attesting to compliance for that calendar year before December 31 with all applicable State and local zoning, building and housing laws, ordinances or codes. For purposes of this subsection, real property is not in compliance with all applicable State and local zoning, building and housing laws if liens have been placed on such property by the City with respect to prior violations of any State or local zoning, building and housing laws and such liens have not been satisfied. The requirement to file an affidavit shall not apply with respect to benefits relating to real property in the Philadelphia Keystone Opportunity Expansion Zone, the Economic Development District or the Strategic Development Area. 676

   (2)   Opportunity to achieve compliance. The person or qualified business who is not in compliance under subsection (1) shall have until December 31 of the calendar year following designation of the real property as part of the Zone to be in compliance in order to claim any exemptions, abatements or credits under this Chapter for that year. If full compliance is not attained by December 31 of that calendar year, the person is precluded from claiming any exemption, abatement or credit for that calendar year, whether or not compliance is achieved in a subsequent calendar year. The Department may extend the time period in which a person or qualified business must come into compliance with a local ordinance or building code for a period not to exceed one year if the Department, in consultation with the Department of Licenses and Inspections, determines that the person or qualified business has made and shall continue to make a good faith effort to come into compliance and that an extension will enable the person to achieve full compliance.

 

Notes

676	Amended, Bill No. 010092 (approved February 28, 2001); amended, Bill No. 050504-A (approved July 8, 2005). See note 594 for effective date provisions. Amended, Bill No. 071081 (approved December 21, 2007). See note 613 for effective date provisions.

§ 19-3216. Administration and Construction.

   (1)   Nothing in this Chapter shall relieve any person or business from any filing or reporting obligation set forth elsewhere in this Title.

   (2)   Illegal activity. Any funds or other forms of consideration received by a person or business conducting any type of illegal activity and, in an Economic Development District, any funds or other forms of consideration received by a person or business from gaming, shall not be eligible for any of the exemptions, deductions, abatements and credits or any other benefits that are created under this Chapter. 677

   (3)   The provisions of the Act not herein enumerated shall, nevertheless, be incorporated as part of this Chapter by reference, and shall supersede any inconsistent provisions in this Chapter, where required by law. To the extent any requirement set forth in this Chapter is unlawful or would cause the Zone to lose its designation as a Keystone Opportunity Zone under the Act, it is the intent of Council to enact this Chapter without such offending requirement.

   (4)   This Chapter shall be interpreted to ensure that all provisions relating to tax exemptions, abatements and credits are strictly construed in favor of the City and School District.

 

Notes

677	Amended, Bill No. 050504-A (approved July 8, 2005). See note 594 for effective date provisions.