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Part 1
Residential Tax Abatement. 1
Residential Tax Abatement. 1
[Adopted 12-18-1985 By Ord. No. 97-1985; Amended In Its Entirety 1-6-1988 By Ord. No. 110-1987; 2-13-2023 by Ord. No. 14-2023 (Ch. 24, Part 7A, Of The 2001 Code Of Ordinances)]
1. Editor's Note: Res. No. 828-1979, Adopted 12-12-1979, Has Established The Boundaries Of The Areas Qualifying For The Tax Abatement Program To Be Coextensive With The City Boundaries So As To Include All City Wards.
The purpose of this Part is to encourage investment and reinvestment in the housing inventory of the City, pursuant to the authority contained in an Act of July 9, 1971, P.L. 206, No. 34, as reenacted and amended by Act 42 of August 5, 1977.2
2. Editor's Note: See 72 P.S. § 4711-101 et seq.
[Amended 12-27-1989 by Ord. No. 122-1989]
For the purposes of this Part, all words used in the present tense include future tense, all words in the plural number include the singular number and all words in singular number include the plural number, unless the natural construction of the sentence clearly indicates otherwise. The word "shall" is mandatory and not directory. As used in this Part, certain terms are defined as follows:
ASSESSMENT AGENCY - The Berks County Board of Assessment Appeals.
CITY - The City of Reading.
DETERIORATED AREA - That portion of the City which has been determined to be physically blighted on the basis of one or more of the following standards:
A. The residential buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and/or social liabilities.
B. The residential buildings are substandard or unsanitary for healthful and safe living purposes.
C. The residential buildings are overcrowded, poorly spaced or are so lacking light, space and air as to be conducive to unwholesome living.
D. The residential 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.
E. A significant percentage of buildings used for residential purposes is more than 20 years of age.
F. 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 residential purposes.
G. A disproportionate number of tax exempt or delinquent properties exists in the area.
DETERIORATED NEIGHBORHOOD - A deteriorated neighborhood as defined in the Act of July 9, 1971, P.L. 206, No. 34, and re-enacted and amended by Act 42 on August 5, 1977.3 For the purpose of this Part, Wards 1 through 19, respectively, constitute deteriorated neighborhoods and deteriorating areas within the purview of the previously cited Act 42.
DETERIORATED PROPERTY - A dwelling unit located in a deteriorated neighborhood, as hereinafter provided, 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.
DWELLING UNIT - A house, double house or duplex, townhouse or row house, apartment 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 cooking equipment for the exclusive use of the occupant or occupants. For purposes of this definition, any structure that contains less than three units, and which would otherwise meet the definition of a dwelling unit set forth herein, shall be treated as residential real property subject to the terms of this Part.
IMPROVEMENT - Repair, construction or reconstruction commencing after the effective date of this Part, including alterations and additions, having the effect of rehabilitating a structure so that it becomes habitable or attains higher standards of housing safety, health or amenity, or is brought into compliance with laws, ordinances or regulations governing housing standards. Ordinary upkeep and maintenance shall not be deemed an improvement. Improvement shall include construction to convert a multifamily structure to a single-family building, if the multifamily structure had originally been designed and built to serve as a single-family house. [Amended 7-12-2010 by Ord. No. 32-2010]
NEW RESIDENTIAL CONSTRUCTION - The building or erection, commencing after the effective date of this Part, of dwelling units, as defined in "dwelling unit" hereof, upon vacant land or land specifically prepared to receive such structures.
OWNER - Any person having a legal or equitable interest in the property as recorded in the official records of the state, county or municipality as holding title to the property. [Amended 7-12-2010 by Ord. No. 32-2010]
3. Editor's Note: See 72 P.S. § 4711-101 et seq.
A. There is hereby exempted from real estate taxation, in the amounts and in accordance with the provisions and limitations hereinafter provided, that portion of the assessment attributable to the improvements made to deteriorated property within a deteriorating neighborhood, as defined in § 543-103. [Amended 12-27-1989 by Ord. No. 122-1989]
B. In all cases, the exemption from real estate taxes shall be limited to that portion of the additional assessment attributable to the actual cost of the improvement not in excess of the maximum cost per dwelling unit specified herein, and for which a separate assessment has been made by the Berks County Board of Assessment Appeals and for which an exemption has been separately requested. The maximum cost shall be $10,000 per dwelling unit for improvements constructed during 1971. Maximum cost for improvements constructed each year thereafter shall be the maximum cost for the preceding year multiplied by the ratio of the United States Bureau of the Census New One-Family Houses Price Index for the current year to such index for the preceding year. The date of the construction shall be the date of the issuance of the building permit. No tax exemption shall be granted under the provision of this Part for the improvement of any dwelling unit in excess of the maximum cost specified above. [Amended 12-27-1989 by Ord. No. 122-1989]
C. No property shall be entitled to a tax exemption as herein provided unless the necessary and proper permits prior to improving the property have been applied for and obtained in accordance with the requirements of § 205 of P.L. 206, No. 34, as reenacted and amended by Act 42 of August 5, 1977.4
D. No tax exemption shall be granted if the improvements as completed do not comply with all ordinances, rules, regulations, statutes and other applicable laws.
4. Editor's Note: See 72 P.S. § 4711-205.
[Amended 12-27-1989 by Ord. No. 122-1989]
A. The portion of the assessment of a property attributable to improvements as determined by the assessment agency to be exempted from taxation each year for 10 years shall be in accordance with the schedule below: [Amended 7-12-2010 by Ord. No. 32-2010]
Year | Percentage Exempted |
First | 100% |
Second | 80% |
Third | 60% |
Fourth | 40% |
Fifth | 20% |
B. The exemption from real estate taxes authorized by this Part shall be upon the property exempted and shall not terminate upon the sale or exchange of the property.
C. The exemption from real estate taxes authorized by this Part shall terminate irrevocably upon default in the payment of current real estate taxes, together with accrued penalties and/or interest, due to be paid upon the deteriorated property exempted. For purposes of this Part, a default shall be considered to have occurred if such payment is not made in accordance with the tax bill issued upon the deteriorated property on or before February 15 of the year following the year in which such tax bill is issued. The provisions of this section shall apply prospectively only to terminate the continued exemption of the real estate taxes upon the deteriorated property commencing with the first fiscal year following the year for which the tax bill was issued upon which the default occurred. [Amended 12-6-1995 by Ord. No. 124-1995]
A. Requests for tax exemption as herein provided shall be made in writing on a form provided by the City at the time a building permit is secured, but in no event shall a request for tax exemption be accepted any later than 6 months after the Assessment Agency issues its increased assessment on the Dwelling Unit or if no building permit or other notification of improvements is required, at the time s/he commences construction. [Amended 7-12-2010 by Ord. No. 32-2010]
B. The Chief Building Official shall forward a copy of the request for exemption to the Berks County Board of Assessment Appeals. [Amended 12-27-1989 by Ord. No. 122-19895]
C. The Berks County Board of Assessment Appeals shall, after the improvement is completed, assess the improvement separately, calculate the amount of the assessment eligible for tax exemption in accordance with the limits established by the City and notify the taxpayer and the City of the reassessment and the amount of the assessment eligible for exemption. All abatements shall begin following notification to the City from the Board of an increase in the assessment attributable to the improvement. Appeals from the reassessment and the amounts determined to be eligible for the exemption may be taken by the taxpayer or the City as provided by law. [Amended 12-27-1989 by Ord. No. 122-1989]
D. 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 amendments to this Part, if any, shall not apply to requests initiated prior to their adoption.
5. Editor's Note: Amended during codification (see Ch. 1, General Provisions, Part 2).
A. There is hereby exempted from real estate taxation, in the amounts and in accordance with the provisions and limitations hereinafter provided, the assessed valuation of any new residential construction built in a deteriorating area, as defined in § 543-103.
B. In all cases, the exemption from real estate taxes shall apply to the total assessed valuation attributable to the actual cost of the new residential construction, for which an assessment has been made by the Berks County Board of Assessment Appeals and for which an exemption has been requested. The date of the construction shall be the date of the issuance of the building permit.
C. No property shall be entitled to a tax exemption as herein provided unless the necessary and proper permits prior to building the property have been applied for and obtained in accordance with the requirements of § 205 of P.L. 206, No. 34, as reenacted and amended by Act 42 of August 5, 1977.6
D. No tax exemption shall be granted if the improvements as completed do not comply with all ordinances, rules, regulations, statutes and other applicable laws. [Amended 12-27-1989 by Ord. No. 122-1989]
6. Editor's Note: See 72 P.S. § 4711-205.
[Added 12-27-1989 by Ord. No. 122-1989]
A. The eligible assessed valuation of the property attributable to new residential construction as determined by the assessment agency to be exempted from taxation each year for three years, shall be in accordance with the schedule below: [Amended 7-12-2010 by Ord. No. 32-2010]
Year | Percentage Exempted |
First | 100% |
Second | 100% |
Third | 100% |
After the third year, the exemption shall terminate. |
B. The exemption from real estate taxes authorized by this Part shall be upon the duly constructed dwelling unit or units exempted and shall not terminate upon the sale or exchange of the property.
C. The exemption from real estate taxes authorized by this Part shall terminate irrevocably upon default in the payment in full of all current real estate taxes, together with accrued penalties and/or interest, due to be paid upon the new residential construction exempted. For purposes of this Part, a default shall be considered to have occurred if such payment is not made in accordance with the tax bill issued upon the new residential construction on or before February 15 of the year following the year in which such tax bill is issued. The provisions of this section shall apply prospectively only to deny the continued exemption of the real estate taxes upon the new residential construction commencing with the first fiscal year following the year for which the tax bill was issued upon which the default occurred. [Amended 12-6-1995 by Ord. No. 124-1995]
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