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The purpose of this Part is to encourage investment and reinvestment in industrial, commercial and other business property in the City pursuant to the authority contained in the Local Economic Revitalization Tax Assistance Act enacted December 1, 1977.
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9. Editor's Note: See 72 P.S. § 4722 et seq.
For the purpose 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 PROPERTY — 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.
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.
INVESTMENT OPPORTUNITY AREAS — Deteriorated areas as defined in the Local Economic Revitalization Tax Assistance Act, enacted as of December 1, 1977.
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For the purpose of this Part, Wards 1 through 19 of the City, respectively, constitute investment opportunity areas within the purview of the Local Economic Revitalization Tax Assistance Act.
10. Editor's Note: See 72 P.S. § 4722 et seq.
[Amended 3-28-1990 by Ord. No. 27-1990]
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 new construction in an investment opportunity area and to the improvements made to deteriorated property, as defined herein.
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 to deteriorated property 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, and for the assessed valuation of new construction within the designated investment opportunity area.
C. No property shall be entitled to a tax exemption as herein provided unless the necessary and proper permits prior to new construction or improving the deteriorated property have been applied for and obtained in accordance with the requirements of § 6 of the Local Economic Revitalization Tax Assistance Act.
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D. No tax exemption shall be granted if the new construction or improvements to deteriorated property as completed do not comply with all ordinances, rules, regulations, statutes and other applicable laws.
E. For purposes of this Part, any new structure or improvement to an existing structure that contains three or more dwelling units and that otherwise qualifies under the terms of this Part shall be treated as commercial real property subject to the terms of this Part.
11. Editor's Note: See 75 P.S. § 4727.
A. A portion of the assessment of a property attributable to new construction or improvements to deteriorated property 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. 30-2010; Amended 12-28-2020 by Ord. No. 95-2020]
Year | Percentage Exempted |
First | 100% |
Second | 80% |
Third | 60% |
Fourth | 40% |
Fifth | 20% |
After the fifth year, the exemption shall terminate. |
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 in full of current real estate taxes, together with accrued penalties and/or interest, due to be paid upon the new construction or improvements to 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 new construction or improvements to 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 deny the continued exemption of the real estate taxes upon the new construction or improvements to 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. 125-1995]
[Amended 3-28-1990 by Ord. No. 27-1990; 5-29-2001 by Ord. No. 14-2001; Amended 12-28-2020 by Ord. No. 95-2020]
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 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. 30-2010]
B. The Finance Director shall forward a copy of the request for exemption to the Berks County Board of Assessment Appeals.12
C. The Board shall, after the new construction or improvement to deteriorated property is completed, assess the new construction or assess the improvement separately and 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 or the new construction. Appeals from the reassessment in the amounts determined to be eligible for the exemption may be taken by the taxpayer or the City as provided by law.
D. The assessment attributable to the cost of new construction or improvements to deteriorated property 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.
12. Editor's Note: Amended during codification (see Ch. 1, General Provisions, Part 2).
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