Loading...
The purpose of this Part is to serve as an additional encouragement of investment and reinvestment in industrial, commercial and other business property in the City of Reading, pursuant to the authority contained in the Local Economic Revitalization Tax Assistance Act, enacted December 1, 1977,
14
by creating a special opportunity area within the area covered by the current Reading LERTA Ordinance [Part 2 of this chapter].
14. Editor's Note: See 72 P.S. § 4722 et seq.
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 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.
ENTERPRISE ZONE INVESTMENT OPPORTUNITY AREAS — Deteriorated areas as defined in the Local Economic Revitalization Tax Assistance Act, enacted as of December 1, 1977. For the purposes of this Part, the geographic area of the City outlined on Exhibit "A" attached hereto and incorporated herein by reference,
15
and identified as the "enterprise zone tax abatement opportunity area," constitutes the investment opportunity area within the purview 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.
15. Editor's Note: Exhibit A is on file in the City offices.
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 enterprise zone 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.
16
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.
16. Editor's Note: See 72 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 shall be in accordance with the schedule below unless sooner terminated in accordance with Subsection C below:
Year | Percentage Exempted |
Year | Percentage Exempted |
First | 100% |
Second | 100% |
Third | 100% |
Fourth | 100% |
Fifth | 80% |
Sixth | 60% |
Seventh | 40% |
Eighth | 20% |
Ninth After the eighth year, the exemption shall terminate. | 0%
|
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 all 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 deny 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.
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 six months after the Berks County Board of Assessment Appeals has issued their assessment on the new construction or improvement.
B. The Community Development Department shall forward a copy of the Request for Exemption to the Berks County Board of Assessment Appeals.
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.
E. Notwithstanding anything to the contrary in this Part, no request for tax exemption under this Part shall be granted concerning any deteriorated property until all past due real estate taxes, together with accrued penalties and/or interest, which have been returned to the Berks County Tax Claim Bureau upon that property have been paid in full and satisfactory evidence thereof has been provided to the Finance Department of the City. All requests shall be denied irrevocably if such taxes, penalties and interest are not paid and satisfactory evidence thereof provided prior to six months after the Berks County Board of Assessment Appeals has issued their assessment on the new construction or improvement.
Loading...