Home Table of Contents

§ 1623. Financing of transportation development

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 53 P.S. Municipal and Quasi-Municipal Corporations

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 53 P.S. Municipal and Quasi-Municipal Corporations
Part I. General Municipal Law
Chapter 10A. Transportation Partnership Act (Refs & Annos)
53 P.S. § 1623
§ 1623. Financing of transportation development
(a) In general.--The governing body of any municipality or, in the case of paragraphs (4) and (5), any municipal authority which has designated an area as a transportation development district may finance a transportation facility or transportation service within such district by:
(1) Imposing a fair and reasonable assessment upon business property located within the district subject to the limitations of and pursuant to the procedures and requirements of sections 2(2) through (5), 3 and 4 of the act of November 30, 1967 (P.L. 658, No. 305),1 known as the Business Improvement District Act of 1967. However, if the assessment imposed is authorized to be paid in installments, the installments need not be equal. Also, the property on which improvements are to be made need not be acquired if the improvements will be in a right-of-way.
(2) Imposing a fair and reasonable assessment on each benefited property within the specific district using a formula adopted by the governing body of the municipality based upon actual or projected usage by each property within the district of the transportation facilities or services to be financed by such district. There shall be no exception, exclusion or preference granted to any property.
(3) Imposing any tax otherwise permitted by law, but restricting such tax to subjects of taxation located within a transportation development district, and restricting the receipts of such tax to the financing of such transportation facility or service; provided, however, that where the transportation district is not coterminous with the municipal boundaries, such transportation districts must be coterminous or solely within a “deteriorated area” as defined by section 4(a) of the act of December 1, 1977 (P.L. 237, No. 76),2 known as the Local Economic Revitalization Tax Assistance Act.
(4) Issuing notes and bonds and entering into leases, guarantees and subsidy contracts pursuant to the provisions of the act of July 12, 1972 (P.L. 781, No. 185),3 known as the Local Government Unit Debt Act, or, in the case of a municipal authority, pursuant to the provisions of the act of May 2, 1945 (P.L. 382, No. 164),4 known as the Municipality Authorities Act of 1945.
(5) Accepting grants, gifts and donations.
(b) Municipal authority.--A municipal authority may not impose an assessment under paragraph (1) or (2) of subsection (a) without the express approval of the governing body or bodies of the municipality or municipalities in which the district is located, as provided in section 4B(w) of the Municipality Authorities Act of 1945,5 and a municipal authority may not impose any tax pursuant to subsection (a)(3). However, a municipality may impose a tax pursuant to subsection (a)(3) to assist a municipal authority in financing a transportation facility or service in a transportation development district if the district was designated as such by the municipal authority with the approval of the municipality as provided for in section 2(a).6
(c) Claims to secure assessments.--Claims to secure the assessments imposed pursuant to this section shall be entered in the office of the prothonotary of the county at the same time and in the same form and shall be collected in the same manner as municipal claims are filed and collected, subject to the provisions of section 4(c) of the Business Improvement District Act of 1967.7 The resolution or ordinance authorizing an assessment imposed pursuant to this section may limit the ability of a benefited property owner to prepay scheduled installments of such assessments.
(d) Limitations.--
(1) Assessments under paragraph (1) or (2) of subsection (a) shall be used only for new or improved transportation facilities or services.
(2) The proceeds from financing activities under subsection (a) shall not exceed the total costs identified in the multiyear transportation improvement program and financial plan required by section 4,8 except:
(i) to cover unanticipated cost increases not exceeding 10% on a facility or services basis; or
(ii) in cases where a project revision results in a cost increase, after public hearing thereon as set forth in subsection (e) and the passage of an ordinance revising the project or the multiyear plan and financial plan to reflect such increase.
(e) Public hearings.--Public hearings shall be required before passage of the enabling ordinance. At such public hearings any interested party may be heard. Notice of such hearings shall be advertised at least 15 days prior thereto in a newspaper circulating in such municipalities. Said ordinance shall specify the transportation project, the transportation development district or districts related thereto, with respective costs, to be undertaken. “Costs of any improvement” or “total cost of improvements” as used in this act shall include, but not be limited to, the transportation project, engineering, architectural, attorney or other consulting fees, financing costs and all other costs necessary and incidental to the completion of the improvement. Said ordinance shall not become effective if, before the expiration of 45 days after its enactment, property owners of the proposed district whose property valuation as assessed for taxable purposes shall amount to more than 50% of the total property valuation of the district shall sign and file, in the office of the prothonotary of the court of common pleas of the county in which the district is located, a written protest against said ordinance.
(f) Notice to property owners.--At least 15 days prior to the first notice of the public hearing as required by subsection (e), the municipality or authority shall provide a written notice to the owners of all property in the district setting forth: the total cost of the project proposed, the total amount to be assessed in the district, clear and specific information from which the property owner can clearly understand the amount of assessment to be imposed on the landowner's property, and an explanation of the right to object and the requirements to prevent the ordinance from becoming effective pursuant to subsection (e). Written notice shall be deemed given when sent by first class mail, postage prepaid, to the person and address listed in the county real property assessment records. No assessment shall be invalid on account of failure of a person to receive written notice.
(g) Limitation on use of funds.--No funds obtained under this section shall be used for any purpose other than financing the transportation project for which said funds were initially raised.

Credits

1985, July 9, P.L. 187, No. 47, § 3, imd. effective. Amended 1986, July 2, P.L. 304, No. 75, § 2, imd. effective.

Footnotes

53 P.S. §§ 1552(2) through (5), 1553, 1554 (repealed).
72 P.S. § 4725(a).
53 P.S. § 6780-1 et seq. (repealed); see now, 53 P.S. §§ 881.101 to 881.501.
53 P.S. § 301 et seq. (repealed); see now, 53 Pa.C.S.A. § 5601 et seq.
53 P.S. § 306 (repealed); see now, 53 Pa.C.S.A. § 5607.
53 P.S. § 1622(a).
53 P.S. § 1554 (repealed).
53 P.S. § 1624.
53 P.S. § 1623, PA ST 53 P.S. § 1623
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document