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§ 4728.303. Exemption schedule

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: September 9, 2022

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 4. Local Taxation (Refs & Annos)
Exemptions (Refs & Annos)
Affordable Housing Unit Tax Exemption Act
Chapter 3. Creating and Improving Affordable Housing Units in Deteriorated Areas
Effective: September 9, 2022
72 P.S. § 4728.303
§ 4728.303. Exemption schedule
Currentness
(a) Provision.--A local taxing authority granting a tax exemption under this chapter may provide for a tax exemption on the assessment attributable to the actual cost of new construction or improvements for affordable housing units or up to any maximum cost uniformly established by the local taxing authority. The maximum cost shall uniformly apply to each eligible blighted property within the deteriorated area within the local taxing authority's jurisdiction.
(b) Schedule.--Notwithstanding if the assessment eligible for exemption is based on actual cost or a maximum cost, the actual amount of real estate taxes exempted shall be in accordance with one of the following schedules, as determined by the local taxing authority:
(1) For the following years for which improvements would otherwise be taxable:
(i) for the first year, 100% of the eligible assessment shall be exempted;
(ii) for the second year, 90% of the eligible assessment shall be exempted;
(iii) for the third through tenth years, 80%, 70%, 60%, 50%, 40%, 30%, 20% and 10%, respectively; and
(iv) after the tenth year, the exemption shall terminate.
(2) For the following years for which improvements would otherwise be taxable:
(i) for the first year, 100% of the eligible assessment shall be exempted;
(ii) for the second year, 80% of the eligible assessment shall be exempted;
(iii) for the third through fifth years, 60%, 40% and 20%, respectively, of the eligible assessment shall be exempted; and
(iv) after the fifth year, the exemption shall terminate.
(3) For the following years for which improvements would otherwise be taxable:
(i) for the first through third years, 100% of the eligible assessment shall be exempted; and
(ii) after the third year, the exemption shall terminate.
(4) For the first through tenth years for which improvements would otherwise be taxable, 100% of the eligible assessment shall be exempted and after the tenth year the exemption shall terminate.
(5) A local taxing authority may provide for tax exemption on the assessment attributable to the actual cost of construction of the dwelling unit in accordance with a schedule established by the taxing authority, if the exemption schedule does not exceed a period of 10 years.
(c) Limitation.--The exemption from taxes shall be limited to the additional assessment valuation attributable to the actual costs of new construction or improvements to blighted property or not in excess of the maximum cost per unit established by a local taxing authority.
(d) Sale or exchange.--The exemption from taxes shall be upon the property exempted and shall not terminate upon the sale or exchange of the property.
(e) Estimate.--A local taxing authority shall provide upon request an estimate of the amount of assessment exempted for each eligible property based on the exemption schedule under subsection (b).
(f) Repayment.--
(1) A local taxing authority shall be entitled to a return of its proportional share of real estate taxes exempted under the provisions of this act if, within five years following completion of the new construction or improvements:
(i) there exists on the property a serious violation of State law or a municipal code and the owner has taken no substantial steps to correct the serious violation within six months following notification of the serious violation and for which fines or other penalties or a judgment to abate or correct were imposed by a magisterial district judge or municipal court and a final judgment at law or in equity, not subject to appellate review, was imposed by a court of common pleas; or
(ii) the taxpayer is subject to a municipal permit denial under 53 Pa.C.S. Ch. 61 (relating to neighborhood blight reclamation and revitalization).
(2) At the time the agreement is entered into between a local taxing authority and the taxpayer who desires tax exemption, if the taxpayer has completed all requirements under section 305, the local taxing authorities shall file a lien against the tax-exempt properties at the rate of the estimated amount of assessment under subsection (b). The lien shall be forgiven by the local taxing authority at the end of the fifth year following the completion of the new construction or improvements if there have been no serious violations against the property that have not been corrected. The lien on the property shall transfer under subsection (d) in cases of sale or exchange of the property.

Credits

2022, July 11, P.L. 703, No. 58, § 303, effective in 60 days [Sept. 9, 2022].
72 P.S. § 4728.303, PA ST 72 P.S. § 4728.303
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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