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§ 4712-105. Exemption schedule

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: September 14, 2020

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 4. Local Taxation (Refs & Annos)
Exemptions (Refs & Annos)
Tax Exemption and Mixed-Use Incentive Program Act
Effective: September 14, 2020
72 P.S. § 4712-105
§ 4712-105. Exemption schedule
Currentness
(a) General rule.--A local taxing authority granting a tax exemption under this act may provide for tax exemption on the assessment attributable to the actual cost of new construction or improvements or up to any maximum cost uniformly established by the municipal corporation. The maximum cost shall uniformly apply to all eligible blighted property in the deteriorated area within the local taxing authority's jurisdiction.
(b) Schedule.--Whether or not the assessment eligible for exemption is based upon actual cost or a maximum cost, the actual amount of taxes exempted shall be in accordance with the following:
(1) For the first, second and third years for which new construction or improvements would otherwise be taxable, 100% of the eligible assessment shall be exempted.
(2) For the fourth year for which new construction or improvements would otherwise be taxable, 90% of the eligible assessment shall be exempted.
(3) For the fifth year for which new construction or improvements would otherwise be taxable, 75% of the eligible assessment shall be exempted.
(4) For the sixth year for which new construction or improvements would otherwise be taxable, 60% of the eligible assessment shall be exempted.
(5) For the seventh year for which new construction or improvements would otherwise be taxable, 45% of the eligible assessment shall be exempted.
(6) For the eighth year for which new construction or improvements would otherwise be taxable, 30% of the eligible assessment shall be exempted.
(7) For the ninth year for which new construction or improvements would otherwise be taxable, 15% of the eligible assessment shall be exempted.
(8) For the tenth year for which new construction or improvements would otherwise be taxable, 10% of the eligible assessment shall be exempted.
(9) After the tenth year, the exemption shall terminate.
(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 municipal corporation.
(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 taxes exempted under the provisions of this act if, within five years following completion of the new construction or improvements, there exists on the property a serious violation of a State law or a property maintenance code and the owner has taken no substantial steps to correct the violation within six months following notification of the 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, or a judgment at law or in equity was imposed by a court of common pleas.
(2) At the time the agreement is entered into between a local taxing authority and the person who desires tax exemption, if the person has completed all requirements under section 6,1 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

2020, July 14, P.L. 631, No. 61, § 5, effective in 60 days [Sept. 14, 2020].

Footnotes

1
72 P.S. § 4712-106.
72 P.S. § 4712-105, PA ST 72 P.S. § 4712-105
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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