Article 362
LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE CODE
Sections:
362.04 Limitations of exemption.
362.07 Procedure for obtaining exemption.
362.01 Short title.
This article shall be known and denominated as the local economic revitalization tax assistance code. (Ord. 3654 § 1, 2008)
362.02 Definitions.
For purposes of this article, the following terms shall have the following meanings:
A. “Improvement” means repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating and/or improving a commercial property so that it attains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances or regulations governing such standards, and which improvement increases the assessed value of the commercial property a minimum of 25 percent. New construction of commercial or other business properties by individuals, associations, or corporations within the designated deteriorated or deteriorating area shall be deemed to be a commercial improvement. Ordinary upkeep and maintenance shall not be deemed to be a commercial improvement. Properties which are used primarily for residential purposes shall not qualify as commercial properties for purposes of this article. The determination of the increase in assessed value shall be based on a final assessed valuation, conducted following any tax assessment appeal by the property owner of such assessment, if any such appeal is filed.
B. “Deteriorated area” or “deteriorating area” is defined as the geographic area bounded by the City of Meadville city limits.
C. “Deteriorated property” means any industrial, commercial or other business property owned by an individual, association or corporation and located in the designated deteriorated or deteriorating area.
D. “Exemption” means the exemption from taxation provided pursuant to the terms of this article in accordance with the authority of the Pennsylvania Local Economic Revitalization Tax Assistance Act found at 53 P.S. Section 4722 et seq. The exemption provided pursuant to the terms of this article shall be the exemption for tax purposes from the total assessed value of any subject property or that portion of the assessed value attributable to improvements for which an exemption has been granted by the appropriate assessment authorities. The actual cost of any improvement shall be relevant to the exemption only to the extent that appropriate assessment officials consider the actual cost of such improvements in determining the assessed value of the subject property. In no event shall any exemption of assessed value exceed the actual cost incurred in the making of any improvement regardless of whether the subject improvement increases the assessed value of the property by a sum in excess of the actual cost of the improvement. (Ord. 3701 § 1, 2012; Ord. 3654 § 1, 2008)
362.03 Grant of exemption.
From and after the effective date hereof, and subject to the limitations hereinafter stated, there is hereby exempted from real estate taxation the assessed value of all improvements, as herein defined. (Ord. 3654 § 1, 2008)
362.04 Limitations of exemption.
The exemption granted pursuant to the terms of this article shall be limited as follows:
A. Limited to Assessed Value of Improvement. The exemption hereby granted shall apply only to the assessed valuation of an improvement and in no case shall exceed the actual cost of the improvement.
B. Limited to Improvements to Damaged Property. In the event of improvements to properties damaged by fire or other casualty after the effective date hereof, only so much of the assessed value of improvements actually made which would cause the assessed value of the improved structure to exceed the assessed value of the structure in the tax year immediately preceding the casualty shall be subject to exemption.
C. Schedule of Exemptions. Exemptions shall be granted as follows:
|
Year in Which Improvements Are Taxable |
Proportion of Assessed Value Exempted |
|---|---|
|
First year |
100% |
|
Second year |
80% |
|
Third year |
60% |
|
Fourth year |
40% |
|
Fifth year |
20% |
|
Sixth year |
0% |
D. Year Exemptions Are Made. Exemptions hereby granted shall apply either (1) in the first tax year following the year after completion of the new construction or improvement, or (2) in the event the property is already exempt under the authority of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, and Keystone Opportunity Improvement Act found at 73 P.S. Section 820.101 et seq. (herein referred to as the Keystone Opportunity Zone Act), then in the first tax year following the termination of the exemption under the Keystone Opportunity Zone Act. In no event shall the exemption extend more than 10 years after the improvement has been completed and assessed. (Ord. 3654 § 1, 2008)
362.05 Nonrecognition.
No improvements granted exemption pursuant to the terms of this article shall, during the period of exemption granted pursuant to the terms hereof, be considered as a factor in assessing other properties. (Ord. 3654 § 1, 2008)
362.06 Notice to taxpayers.
All building permit applications for improvements (as herein defined) issued by the City of Meadville shall, from and after the effective date hereof, be accompanied by a written notice to the applicant of the existence of the local economic revitalization tax assistance program, and of the procedures necessary to obtain an exemption in accord with the terms of this article. (Ord. 3654 § 1, 2008)
362.07 Procedure for obtaining exemption.
A. Any taxpayer desiring tax exemption pursuant to the terms of this article shall apply in writing upon a form approved by the City of Meadville at the time such taxpayer secures a building permit for an intended improvement. A copy of the exemption application shall be forwarded by the City of Meadville to appropriate assessment officials of Crawford County. The appropriate assessment officials of Crawford County shall, after completion of construction, assess separately the improvement and shall calculate the amounts of the assessment eligible for tax exemption pursuant to the terms of this article. Notice of the determinations of the assessment officials shall be given to the taxpayer and to all interested local taxing authorities. Said notice shall state the amount of the assessment eligible for exemption. Appeals from the assessment for the determination of the amount eligible for exemption may be taken by the taxpayer as provided by law for general assessment appeals. The limitations upon exemption and the schedules of taxes exempted existing at the time of the grant of the building permit and the receipt of the application for exemption shall be applicable to that exemption request, and subsequent amendments to this article, if any, shall not apply to requests initiated prior to the effective date of such amendments. Provided, however, that the City of Meadville shall grant an exception for eligible improvements completed within the deteriorated area, as defined herein, in calendar years 2011 and 2012 through the effective date of the ordinance codified in this section, which otherwise would not qualify for application for such exemption provided herein. Applications related to improvements completed in years 2011 and 2012 through the effective date of the ordinance codified in this section (to be evidenced by certificates of occupancy issued during 2011 and 2012) must be submitted to the city within 90 days of such effective date of the ordinance codified in this section in order to be eligible for the tax exemption provided herein.
B. County assessment officials shall be advised of the completion of construction by the appropriate city building inspection personnel. Notice of completion shall be in writing and shall contain a certification that the completed construction complies with all applicable building, plumbing, fire, land use and related laws, rules and regulations. Said notice shall also indicate whether the subject property is exempt under the Keystone Opportunity Zone Act and for how long. The exemption herein provided shall only be applied to improvements for a period of five years beginning with the year following the year in which the improvements were completed or following the year the Keystone opportunity zone exemption, if any, terminates, whichever is later. (Ord. 3701 § 1, 2012; Ord. 3654 § 1, 2008)
362.08 Sunset provision.
This article shall remain in effect for a period of 10 years from the date of this amendment. All exemptions granted prior to the termination date hereof shall remain in full force and effect in accordance with the terms and limitations herein stated, notwithstanding the expiration of the effectiveness hereof. All applications for exemption filed prior to the termination date hereof shall be processed and, if appropriate, approved for exemption in accordance with the terms and limitations hereof, notwithstanding the termination of the effectiveness hereof prior to the expiration of any exemption granted pursuant to such applications. (Ord. 3770 § 1, 2018; Ord. 3654 § 1, 2008)