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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY FARNESE, FONTANA, D. WHITE, O'PAKE, COSTA, BOSCOLA, WOZNIAK, FERLO AND PILEGGI, JUNE 9, 2010 |
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| REFERRED TO GAME AND FISHERIES, JUNE 9, 2010 |
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| AN ACT |
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1 | Amending the act of July 9, 1971 (P.L.206, No.34), entitled, as |
2 | reenacted and amended, "An act authorizing local taxing |
3 | authorities to provide for tax exemption for certain |
4 | improvements to deteriorated dwellings and for improvement of |
5 | deteriorating areas by the construction of new dwelling |
6 | units; and providing for exemption schedules and other |
7 | limitations," defining "depressed area"; and expanding |
8 | applicability of the act to certain depressed areas. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. Section 103 of the act of July 9, 1971 (P.L.206, |
12 | No.34), known as the Improvement of Deteriorating Real Property |
13 | or Areas Tax Exemption Act, reenacted and amended August 5, 1977 |
14 | (P.L.167, No.42), is amended by adding a definition to read: |
15 | Section 103. Definitions.--As used in this act: |
16 | "Depressed area" means that portion of a deteriorated |
17 | neighborhood or a deteriorating area which the governing body |
18 | determines to be in greater need of economic revitalization and |
19 | improvement than other areas of the deteriorated neighborhood or |
20 | deteriorating area. |
21 | * * * |
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1 | Section 2. Sections 201 and 202 of the act are amended to |
2 | read: |
3 | Section 201. Definitions.--As used in this article: |
4 | (1) "Deteriorated property" means a dwelling unit located in |
5 | a deteriorated neighborhood or depressed area, as hereinafter |
6 | provided, or a dwelling unit which has been or upon request is |
7 | certified by a health, housing or building inspection agency as |
8 | unfit for human habitation for rent withholding, or other health |
9 | or welfare purposes, or has been the subject of an order by such |
10 | an agency requiring the unit to be vacated, condemned or |
11 | demolished by reason of noncompliance with laws, ordinances or |
12 | regulations. |
13 | (2) "Dwelling unit" means, unless otherwise defined in the |
14 | ordinance or resolution providing for tax exemption, a house, |
15 | apartment, or group of rooms intended for occupancy as separate |
16 | living quarters by family or other groups or a person living |
17 | alone, containing a kitchen or cooking equipment for the |
18 | exclusive use of the occupants. |
19 | (3) "Improvement" means repair, construction or |
20 | reconstruction, including alterations and additions, having the |
21 | effect of rehabilitating a structure so that it becomes |
22 | habitable or attains higher standards of housing safety, health |
23 | or amenity, or is brought into compliance with laws, ordinances |
24 | or regulations governing housing standards; ordinary upkeep and |
25 | maintenance shall not be deemed an improvement. |
26 | Section 202. Deteriorated Neighborhoods and Depressed Areas; |
27 | Procedures.--(a) Each local taxing authority may by ordinance |
28 | or resolution exempt from real property taxation the assessed |
29 | valuation of improvements to deteriorated properties in the |
30 | amounts and in accordance with the schedules and limitations |
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1 | hereinafter provided. Prior to the adoption of the ordinance or |
2 | resolution authorizing the granting of tax exemptions, the local |
3 | taxing authority shall affix the boundaries of a deteriorated |
4 | neighborhood or neighborhoods or a depressed area or areas, |
5 | wholly or partially located within its jurisdiction, if any. At |
6 | least one public hearing shall be held by the local taxing |
7 | authority for the purpose of determining said boundaries. At the |
8 | public hearing the planning commission or redevelopment |
9 | authority and other public and private agencies and individuals, |
10 | knowledgeable and interested in the improvement of deteriorated |
11 | neighborhoods or depressed areas, shall present their |
12 | recommendations concerning the location of boundaries of a |
13 | deteriorated neighborhood or neighborhoods or a depressed area |
14 | or areas for the guidance of the local taxing authorities, such |
15 | recommendations taking into account the criteria set forth in |
16 | the act of May 24, 1945 (P.L.991, No.385), known as the "Urban |
17 | Redevelopment Law," for the determination of "blighted areas," |
18 | and the criteria set forth in the act of November 29, 1967 |
19 | (P.L.636, No.292), known as the "Neighborhood Assistance Act," |
20 | for the determination of "impoverished areas," and the following |
21 | criteria: unsafe, unsanitary and overcrowded buildings; vacant, |
22 | overgrown and unsightly lots of ground; a disproportionate |
23 | number of tax delinquent properties; excessive land coverage, |
24 | defective design or arrangement of buildings, street or lot |
25 | layouts; economically and socially undesirable land uses. The |
26 | ordinance shall specify a description of each such neighborhood |
27 | or area as determined by the local taxing authority, as well as |
28 | the cost of improvements per dwelling unit to be exempted, and |
29 | the schedule of taxes exempted as hereinafter provided. |
30 | (b) Two or more local taxing authorities may join together |
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1 | for the purpose of determining the boundaries of a deteriorated |
2 | neighborhood or depressed area, and such local taxing |
3 | authorities shall cooperate fully with each other for the |
4 | purposes of implementing this act. The local taxing authorities |
5 | may by implementing ordinance or resolution agree to adopt tax |
6 | exemptions contingent upon the similar adoption by an adjacent |
7 | or conterminous local taxing authority, within the limitations |
8 | provided herein. |
9 | Section 3. Section 203 of the act, amended December 30, 2002 |
10 | (P.L.2085, No.235), is amended to read: |
11 | Section 203. Exemption Schedules; Maximum Exemption.--(a) A |
12 | local taxing authority granting a tax exemption pursuant to the |
13 | provisions of this article may provide for tax exemption on the |
14 | assessment attributable to the actual cost of improvements up to |
15 | the maximum cost per dwelling unit herein specified or up to any |
16 | lesser multiple of one thousand dollars ($1,000). If a local |
17 | taxing authority by ordinance or resolution specifies a lesser |
18 | cost than the maximum provided by this act, such amount shall |
19 | not be increased by any subsequent ordinance or resolution for a |
20 | period of two years, nor shall the schedule of taxes exempted be |
21 | changed for such period. Whether or not the assessment eligible |
22 | for exemption is based upon a maximum cost or a lesser cost, the |
23 | actual amount of taxes exempted shall be in accordance with one |
24 | of the following schedules: |
25 | (1) For the first year for which improvements would |
26 | otherwise be taxable in a deteriorated neighborhood, one hundred |
27 | per cent of the eligible assessment shall be exempted; for the |
28 | second year, ninety per cent of the eligible assessment shall be |
29 | exempted; for the third through tenth years, eighty, seventy, |
30 | sixty, fifty, forty, thirty, twenty, and ten per cent, |
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1 | respectively, of the eligible assessment shall be exempted; |
2 | after the tenth year, the exemption shall terminate; |
3 | (2) For the first year for which improvements would |
4 | otherwise be taxable in a deteriorated neighborhood, one hundred |
5 | per cent of the eligible assessment shall be exempted; for the |
6 | second year, eighty per cent of the eligible assessment shall be |
7 | exempted; for the third through fifth years, sixty, forty, and |
8 | twenty per cent, respectively, of the eligible assessment shall |
9 | be exempted; after the fifth year, the exemption shall |
10 | terminate; |
11 | (3) For the first, second and third year for which |
12 | improvements would otherwise be taxable in a deteriorated |
13 | neighborhood, one hundred per cent of the eligible assessment |
14 | shall be exempted; after the third year the exemption shall |
15 | terminate; [or] |
16 | (4) For the first, second, third, fourth, fifth, sixth, |
17 | seventh, eighth, ninth and tenth year for which improvements |
18 | would otherwise be taxable in a deteriorated neighborhood, one |
19 | hundred per cent of the eligible assessment shall be exempted; |
20 | after the tenth year the exemption shall terminate[.]; or |
21 | (4.1) For the first, second, third, fourth, fifth, sixth, |
22 | seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, |
23 | fourteenth and fifteenth year for which improvements would |
24 | otherwise be taxable in a depressed area, one hundred per cent |
25 | of the eligible assessment shall be exempted; after the |
26 | fifteenth year the exemption shall terminate. |
27 | [(5)] (a.1) A local taxing authority may provide for tax |
28 | exemption on the assessment attributable to the actual cost of |
29 | construction of the dwelling unit in accordance with a schedule |
30 | established by the taxing authority, provided that the exemption |
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1 | schedule does not exceed a period of ten years in a deteriorated |
2 | neighborhood or fifteen years in a depressed area. |
3 | (b) The exemption from taxes shall be limited to the |
4 | additional assessment valuation attributable to the actual costs |
5 | of improvements to deteriorated property. The date of the |
6 | construction shall be the date of issuance of the building |
7 | permit, improvement record or other required notification of |
8 | construction. No tax exemption shall be granted under the |
9 | provisions of this article for any improvements to any dwelling |
10 | unit in excess of limitation set forth in this subsection. |
11 | (c) The exemption from taxes authorized by this article |
12 | shall be upon the property exempted and shall not terminate upon |
13 | the sale or exchange of the property, unless otherwise provided |
14 | in this article. |
15 | Section 4. Section 302 of the act is amended to read: |
16 | Section 302. Deteriorating Areas; Procedures.--(a) Each |
17 | local taxing authority may, by ordinance or resolution, exempt |
18 | from all real property taxation the assessed valuation of any |
19 | residential construction built in a deteriorating area or |
20 | depressed area from and after the effective date of this article |
21 | in the amounts and in accordance with the schedule and |
22 | limitations hereinafter provided. Prior to the adoption of the |
23 | ordinance or resolution authorizing the granting of such |
24 | exemptions from taxation, an interested municipal governing body |
25 | shall determine the boundaries of deteriorating and depressed |
26 | areas, wholly or partially located within its jurisdiction. At |
27 | least one public hearing shall be held by the municipal |
28 | governing body for the purposes of delineating said boundaries. |
29 | At the public hearings any local taxing authority, planning |
30 | commission or redevelopment authority and other public and |
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1 | private agencies and individuals, knowledgeable and interested |
2 | in the improvement of deteriorating and depressed areas, shall |
3 | present their recommendations concerning the location of |
4 | boundaries of a deteriorating area or areas or depressed area or |
5 | areas for the guidance of the municipal governing bodies, such |
6 | recommendations to take into account not only the standards set |
7 | forth in section 301, but also those set forth in the act of May |
8 | 24, 1945 (P.L.991, No.385), known as the "Urban Redevelopment |
9 | Law," for the determination of "blighted areas," and the act of |
10 | November 29, 1967 (P.L.636, No.292), known as the "Neighborhood |
11 | Assistance Act," for the determination of "impoverished areas." |
12 | The ordinance or resolution shall specify a description of each |
13 | such areas as determined by the municipal governing body, the |
14 | maximum assessment per dwelling unit which may be exempted, and |
15 | the schedule of taxes exempted as hereinafter provided. |
16 | (b) Two or more municipal governing bodies may join for the |
17 | purpose of determining the boundaries of a deteriorating or |
18 | depressed area and to establish the maximum cost per dwelling |
19 | unit, and such municipal governing bodies shall cooperate fully |
20 | with each other for the purpose of implementing this article. |
21 | The local taxing authorities may, by implementing ordinance or |
22 | resolution, agree to adopt tax exemptions contingent upon the |
23 | similar adoption by an adjacent or coterminous local taxing |
24 | authority, within the limitations provided herein. |
25 | (c) An area can be established as being deteriorating and |
26 | decayed or depressed even though the area so designated is not a |
27 | slum consisting exclusively of tangible physical blight. Any |
28 | such deteriorating or depressed area may include buildings or |
29 | improvements not in themselves blighted or dilapidated. |
30 | Section 5. Section 303 of the act, amended December 30, 2002 |
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1 | (P.L.2085, No.235), is amended to read: |
2 | Section 303. Exemption Schedule; Maximum Exemption.--(a) A |
3 | local taxing authority granting a tax exemption pursuant to the |
4 | provisions of this article may provide for tax exemption on the |
5 | assessment attributable to the actual cost of construction of |
6 | the new dwelling unit in accordance with one of the following |
7 | schedules: |
8 | (1) For the first, second and third year for which said |
9 | newly-constructed dwelling unit or units would otherwise be |
10 | taxable in a deteriorating area, one hundred per cent of the |
11 | eligible assessment shall be exempted; after the third year the |
12 | exemption shall terminate; |
13 | (2) For the first year for which said newly-constructed |
14 | dwelling unit or units would otherwise be taxable in a |
15 | deteriorating area, one hundred per cent of the eligible |
16 | assessment shall be exempted; for the second year, ninety per |
17 | cent of the eligible assessment shall be exempted; for the third |
18 | through tenth years, eighty, seventy, sixty, fifty, forty, |
19 | thirty, twenty, and ten per cent, respectively, of the eligible |
20 | assessment shall be exempted; after the tenth year, the |
21 | exemption shall terminate; [or] |
22 | (3) For the first, second, third, fourth, fifth, sixth, |
23 | seventh, eighth, ninth and tenth year for which said newly- |
24 | constructed dwelling unit or units would otherwise be taxable in |
25 | a deteriorating area, one hundred per cent of the eligible |
26 | assessment shall be exempted; after the tenth year the exemption |
27 | shall terminate[.]; or |
28 | (3.1) For the first, second, third, fourth, fifth, sixth, |
29 | seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, |
30 | fourteenth and fifteenth year for which said newly constructed |
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1 | dwelling unit or units would otherwise be taxable in a depressed |
2 | area, one hundred per cent of the eligible assessment shall be |
3 | exempted; after the fifteenth year the exemption shall |
4 | terminate. |
5 | [(4)] (a.1) A local taxing authority may provide for tax |
6 | exemption on the assessment attributable to the actual cost of |
7 | construction of the new dwelling unit in accordance with a |
8 | schedule established by the taxing authority, provided that the |
9 | exemption schedule does not exceed a period of ten years in a |
10 | deteriorating area or fifteen years in a depressed area. |
11 | (b) The exemption from taxes shall be limited to the |
12 | assessment valuation attributable to the cost of construction of |
13 | the new dwelling unit not in excess of the uniform maximum cost |
14 | per dwelling unit specified by the municipal governing body. The |
15 | exemption shall commence in the tax year immediately following |
16 | the year in which the building permit is issued. No tax |
17 | exemption shall be granted under the provisions of this article |
18 | for the construction of any dwelling unit in excess of the |
19 | uniform maximum cost specified by the municipal governing body. |
20 | (c) The exemption from taxes authorized by this article |
21 | shall be upon the newly-constructed dwelling unit or units |
22 | exempted and shall not terminate upon the sale or exchange of |
23 | the property, unless otherwise provided in this article. |
24 | Section 6. This act shall take effect immediately. |
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