SB 352 — An Act authorizing local taxing authorities to provide for tax exemption incentives for certain deteriorated industrial, commercial, business and residential property and for new construction in deteriorated areas of communities; providing for an exemption schedule; and establishing standards and qualifications.

PRIOR PRINTER'S NO.

342 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1021 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

WARD, YUDICHAK, STEFANO AND BROWNE, MARCH 4, 2019 SENATORREFERRED J.TO URBAN AFFAIRS AND HOUSING, MARCH 4, 2019 AN ACT Authorizing local taxing authorities to provide for tax exemption incentives for certain deteriorated industrial, commercial, business and residential property and for new construction in deteriorated areas of communities;

WARD,providing URBAN AFFAIRS AND HOUSING, AS AMENDED, JUNE 19, 2019 AN ACT Authorizing local taxing authorities to provide for taxan exemption incentivesschedule; for certain deteriorated industrial, commercial, business and residential property and for new construction in deteriorated areas of communities;

providingand qualifications.nestablishing schedule;standards and qualifications.

and establishing standards and The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

(i) ascertained to be a public nuisance due to physical condition or use, regarded as a public nuisance at common law and deemed to be a danger to public health, safety and welfare or public nuisance as regulated by a locally adopted property maintenance code and OR, IF NO <-- SUCH CODE EXISTS, any compatible code enacted by the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act;

or (ii) the condition of which contains an attractive nuisance created by physical condition, use or occupancy, including, but not limited to, an abandoned well, shaft, <-- basement, excavation or unsafe fence or other structure, or a safety risk, including, but not limited to, unauthorized entry or unsafe equipment.

ABANDONED(2) WATERA <--dwelling WELLS,that SHAFTS,has BASEMENTS,been EXCAVATIONScondemned ANDor UNSAFEotherwise FENCESdeemed ORunfit OTHERfor STRUCTURES,occupancy ORor WHICHuse CONTAINSby ANthe UNAUTHORIZEDlocal 20190SB0352PN1021authority having jurisdiction due to dilapidated, unsanitary, unsafe, 20190SB0352PN0342 - 2 - ENTRY,vermin-infested UNSAFEcondition EQUIPMENTor ORlacking OTHERin SAFETYthe RISK.facility and equipment as required by the Pennsylvania Construction Code Act.

(2)(3) A dwellingstructure thatdetermined hasto beenbe condemneda orfire otherwisehazard deemed unfit for occupancy or usethat bycould theeasily localcatch authorityfire having jurisdiction due to dilapidated, unsanitary, unsafe, <-- OR vermin-infested condition or THATcause ISa lackingfire inand theendanger <--public facilityhealth, FACILITIESsafety and equipmentwelfare. as required by the <-- Pennsylvania Construction Code Act.

(3) A structure determined BY THE LOCAL AUTHORITY HAVING <-- JURISDICTION to be a fire hazard or OTHERWISE that could <-- easily catch fire or cause a fire and endanger public health, safety and welfare.

(6) A vacant or unimproved lot or parcel of ground on <-- which THAT IS SUBJECT TO a municipal lien for the cost of <-- demolition of a structure previously located on the property has not been paid AND FOR WHICH NO PAYMENTS ON THE LIEN HAVE <-- BEEN MADE for a period of 12 months.

(7) A vacant or unimproved lot or parcel of ground on which the total municipal liens for delinquent real estate and property tax or any other type of municipal claim are greater than 150% of the fair market value of the property as 20190SB0352PN1021 - 3 - established by the board of assessment appeals or other body with legal authority to determine the taxable value of the property.

20190SB0352PN0342 - 3 - "Deteriorated area." An area designated by a municipal corporation to consist of blighted property.

"Mixed-use housing and development." Any urban, suburban, village development or single building that combines residential, commercial, cultural, institutional or industrial 20190SB0352PN1021 - 4 - uses to provide more efficiency for the community in terms of space, transportation and economic development.

The 20190SB0352PN0342 - 4 - term includes a building code, housing code and public safety code.

(b) Boundaries.--Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the 20190SB0352PN1021 - 5 - municipal corporation must affix the boundaries of the deteriorated area, wholly or partially located within its jurisdiction, if any.

(c) Public hearing.-- (1) At least one public hearing shall be held by the municipal corporation for the purpose of determining the 20190SB0352PN0342 - 5 - boundaries of a deteriorated area.

(2) The local taxing authorities may, by implementing 20190SB0352PN1021 - 6 - ordinances or resolutions, agree to adopt tax-exemption schedules contingent upon the similar adoption by an adjacent local taxing authority or by a local taxing authority with mutual jurisdiction, within the limitations provided under this act.

20190SB0352PN0342 - 6 - (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.

(5) For the seventh year for which new construction or 20190SB0352PN1021 - 7 - improvements would otherwise be taxable, 45% of the eligible assessment shall be exempted.

(7) For the ninth year for which new construction or 20190SB0352PN0342 - 7 - improvements would otherwise be taxable, 15% of the eligible assessment shall be exempted.

(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 20190SB0352PN1021 - 8 - 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 20190SB0352PN0342 - 8 - common pleas.

(1) Statement of tax obligations, signed by the 20190SB0352PN1021 - 9 - applicant and the local taxing authority and notarized.

(3) An itemized cost estimate for the new construction 20190SB0352PN0342 - 9 - or improvement.

(c) County assessment office.-- (1) A copy of the exemption request shall be forwarded 20190SB0352PN1021 - 10 - to the county assessment office.

The county assessment office shall, after completion of the new construction or improvement, assess separately the new construction or improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the local taxing authorities and notify the 20190SB0352PN0342 - 10 - taxpayer and the local taxing authorities of the reassessment and amounts of the assessment eligible for exemption.

20190SB0352PN1021 - 11 - (2) The property receives tax relief through a State program, except as provided in subsection (d).

(3) The property owner or developer is delinquent on property taxes related to the subject property, unless the delinquent taxes are paid prior to construction or payment of delinquent taxes has been arranged with the local taxing 20190SB0352PN0342 - 11 - authority in accordance with an installment plan.

20190SB0352PN1021 - 12 - (7) Animal hospitals and animal sales.

20190SB0352PN0342 - 12 - (d) Exception.--The amount of assessment eligible for exemption under this act shall be offset by the amount of property tax rebate received under Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.

or (5) any other transaction excluded from the realty transfer tax under Article XI-C of the act of March 4, 1971 20190SB0352PN1021 - 13 - (P.L.6, No.2), known as the Tax Reform Code of 1971.

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