February 26, 2015
February 23, 10am at the Whispering Pines:
Q&A Session regarding the proposed LERTA. Call 570-223-8920 ext.100 to reserve your seat now.
Local Economic Revitalization Tax Assistance Act (LERTA)
What is a LERTA?
- Local Economic Revitalization Tax Assistance Act (LERTA) – Allows local taxing authorities (County, Municipal, School District) to grant tax abatements on improvements made to business properties in designated areas.
- Click here to view the Local Economic Revitalization Tax Assistance Act of 1977.
- Proposed Tax Abatement is over 5 years starting with 100% and decreasing 20% per year.
Why do we need a LERTA?
- Encourages businesses in the designated areas to make improvements
- Enables the township and County to attract new investment in the region
- Job growth. Employed local people spend locally
What properties qualify for the proposed LERTA?
- Only commercial and industrial properties
o Entire Commercial 1 (C1) zoning district
- Route 209 (“Main Street”)
o Entire Commercial 2 (C2) zoning district
- Route 402 (Resica Falls Road)
o Entire Industrial (I) zoning district
- Winona Falls Road (Industrial)
What are the next steps for our LERTA?
- Informal meeting with property owners and Township Supervisors, County Commissioners, and School Board Members on Saturday, February 28th at 10am at the Whispering Pines Banquet Hall
- Public Hearing to be scheduled
o All taxing authorities in agreement at Public Hearing can adopt LERTA
EXAMPLE: If Acme Business pays a total tax bill of $20,000 a year (School, County, Municipal and library) but puts on an addition to their business building, (such as adding a 2nd floor, etc) which increases the value of their building, it will increase their tax assessment, and increase their taxes to $30,000/year.
(an increase of $10,000/year)
|Sample tax increase of $10,000
That’s $30,000 over 5 years that Acme Business can use
to pay expenses such as advertising and business loans!