February 26, 2015

MST’s Proposed LERTA

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
Abatement Tax Increase Savings
Year 1 100% $0 $10,000
Year 2 80% $2,000 $8,000
Year 3 60% $4,000 $6,000
Year 4 40% $6,000 $4,000
Year 5 20% $8,000 $2,000
Year 6 0% $10,000 $0
    Total Savings $30,000

That’s $30,000 over 5 years that Acme Business can use
to pay expenses such as advertising and business loans!