East Franklin Township Solicitor Ty Heller and County Planning and Development Executive Director Rich Palilla discuss the LERTA ordinance at a public meeting specifically on the subject Thursday night. The ordinance was unanimously passed by supervisors.
by Jonathan Weaver
East Franklin Township Board of Supervisors passed their first ordinance of 2016 Thursday night, but it’s a proposal many communities have recently discussed.
The abatement or “temporary exemption from real estate taxes” through the Local Economic Revitalization Tax Assessment (LERTA) Act was proposed in an effort to increase real estate interest in deteriorated properties left in the municipality.
While township ordinances previously allowed a two-year tax abatement schedule on any residence or business that increased its property value, the new ordinance offers relief on a 10-year scale, with taxes increases gradually by 10 percent each year.
The abatement will only apply to the deteriorated property located in the improvement area, and does not terminate upon sale, transfer or exchange of the property. Deteriorated property is generally defined as any residential, industrial, commercial property area that is unsafe for living standards or has become an economic or social liability.
Solicitor, Ty Heller said after the unanimous vote in favor of the ordinance that the vote echoed that made in more than a dozen other Armstrong County municipalities.
“(East Franklin Township) is following in the footsteps of around 15 municipalities in the county that have enacted this already, and it is done to encourage growth,” Heller said.
County Planning & Development Executive Director, Rich Palilla said township growth depends on several factors, including the local economy
“We kind-of look at this as another tool in the toolbox, an incentive, to try and induce development. I think what (township supervisors are) trying to do is have a program in place to provide an incentive, if someone wants to build in East Franklin Township,” Palilla said.
When asked about an estimated time that it would take to see the influence of the ordinance locally, Vice Chairman Dan Goldinger said improvement might only be a few months away.
“I could see improvement by summer, or late summer,” Goldinger said.
Public residents who also attended the first public meeting of the year also seemed to agree with the newly-approved tax abatement as a positive, enticing adjustment to generate wealth locally.
Residents curious if their property qualifies under the new ordinance should contact each of the local taxing authorities by submitting a written request on the form provided at the township municipal building. The form is required to be submitted at the time the owner acquires a building permit.
LERTA tax abatements were passed in Manor and Bethel Townships last month. Final abatement is in-the-hands of Armstrong School District board directors and Armstrong County Commissioners.