Senate advances bill to provide tax abatement for improvements, new construction on blighted properties

The State Senate advanced a bill Tuesday that would allow local taxing authorities to provide a tax exemption for up to 10 years for improvements and new construction on blighted properties.

Senate Bill 352 would give municipalities a new tool for transforming blighted properties and focuses on mixed-use redevelopment, including both residential and non-residential uses, to support the development of more vibrant communities, Sen. Judy Ward (R-30) said.

“A number of blighted properties throughout the state hold great potential for future use, and this bill can play a role in helping to regenerate these properties and improve the quality of life for local residents,” Ward said. “The bill would not create any sort of new mandate. It would simply give municipalities another option to rehabilitate the abandoned and dilapidated properties that create a dangerous eyesore in the community.”

For a project to be eligible for the tax abatement, all zoning ordinances must be observed, all code violations must be cleared, and the value of the property must increase by at least 25 percent. The property owner must also pay any delinquent taxes related to the subject property. Projects that receive any other property tax abatement or relief from local or state programs would be ineligible to participate in the new program.

Senate Bill 352, which is supported by the Housing Alliance of Pennsylvania, was sent to the House of Representatives for consideration.