Legislation recently passed by the Pennsylvania General Assembly would allow local taxing authorities to provide tax exemptions of up to 10 years for any improvements or new construction on blighted properties in deteriorated areas.
Senate Bill 352 focuses on mixed-use redevelopment for both nonresidential and residential use. The amount of the exemption would decrease by between 5 percent to 15 percent annually, then expire after the 10th year.
To qualify for the exemption, property owners must pay all delinquent taxes associated with the property, and projects must observe zoning ordinances, have code violations cleared, and have the value of the property increase by at least 25 percent.
“A number of blighted properties throughout the state hold great potential for future use, and this bill can play a role in helping to restore these properties and improve the quality of life in local communities,” Sen. Judy Ward (R-Blair County), who wrote the bill, said. “The bill does not create any new requirements; it only gives municipalities another option to rehabilitate blighted properties that create a dangerous eyesore in the community.”
The bill has been sent to Gov. Tom Wolf for his signature. It has the support of the Housing Alliance of Pennsylvania.