Local Economic Revitalization Tax Assistance (LERTA)

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LERTA Program Summary

  • LERTA was established to allow local taxing authorities to exempt improvements to a business property if such property is located in a deteriorated area

Participants

  • Any city, county, borough, incorporated town, township, institutional district or school district having the authority to levy real property taxes can participate

Applicants

  • Eligible persons can apply for a tax exemption using the local tax authority’s exemption request form

Uses and Purposes of Funding

  • Property improvements eligible for exemption include:
    • Repairs

    • Construction or reconstruction, including alterations and additions

    • Rehabilitating a deteriorated property to make it habitable or to attain a higher standard of safety

    • Improvements required to alleviate health concerns

    • Economic use or amenity

    • Improvements necessary to comply with laws, ordinances or regulations governing such standards

Amounts

  • The local tax authority may provide for an exemption on the assessment attributable to the actual cost of the improvements or up to any maximum cost uniformly established by the municipal governing body. Such maximum costs shall uniformly apply to all eligible deteriorated property within the local taxing authority jurisdiction.

Terms

  • The local tax authority shall establish an exemption schedule not to exceed 10 years and shall specify the portion of improvements to be exempted each year. Savings will be realized on a sliding scale beginning with 100% in year one and decreasing 10% annually until the tenth year.

Example                                                              

 clientuploads/Funding/Funding Table LERTA.jpg

Land value at beginning
of project (33.54 acres)
= $1,039,550

Hddd

Value of improvements on
construction of a 342,160

square foot facility
= $8,660,000

aadasf Total project costs
= $9,699,550