LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE ACT (L.E.R.T.A.)
NOTICE TO TAXPAYERS
Under the provisions of the Local Economic Revitalization Tax Abatement (L.E.R.T.A.) Program, 72 P.S. §4722 et seq., you may be entitled to a property tax exemption on your contemplated alterations of or new construction on deteriorated industrial, commercial, or other business property. Applications for exemption may be obtained from the Upper Darby School District (UDSD) Business Office or online at www.upperdarbysd.org (Departments==>Business OfficeèLerta)
The L.E.R.T.A. Program was established on December 1, 1977, with the purpose of promoting new construction in and improvements to economically depressed areas. It authorizes local tax authorities to provide tax abatements for improvements, including new construction, performed on certain deteriorated industrial, commercial, or other business properties. The UDSD Board of School Directors passed a Resolution to adopt the L.E.R.T.A. Program within Upper Darby Township on January 8, 2019. For more information about tax abatements and how they are calculated, please see the January 8, 2019, Resolution. You may request a copy from the District’s Business Office or view it the online.
Deteriorated commercial, industrial, and other business properties that are undergoing new construction or improvements are eligible for tax abatement under the L.E.R.T.A. Program. A deteriorated property must be located in a Deteriorated Area as defined by Upper Darby Township Ordinance No. 2942 (see map), or otherwise qualify pursuant to the District’s January 8, 2019 Resolution.
New Construction and Improvements:
These include new construction, as well as significant repair, construction or reconstruction. The above include alterations and additions. All such new construction or improvements must have the effect of increasing the assessed value and rehabilitating a deteriorated property so that it becomes habitable or obtains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances, or regulations governing such standards. Ordinary upkeep and maintenance do not qualify as an improvement.
The expectation is that in order to qualify for a tax abatement under L.E.R.T.A., in addition to any other requirements, the actual cost of new construction or improvements must equal or exceed $25,000.00.
When evaluating the application in terms of job creation, the District expects that the new construction or improvements will reasonably create at least a fifteen percent (15%) increase in new, permanent jobs at the site following completion of the new construction or improvement, and that such new jobs will be local. For purposes of this evaluation, a job shall qualify as “local” if it is held by a resident of the Upper Darby School District who have a current residential address within UDSD boundaries.
APPLICATION INFORMATION AND INSTRUCTIONS
The applicant must file this application with the UDSD Business Office and the Assessment Office prior to or within one (1) business day following issuance of the Construction Permit for new construction or improvements, in accordance with the Local Economic Revitalization Tax Assistance (L.E.R.T.A.) Program. For the District to consider an application, there must be a copy of the Construction Permit attached to the application. If you submit the application before you receive the Construction Permit, please bring copies of the permit to the UDSD Business Office and the Assessment Office as soon as it is issued.
You must submit a separate application to each local taxing authority from which you are seeking a tax abatement. Please be advised that the application period expires on August 1, 2021.
In the event of reassessment by the county, city, or District, tax abatement shall be applied proportionally to any new assessment as long as the tax abatement period for the property in question has not expired or altered. This application is to ensure that each property affected by tax abatement receives the same percentage of tax benefits before and after any citywide assessment.