LERTA (Commercial Tax Incentive)
The Local Economic Revitalization Tax Assistance (LERTA) Program, authorized by Pennsylvania Act 76 of 1977, and Ordinance 2017-03 by the Steelton Borough Council, is a creative way to encourage owner-driven revitalization and new construction in Steelton Borough. Properties that qualify for LERTA still pay real estate taxes on the currently assessed value of their property, but receive a break on any new real estate taxes of up to 100% for ten years. By not immediately taxing the property owner on improvements made, Steelton Borough grants them the opportunity to recuperate the money used for redevelopment and to stimulate further commercial renovations and improvements. Steelton Borough is open for business and encourages developers and businesses to open up shop in our community. The Steelton LERTA program provides new and existing property owners in the C-1 Town Center Commercial District with a ten year, 100% break on new real estate taxes that result from new construction or renovations to existing property. Property owners in the Non-C-1 District receive a similar break on new real estate taxes on new construction/improvements on the following schedule:
- 100% break on new real estate taxes years 1 through 5
- 80% break on new real estate taxes year 6
- 60% break on new real estate taxes year 7
- 40% break on new real estate taxes year 8
- 20% break on new real estate taxes year 9
- Pay the full amount of taxes on improved property in year 10.
The LERTA abatement does NOT make a property tax free. It only applies to news real estate taxes that result from increased property value. Any commercial property owner desiring a tax exemption shall COMPLETE and SUBMIT a LERTA Tax Abatement Application to the Steelton Borough Codes Office PRIOR to the start of construction. A copy of the exemption request shall then be forwarded to all three local taxing authorities for consideration (Steelton Borough, Steelton-Highspire School District, and Dauphin County). Each local assessment agency shall, after the completion of the new construction or improvement, consider separately the new construction or improvement of approved properties and calculate the amounts of the assessment eligible for tax exemption according to limits established by the local authority. The taxpayer and local taxing authorities will then be notified of the reassessment and amounts of the assessment eligible for exemption under LERTA. Improvements that do not result in an increased assessed value on subject property will not qualify for the LERTA. *LERTA will only be granted when a LERTA application accompanies a building or use registration permit; benefits WILL NOT be applied retroactively to projects started without proper permits.