LERTA Tax Incentive

The Local Economic Revitalization Tax Assistance (LERTA) program, authorized by Pennsylvania Act 76 of 1977 (P.L. 237; 72 P.S. §4722) and Ordinance No.731 by the Lower Moreland Township Board of Commissioners, is a creative way to encourage owner-driven revitalization and new construction in Lower Moreland Township. Properties that qualify for LERTA still pay a local tax but do not see an immediate increase in local real estate taxes based upon the value of improvements made to the property within the LERTA boundary. By not immediately taxing the property owner on improvements made, the Township grants property owners the opportunity to recuperate the money used for redevelopment and to stimulate investment into further renovations and improvements.

“Improvement” is defined as repair, construction or reconstruction, including alterations or additions, having the effect of rehabilitating an industrial, commercial or other business property owned by an individual, association or corporation located within the designated area so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances or regulations governing such standards; “Improvements” does not include any ordinary upkeep or maintenance.

The LERTA program creates a graduated increase in tax payments for any LERTA qualifying property located in the designated LERTA district that experiences an increase in the assessed value of the property as a result of an improvement or new construction. The LERTA abatement does NOT make a property tax-free. Approved LERTA property owners continue to pay their real estate taxes, but any tax assessment increase to the property will be eligible for the tax abatement program over the next ten (10) years. Real estate taxes on the new improvements/construction will increase based on the schedule outlined in the Ordinance. Property owners will pay 100% of the tax increase for all subsequent years after the tenth and final year of the abatement. Year 1 of tax exemption for a particular approved LERTA property shall commence following completion of construction.

Any property owner desiring tax exemption shall COMPLETE and SUBMIT a LERTA Tax Abatement Application to the Lower Moreland Township Code Enforcement Department within sixty (60) days following the date of issuance of a building permit. A copy of the exemption request shall then be forwarded to all three local taxing authorities for consideration. Each local assessment agency shall, after completion of the new construction or improvement, assess separately the new construction or improvement of approved properties and calculate the amounts of the assessment eligible for tax exemption, in accordance with the limits established by the local taxing  authorities. The taxpayer and the local taxing authorities will then be notified of the reassessment and amounts of the assessment eligible for exemption under LERTA.