LERTA Program
Overview
The Local Economic Revitalization Tax Assistance Act (LERTA) of 1977 allows taxing authorities to exempt new construction and/or improvements to business properties from increased real estate taxes in selected areas of a community to encourage investment by the private sector.
The tax exemption only applies to the additional assessment valuation to the actual costs of new construction of improvements to deteriorated property.
Northampton LERTA Program
Northampton Township enacted the program on August 27, 2014 for a period of five years, concluding on August 27, 2019. Any property tax exemptions granted under the provisions of the LERTA Ordinance shall be permitted to continue according to the exemption schedule even if the ordinance expires or is repealed.
Designated Areas
Properties in the LERTA Boundaries Map are eligible for the LERTA program.
Exemption Amount
The schedule of real property taxes to be exempted shall be in accordance with the following percentage of the assessed valuation of new construction of improvements to an eligible property:
| Tax Year(s) Following Completion of Construction | Exemption Portion of Assessed Valuation |
|---|---|
| 1 | 100% |
| 2 | 100% |
| 3 | 100% |
| 4 | 100% |
| 5 | 100% |
Business Process
Any person who is an owner of an eligible property and who desires tax exemption pursuant to the LERTA Ordinance shall apply in writing for such exemption on a form to be provided by Northampton Township at Building and Codes Department in the Administration Building.
The application must be received by the Building and Codes Department within sixty (60) days following the date of issuance of a building permit for any new construction or Improvements.