LERTA details explained
The LERTA Act of 1977, described as "a creative way to implement strategic financial opportunities for older communities that desire property owner-driven revitalization," includes the following details:
- While the specific terms of the tax abatement is decided at the local level, the state enabling legislation allows municipalities to exempt the value of all improvements made to a property from local taxes for a certain period of time not to exceed 10 years.
- Unlike other tax abatement programs, properties still pay a local tax, but do not see any increase in local taxes based upon the value of renovations made to the property within the LERTA boundary.
- By not immediately taxing the property owner on improvements made, the municipality is giving the property owner the opportunity to recuperate money used for revitalization and to invest more money into further renovations and improvements. LERTA is particularly helpful to communities that may not have funding for an complete revitalization project.
- Any applicant whose real estate or other lienable charge for any property is not paid by the due date shall forfeit all eligibility under the program.