City, district support LERTA
Washington School Board and City Council held a joint public hearing Monday to discuss renewing residential property tax breaks in the city.
No one from the public attended the meeting. Both boards voiced support for renewing Local Economic Revitalization Tax Assistance, which expired in 2005.
LERTA would give residential property owners a 100 percent break on any increase in taxes that would stem from improvements, including roofing, siding and windows. LERTA could also be used for any new structure built on an existing lot in the city. The program would run for five years.
“We want to encourage improvements to property and new construction,” said school board solicitor Ken Baker, who gave the boards most of the details about LERTA.
The LERTA resolution calls for homeowners to apply for building permits for improvements or new construction. They must apply for the LERTA within 60 days of getting the permit, Baker said. If they receive the assistance, the tax breaks for property owners will last three years.
“It does carry forward to new buyers,” he said.
The resolution has a specific formula to determine how much homeowners can spend on improvements or building a new residence. However, the formula is equal to a maximum $100,000, and Baker said it would be easier just to include that dollar figure in the resolution.
Mayor Sonny Spossey and Council member Matt Staniszewski questioned whether the LERTA had to be capped at that amount.
Baker and city solicitor Lane Turturice said they would look into whether that number had to be capped. They are also checking into whether there can be a different maximum dollar figure for improvements than there is for new construction.
Everyone who owns a residence in the city, including landlords, will be eligible for the LERTA, Baker said.
However, to qualify, all taxes, water, sewer and trash must be paid on time, he said.
If any of those is not paid on time during the three years the property owner gets the assistance, then the tax breaks would end, he said.
Both sides anticipate votes on the LERTA within the next 45 days.
Join the Observer-Reporter’s conversation about education at our blog at http://www.observer-reporter.com/or/behinddesk/
No one from the public attended the meeting. Both boards voiced support for renewing Local Economic Revitalization Tax Assistance, which expired in 2005.
LERTA would give residential property owners a 100 percent break on any increase in taxes that would stem from improvements, including roofing, siding and windows. LERTA could also be used for any new structure built on an existing lot in the city. The program would run for five years.
“We want to encourage improvements to property and new construction,” said school board solicitor Ken Baker, who gave the boards most of the details about LERTA.
The LERTA resolution calls for homeowners to apply for building permits for improvements or new construction. They must apply for the LERTA within 60 days of getting the permit, Baker said. If they receive the assistance, the tax breaks for property owners will last three years.
“It does carry forward to new buyers,” he said.
The resolution has a specific formula to determine how much homeowners can spend on improvements or building a new residence. However, the formula is equal to a maximum $100,000, and Baker said it would be easier just to include that dollar figure in the resolution.
Mayor Sonny Spossey and Council member Matt Staniszewski questioned whether the LERTA had to be capped at that amount.
Baker and city solicitor Lane Turturice said they would look into whether that number had to be capped. They are also checking into whether there can be a different maximum dollar figure for improvements than there is for new construction.
Everyone who owns a residence in the city, including landlords, will be eligible for the LERTA, Baker said.
However, to qualify, all taxes, water, sewer and trash must be paid on time, he said.
If any of those is not paid on time during the three years the property owner gets the assistance, then the tax breaks would end, he said.
Both sides anticipate votes on the LERTA within the next 45 days.
Join the Observer-Reporter’s conversation about education at our blog at http://www.observer-reporter.com/or/behinddesk/
Labels: LERTA
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11:54 AM
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