U.D. school board OKs tax resolution

UPPER DARBY >> Tax help is on the way for future commercial development in the Upper Darby.

The Upper Darby School Board adopted by an 8-1 vote a Local Economic Revitalization Tax Assistance Act (LERTA) resolution that will help offset full collection of real estate taxes for properties whose value gets reassessed after new construction for commercial/business purposes. The resolution establishes a five-year schedule outlying the exemption rate to collect taxes against the value of the newly-constructed properties – ranging from 90 percent exemption in the first year of newly assessed value down to 20 percent exemption in year five – as a way to boost the district’s tax base and promote economic growth.

Neil Desnoyers was the only board member to vote against the resolution.

New construction on commercial properties is relegated to LERTA-designated areas in certain office, C-1, C-3, and M+Izones as established by an ordinance passed by Upper Darby Township Council in 2004. The township’s LERTA ordinance has a slightly different exemption schedule for five years than the school district’s, mainly that is will not collect taxes against the new property value in year one, but the exemption between the two governing bodies is aligned with exemption rate decreases to 80, 60, 40 and 20 percent for the respective second, third, fourth and fifth years of their schedules.

Both the township and the school district will collect at the full rate after that five-year schedule has ended.

Clifton Heights and Millbourne boroughs do not have a LERTA ordinance on the books so the school district’s new resolution will not be applicable to those municipalities.