The Patriot News is reporting that the City will be holding a meeting tonight to discuss a possible new LERTA tax-abatement program in the City. LERTA (short for “Local Economic Revitalization Tax Assistance Act”) is a state law that permits local jurisdictions (counties, municipalities and school districts) to offer real estate tax incentives to spur development and redevelopment in the local jurisdiction.
LERTA only exempts from taxation the value of the new construction; the owner continues to pay all existing real estate taxes. No other taxes (federal, state or local) are affected by the program.
While LERTA tax abatements remain controversial in some circles, they are an effective tool for municipalities to fight blight and spur economic development (when used correctly).
Interested to learn more about LERTA? Check out my summary of the program here.