TRAFFORD BOROUGH IMPLEMENTS LERTA ORDINANCE TO IMPROVE ECONOMIC DEVELOPMENT

For Official Release
November 13, 2024

As part of their ongoing efforts to help improve economic development in the town’s business district, Trafford Borough Council passed ordinance 2-2024 in June 2024. The ordinance provides a tax abatement program called the Local Economic Revitalization Tax Assistance (LERTA) to assist in the improvement of deteriorated industrial and commercial properties within specific boundaries set by Council in November 2023.

The General Assembly of Pennsylvania passed Act No. 76 of 1977, known as the LERTA Act, which authorizes local taxing authorities to provide for tax exemption for certain deteriorated industrial, commercial, and other business properties.
Trafford Borough’s LERTA program provides scaled tax abatement over ten years. Approved properties per Ordinance 2-2024 would have the opportunity of property improvement tax abatement percentage of the following:

1. One hundred (100%) percent exemption for the first year;
2. Ninety (90%) percent exemption for the second year;
3. Eighty (80%) percent exemption for the third year;
4. Seventy (70%) percent exemption for the fourth year;
5. Sixty (60%) percent exemption for the fifth year;
6. Fifty (50%) percent exemption for the sixth year;
7. Forty (40%) percent exemption for the seventh year;
8. Thirty (30%) percent exemption for the eighth year;
9. Twenty (20%) percent exemption for the ninth year;
10. Ten (10%) percent exemption for the tenth year;
After the tenth year, exemption from the taxes granted under the ordinance will terminate.

At the June 2024 Council Meeting, Borough Manager Jaime Peticca stated “There will be an application process and guidelines to be met to qualify for the exemption as explained in the ordinance. The streets that apply to this are Brinton Avenue and Cavitt Avenue down from Sixth Street to First Street, including the Commerce Center and the Liberty Property Parcel.”

Council members added additional comments:

Councilmember Bayko: “The property will be taxed as it is, and any new improvements are what qualifies as tax exemptions.”

Councilmember Perovich: “Other local municipalities have implemented this tax exemption and have been very successful in their revitalization efforts.”

Councilmember Cardiff: “This is something that has been discussed in the past and an opportunity presented itself to execute this change. I am very happy to see this item considered.”

For questions or qualification details, please contact the borough office during normal business hours.