LERTA Tax Abatement
LERTA Tax Incentive Program
The Local Economic Revitalization Tax Assistance (LERTA) Program grants a partial tax abatement on improvements made to properties within the Borough limits. Property owners of residential, commercial, industrial, or any other type of property located within the Borough are eligible for a 7-year partial tax abatement on property tax increases which are a result of improvements to the property that result in an increased assessed value.
If a property owner decides to make an improvement to their property, whether it be new construction or renovation, for the first year immediately following the reassessment of the improved property, the owner will pay property taxes in the amount of the base assessment. In other words, the taxes will not increase from the base amount prior to construction.
Base Assessment: a property's assessed value prior to improvement.
In the second year, the property taxes will be calculated at the base plus 10% of the increment. For each following year, an additional 15% of the increment will be added to the base until 100% of the increment is reached.
Increment: difference between the base and the new assessed value.
| Years following reassessment | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 |
| % of increment abated |
100% | 90% | 75% | 60% | 45% | 30% | 15% | 0% |
| % of increment added to base | 0% | 10% | 25% | 40% | 55% | 70% | 85% | 100% |
APPLICATION FOR LERTA TAX ABATEMENT