The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Authority." An industrial and commercial development authority or a redevelopment authority.
"Finance officer." The legally authorized agent of a municipality or school district responsible by law for receipt and disbursement of the revenues of the municipality or school district.
"Governing body." The legislative body of a municipality authorized by law to levy taxes. The term includes the board of directors of a school district authorized by law to levy taxes.
"Industrial and commercial development authority." An authority created pursuant to the act of August 23, 1967 (P.L. 251, No. 102), known as the Industrial and Commercial Development Authority Law.
"Issuing authority." The industrial and commercial development authority, municipal authority or redevelopment authority that issues tax increment bonds or notes in accordance with section 9.
"Municipal authority." A municipal authority organized pursuant to the act of May 2, 1945 (P.L. 382, No. 164), known as the Municipality Authorities Act of 1945.
"Municipality." A county, city, borough, incorporated town, township or home rule municipality.
"Planning commission." A planning commission as defined by the act of May 24, 1945 (P.L. 991, No. 385), known as the Urban Redevelopment Law.
"Project." The undertakings and activities of an authority in a tax increment district for the elimination and prevention of the development or spread of blight, which may include property acquisition, clearance, redevelopment, rehabilitation or conservation in a tax increment district, or a combination or part thereof in accordance with a project plan.
"Project costs." Any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred which are listed in a project plan as costs of public works or improvements or residential, commercial or industrial development or revitalization within a tax increment district, plus any costs incidental thereto. Project costs include, but are not limited to:
(1) Capital costs, including the actual costs of the construction of public works or improvements or residential, commercial or industrial development or revitalization, new buildings, structures and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures; the acquisition, upgrade or rehabilitation of machinery and equipment; and the acquisition, clearing and grading of land. Capital costs also include the actual cost of the construction, rehabilitation or repair of publicly owned infrastructure improvements located outside the boundaries of a tax increment district which are of direct benefit to a project.(2) Financing costs, including all costs of issuance of tax increment bonds or notes, reserve funds for tax increment bonds or notes, all interest paid to holders of evidences of indebtedness issued to pay for project costs, and any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity.(3) Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the authority of real property within a tax increment district for consideration which is less than its cost to the authority.(4) Professional service costs, including those costs incurred for architectural, planning, engineering and legal advice and services.(5) Administrative costs, including reasonable charges for the time spent by employees of a municipality or an authority in connection with the implementation of a project plan.(7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax increment districts and the implementation of project plans.(8) Costs which are found to be necessary or convenient to the creation of tax increment districts or the implementation of project plans, or for the reimbursement of prior expenditures made for any of the costs under this definition."Project plan." The properly approved plan for the development or redevelopment of a tax increment district, including all properly approved amendments to the plan.
"Redevelopment area." Any area, whether improved or unimproved, which a planning commission may find to be blighted because of the existence of the conditions enumerated in section 2 of the act of May 24, 1945 (P.L. 991, No. 385), known as the Urban Redevelopment Law, so as to require redevelopment under the provisions of the Urban Redevelopment Law or this act.
"Redevelopment authority." An authority created pursuant to the act of May 24, 1945 (P.L. 991, No. 385), known as the Urban Redevelopment Law.
"School district." The term includes school districts of all classes as defined by the act of March 10, 1949 (P.L. 30, No. 14), known as the Public School Code of 1949.
"Tax increment." Generally, the incremental tax revenues, determined with reference to the tax increment base, resulting from the increase in property values or from the increase in commercial activity as a result of a project. More specifically, the term includes the following:
(1) The incremental tax revenues resulting from an increase in the total market value of taxable real property situated in a tax increment district and an increase in the business use and occupancy of such taxable real property. This paragraph applies only to ad valorem taxes on real property and tax imposed by the governing body on the use and occupancy of real property.(2) The payment in lieu of taxes assigned to or agreed to be paid by governmental entities or nonprofit organizations with property situated or otherwise assignable to a tax increment district. Whether all or only a portion of this payment is to be considered part of the tax increment shall be determined at the time the tax increment district is created.(3) The incremental tax revenues resulting from an increase in total taxable sales and rentals of tangible personal property and in the rendition of taxable services by vendors located in a tax increment district. This paragraph applies only to a sales tax levied by a governing body.(4) The incremental tax revenues resulting from an increase in total gross receipts or gross or net profits or income realized by persons or entities from business conducted in a tax increment district. This paragraph applies only to those taxes levied under the authority of the act of August 5, 1932 (Sp.Sess., P.L. 45, No. 45), referred to as the Sterling Act, the act of December 31, 1965 (P.L. 1257, No. 511), known as The Local Tax Enabling Act, and the act of May 30, 1984 (P.L. 345, No. 69), known as the First Class City Business Tax Reform Act."Tax increment base." The term means one or more of the following, as appropriate:
(1) The aggregate market value of all taxable real property located within a tax increment district on the date the district is created.(2) In a district where the governing body has levied a tax on the business use and occupancy of real estate, the average aggregate market value of real property located within the district and used or occupied for business purposes during the last available 12-month period preceding the date of creation of the district.(3) In a district where the governing body has levied a sales tax, the total amount of taxable sales, rentals and services subject to the sales tax of the Commonwealth and occurring within the district during the last calendar year or the last available 12-month period preceding the date of creation of the district.(4) In a district where the governing body has levied a mercantile license tax, business privilege tax, net profits tax or similar tax for the privilege of engaging in business within the district, the total amount of taxable gross receipts, net income or net profits, as the case may be, realized by taxpayers at locations within the district during their last taxable period which ended before the date of creation of the district."Tax increment district" or "district." A contiguous geographic area within a redevelopment area defined and created by resolution or ordinance of the governing body of the municipality creating the district in accordance with section 5.
"Tax increment fund" or "fund." A fund into which are paid all tax increments and into which are deposited all revenues from the sale of tax increment finance bonds or notes, revenues from the sale of any property acquired as part of a project plan or revenues to be used in the district, and from which money is disbursed to pay project costs for the district or to satisfy claims of holders of tax increment bonds or notes issued for the district.
"Taxable property." The term includes only taxable property located within a tax increment district.
"Urban Redevelopment Law." The act of May 24, 1945 (P.L. 991, No. 385), known as the Urban Redevelopment Law.
1990, July 11, P.L. 465, No. 113, § 3, imd. effective. Amended 1992, Dec. 16, P.L. 1240, No. 164, § 1, imd. effective.