Weissport Council is considering a tax assistance program to encourage business ventures.

The Local Economic Revitalization Tax Assistance program is a tax incentive for property owners to renovate or update a building to encourage businesses to locate and grow in an area. Improvements eligible for the LERTA program include repairs, construction, improvements to alleviate health concerns, economic use and to comply with ordinances or regulations.

Kathy Henderson, director of economic development for the Carbon Chamber and Economic Development Corp., said the program, which was enacted by the state in 1977, is currently used in Hazleton and municipalities in Monroe County.

Under the program, new commercial or industrial business ventures are eligible for a 10-year phase-in exemption schedule of property taxes.

Properties would be assessed at the purchase price for tax purposes and upgrades to properties would be phased into the taxes over the 10-year period.

An example Henderson used could be the first year, immediately following the date when an improvement becomes assessable through the fifth year, 100 percent of the assessed valuation of the eligible improvement would be exempted.

In the sixth year, 80 percent would be exempt; the seventh year, 60 percent exempt; eighth year, 40 percent exempt; ninth year, 20 percent; and 10th year, exemption terminated.

“The taxing bodies would still collect the current base taxes on the property throughout the entire term of the program,” Henderson said. “The difference between the increase in the assessment after the improvements are completed and the current assessment is what would be phased in over the term of the program.

“This will be an invaluable tool in our toolbox to incentivize business to locate not just in Weissport, but other areas of the county that are willing to participate.”

Brian Feick, business administrator for Lehighton Area School District was also on hand to discuss the program with council. The district’s finance committee discussed beginning the program in the district with Henderson in July 2018.

Feick said that the district, county and borough should agree on the specific details of the program.

Henderson added that at least two of the local taxing bodies must participate for this program to move forward.

“Since the school district and the county are usually the ones that receive the majority of tax, it would stand to reason that if those two agree to the LERTA, we would be able to proceed,” she said.

“However, we would prefer that all three agree. “The borough or township would still need to designate an area such as a ‘business district’ that they wish to be a part of the district.” Feick said the district would like to see specific areas of Weissport labeled eligible for LERTA.

In addition, the district would like to see new ventures having five full-time employees or 15 part-time employees, along with a $500,000 investment in the property.

Carbon County Commissioners’ Chairman Wayne Nothstein was also present and told council that the county would be in favor of the LERTA program depending on percentages through the 10 years.

Nothstein said he would prefer looking at individual cases rather than designating entire areas of the borough as eligible.

He added that the investment amount the school district wants to set it at may exclude some small businesses.

Feick told council that the LERTA program would, “create a nightmare for the tax collectors if the school district, county and borough don’t agree on the percentages.”

He added that interest has been shown in Weissport for the LERTA program.

After discussion, council agreed to take the matter under advisement and will make a decision on the LERTA program at a later date.

Reporter Amy Miller contributed to this story.