HARRISBURG, Aug. 19, 2013 – Sen. Judy Schwank’s legislative efforts to help struggling Pennsylvania cities and cash-strapped emergency responders bore fruit today as a bill she worked to make significant, positive change was signed into law by the governor.
House Bill 465, the state’s tax code, creates City Revitalization and Improvement Zones in Pennsylvania. Sen. Schwank successfully led the effort to make the zones available to more Pennsylvania communities, including Reading, Lancaster, York and Bethlehem.
“There are many cities the size of Reading that were not covered under the initial proposal,” Schwank (D-Berks) said. “I worked to make sure they had the option to participate in a new program that could provide significant economic development and a way out for cities struggling with declining property values, job loss and escalating crime.”
City Revitalization and Improvement Zones, or CRIZs, will be funded with public bonds issued by a local municipal authority. The bond payments will be covered by local and state tax revenue raised within the zone.
Schwank’s change opened the program to all cities with populations exceeding 30,000 and it includes one pilot zone in a borough or township.
Up to two cities a year could join the program beginning in 2016. However, two cities and the borough/township pilot could establish zones sooner now that the law has been signed and implemented.
“We have significant work to do to help Pennsylvania’s great cities and towns return to prominence. City Revitalization and Improvement Zones happened because of bipartisan support and the collective belief that this new economic development tool will make a difference,” Schwank said.
CRIZ guidelines will be published by Oct. 31.
Another significant part of HB 465 creates a property transfer tax exemption for fire departments and other emergency response companies when they merge or consolidate.
The senator worked with Rep. Ryan Mackenzie (R-Berks) on the proposal after the Barto, Bally and Bechtelsville fire companies merged to form the Eastern Berks Fire Department (Company 97) and were slapped with a $17,000 transfer tax bill after deeding their stations to the new company.
Schwank said emergency responders working to become better stewards of precious financial resources should not be penalized after they take action to improve accountability and performance.
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