Jeannette City School District directors unanimously approved extending a tax break program officials hope will spur investment on commercial properties in Jeannette.
Directors on Monday OK’d a five-year extension of the Local Economic Revitalization Tax Assistance program, or LERTA. It was established in Jeannette three years ago to allow developers the opportunity to get a break on increased property taxes in exchange for investing in the city.
Superintendent Matt Jones told directors the board initially approved the measure three years ago. No projects have qualified for the program during that time, but there are a few properties with development plans that could benefit.
City officials last week approved the program for five more years.
“They’re hoping that by doing five years it might help to spur that on,” Jones said.
The Westmoreland County commissioners must approve the measure before it goes into effect.
To qualify, a development project has to be big enough that it would trigger a property tax reassessment, such as a new building or substantial improvements to an existing one. There were applicants during the first three years, but none of the projects met program criteria, city officials said.
Under the program, Jeannette property owners in certain areas would continue paying taxes on the original assessed property value. After that time period is up, the developer will begin paying the full tax amount for the new assessed property value.
