Tax discount program advances
Another step toward possible economic revitalization in Butler was taken Wednesday when the Butler County commissioners moved forward a tax abatement program.
The commissioners voted to advertise a date for possible approval of the Local Economic Revitalization Tax Assistance.
Under LERTA, property owners with buildings in four commercial zones would be deferred from paying taxes based on new construction or renovations. The owners would still pay the original property tax.
The commissioners gave the preliminary approval in a 2-1 vote.
Commissioner James Kennedy dissented, saying LERTA does not help businesses outside the designated area.
"It's an unfair advantage," he said.
Commissioner Jim Lokhaiser disagreed, saying any effort to draw in more shoppers helps every business.
Brian McCafferty, chairman of the Butler Downtown economic restructuring committee, said LERTA will spur revitalization.
"It eases the risk business owners will take in improving their property," he said.
McCafferty, who owns Kenmac Rental, said there is "real momentum" behind the program.
"People want to see the city revitalized," he said.
The city approved LERTA at the beginning of the year.
The Butler School District earlier this month approved its version of LERTA.
Unlike the city's version, which has a 10-year exemption for new construction and renovations, the school district set a five-year abatement at 100 percent.
The district abatement decreases to 66 percent in the sixth year and 33 percent in the seventh year.
County officials favor the district's version.
The three taxing bodies' versions of LERTA do not have to be consistent and none of their approvals are contingent on the others.
Attorney Tom King, who is the school district solicitor, said in an interview there is no state law requiring tax abatements from a county, municipality or school district to be tied together.
He said the stipulation is made by the taxing bodies themselves.
As of Thursday, the county had not yet set a date for a vote, but county solicitor Julie Graham said the commissioners would likely consider approval of LERTA at their Oct. 20 meeting.
