Commercial property owners could be eligible for tax abatements on improvements they make to their business properties, thanks to an ordinance passed by the Township Board of Commissioners and Cheltenham School District in December 2002 and extended in 2005. Under the ordinance, tax on the improved part of the property would be phased in over five years, and the owner would not pay the full amount of municipal and school district taxes on the improvements until six years after the abatement is granted.
To be eligible for the tax abatement, properties must meet the ordinance’s definition of “deteriorating” (“a commercial, industrial, retail or other non-residential business property… that has fallen into a state of degeneration, decline or disrepair…”) and be in one of the Township’s five commercial districts – Glenside, Elkins Park East, Elkins Park West, East Cheltenham Avenue and Cheltenham Village. Qualifying improvements under the ordinance include major repairs and additions to deteriorating commercial property, but not routine maintenance.
The abatement is not automatic. Owners must apply for it when the Township's Department of Engineering, Zoning and Inspections issues the building permit for the proposed improvement. That department will provide abatement application forms, requiring the following information:
· date building permit issued
· type of improvement proposed
· summary of the improvement plan
· estimated cost.
The department forwards a copy of the completed abatement application to the Montgomery County Board of Assessment. When the improvement is completed, the property owner must notify both the Department of Engineering, Zoning and Inspections and the Board of Assessment, which will establish a separate assessment to calculate the eligible tax abatement. As with all assessments, the amount may be appealed.
The tax abatement ordinance applies to current businesses as well as any new businesses opening in Cheltenham’s five commercial districts. It does not apply, however, to permits issued to an otherwise qualifying improvement before December 17, 2002.
View the tax abatement ordinance, or contact Main Street Manager Ruth Littner Shaw for more information.