HARRISBURG, Pa., Oct. 14, 2015 /PRNewswire-USNewswire/ -- The Pennsylvania Department of Revenue today announced the amount of state tax revenue that will be returned to communities participating in the City Revitalization and Improvement Zone (CRIZ) Program.
Through the CRIZ Program, created by Act 52 of 2013, a portion of state and local taxes collected within designated CRIZ zones are used to repay debt service to stimulate economic development projects within the zones.
Funding levels are not discretionary, but are calculated using established baselines that are adjusted annually based on taxes reported by businesses operating in the zones. The number of businesses that report can influence the resulting funding levels.
City of Bethlehem: The 2014 CRIZ revenue to be paid in Bethlehem in 2015 is $18,949, attributable to new construction and one new business.
- The 2014 state tax baseline is $121,175.
- The 2014 General Fund tax revenue attributable to activity in the Bethlehem CRIZ was $132,834. The 2014 tax revenue attributable to the CRIZ from qualified businesses that were included in the 2013 baseline was $113,884.
City of Lancaster: The 2014 CRIZ revenue to be paid in Lancaster in 2015 is $2,870, attributable to new construction and eight new businesses.
- The 2014 state tax baseline is $13.7 million.
- The 2014 General Fund tax revenue attributed to activity in the CRIZ was $12.9 million.
The department also announced the initial baseline for a CRIZ pilot zone in the Borough of Tamaqua, Schuylkill County, which was designated in 2014. A total of 120 businesses, representing 61 percent of businesses in the zone, filed the required reports to establish the 2014 state tax baseline of $2,010,120. This initial baseline will be used to help calculate qualifying CRIZ funds for 2016.
The CRIZ Program is administered by the Department of Revenue, the Department of Community and Economic Development (DCED) and the Governor's Budget Office. More information about the program may be found at www.revenue.pa.gov, under General Tax Information, then Incentives, Credits & Programs. Additional information is found at the DCED website, www.newpa.com. Select the tab for Programs & Funding.
MEDIA CONTACT: Gary Miller, 717-787-6960
SOURCE Pennsylvania Department of Revenue