Through the CRIZ Program, created by Act 52 of 2013 and amended in Act 84 of 2016, 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. The number of businesses that file a CRIZ report can influence the resulting funding levels.
Funding levels are calculated on a per business basis by comparing each business’s reported tax payments to that business’s established baseline.
The funds will be paid to the local development authority for the zone, and can be used for debt service, property acquisition, new construction and other costs related to development projects in the zone.
City of Lancaster: The 2016 revenue that will be paid to the CRIZ in Lancaster is $3,586,509.78.
- The payment is attributable to $361,833.73 from 55 businesses, as defined under Act 84 as “new businesses” within the program and $3,224,676.05 in incremental tax growth by 447 businesses with an established baseline.
- Of the 646 businesses in the zone, 540 required reports were filed.
The maximum state borrowing permitted is $6,221,843.56, representing 50 percent of the 2016 state tax baseline of $12,443,687.11.
Borough of Tamaqua: The 2016 revenue that will be paid to the CRIZ in Tamaqua, Schuylkill County is $173,343.37.
- The payment is attributable to $76,308.90 from eight businesses, as defined under Act 84 as “new businesses” within the program and $97,034.47 in incremental tax growth by 133 businesses with an established baseline.
- Of the 177 businesses in the zone, 154 required reports were filed.
The maximum state borrowing permitted is $1,085,334.65, representing 50 percent of the 2016 state tax baseline of $2,170,669.31.
City of Bethlehem: The 2016 revenue that will be paid to the CRIZ in Bethlehem is $145,815.64.
- The payment is attributable to $86,552.40 from two businesses, as defined under Act 84 as “new businesses” within the program, $53,760.58 by 25 construction contractors and $5,502.66 in incremental tax growth by 11 businesses with an established baseline.
Of the 46 businesses in the zone, 42 required reports were filed. - The maximum state borrowing permitted is $56,548.63, representing 50 percent of the 2016 state tax baseline of $113,097.26.
All qualified businesses, including construction contractors, within a CRIZ must complete annual state and local tax reports by June 15 each year so the Department of Revenue and local tax authority may certify the amount of taxes to be transferred to the CRIZ Fund.
Qualified businesses that fail to timely submit complete CRIZ tax reports will be subject to a non-filing penalty of the lesser of 10 percent of taxes attributed to the CRIZ or $1,000 for each late or non-filed report during the previous calendar year. Taxes paid by a contractor or qualified business that failed to timely submit a complete CRIZ tax report will not be included in the amount transferred to the CRIZ Fund.
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 by clicking here. Additional information is available on the DCED website, www.newpa.com. Select the tab for Programs & Funding.
Qualified businesses that fail to timely submit complete CRIZ tax reports will be subject to a non-filing penalty of the lesser of 10 percent of taxes attributed to the CRIZ or $1,000 for each late or non-filed report during the previous calendar year. Taxes paid by a contractor or qualified business that failed to timely submit a complete CRIZ tax report will not be included in the amount transferred to the CRIZ Fund.
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 by clicking here. Additional information is available on the DCED website, www.newpa.com. Select the tab for Programs & Funding.