Regulations for Abatement of Allegheny County
Real Estate Taxes for New Construction
(Act 202 of 1986)
* This program is for COUNTY tax purposes only *
The following regulations were developed pursuant to the May 23, 1996 Resolution of Allegheny County, as amended, which was enacted under the authority granted to local taxing authorities by the New Home Construction Local Tax Abatement Act, 72 P.S. 4754-1 through 4754-6, known as Act 202.
- Allegheny County real estate taxes are abated, as described below, for new homes constructed in Allegheny County.
- The amount of the abatement will be for up to fifty percent of the improved value of the new home constructed.
- The length of the schedule of taxes exempted shall be known as the abatement period and shall not exceed two years or through the current expiration date of 12/31/2015, whichever occurs sooner unless extended by Allegheny County. The abatement period shall not exceed two years under any circumstances.
- The program applies to new construction after 1/1/96.
- This applies to the building (house) value only. Home owner will still be taxed on the land value if there is one.
- The following steps MUST be taken by the property owner to obtain approval of the ACT 202 abatement for new home construction.
- A completed Act 202 - A completed Act 202 Application for New Home Construction Abatement form should be submitted at the time building permit is issued.
- Attach a copy of the building permit to the application. The building permit can be obtained from the municipality where the new home construction is intended. If the municipality does not issue building permits for new home construction, the application shall be submitted prior to the time the structure is assessed for tax purposes.
- The application must be filed and dated prior to the occupancy permit date. Once an occupancy permit has been issued, you will have to forward a copy of the permit to the Office of Property Assessments.
- The Office of Property Assessments will then process the application. An assessor will:
- Receive a copy of the written request for the ACT 202 abatement.
- Review the property.
- When the construction is completed, and the occupancy permit is issued, the Office of Property Assessments will then determine the amount of the ACT 202 abatement and submit this information for final review and processing.
- The ACT 202 abatement of Allegheny County real estate taxes begins in the tax year after the property is sold or occupied. Any person who purchases a property for which an application for the abatement was made, or for which the abatement was approved, will have the rights and benefits of the application or approved abatement.
- The approval of all abatements under this program shall be by the Allegheny County Office of Property Assessments. Notice of action taken in determining entitlement to the abatement shall be given to the property owner and the taxing jurisdictions where the property is located. The property owner and the taxing jurisdictions of the property shall have rights of appeal from the action of the Allegheny County Office of Property Assessments. CHECK WITH YOUR LOCAL TAXING AUTHORITIES FOR PARTICIPATION IN THIS PROGRAM.
Act 202 Form