| Keystone Opportunity Zone (KOZ)
Designation |
FOR INFORMATION CALL
Judith Walters 610-269-0344 x204
(The Act; The
Map)
In February 1999
Governor Ridge announced the 12 new Keystone Opportunity Zones where
state and local taxes would be eliminated to stimulate job creation and
community renewal. Only one other state – Michigan- has a program
similar to this landmark initiative. The Pennsylvania initiative was
signed into law (Act of 1998, P.L. 705, No.92)
in October 1998. Downingtown is the only Chester County community so
designated.
In each zone, state
corporate net income, capital stock and franchise and personal income
taxes are waived for 12 years for employers and residents doing business
or living in the KOZ. Local governments have agreed to waive local real
estate, earned income/net profits and business gross receipts taxes.
Employers and residents however, must be up to date with all state and
local tax payments to receive the tax-free status offered by this
initiative. Below is a table outlining the tax-free structure:
|
State
Taxes |
Local
Taxes |
|
Corporate Net
Income Tax |
Earned
Income/Net Profits Tax |
|
Capital Stock
& Foreign Franchise Tax |
Business Gross
Receipts, Business Occupancy, Business Privilege and Mercantile
Taxes |
|
Personal Income
Tax |
Local Real
Property Tax |
|
Sales & Use
Tax (purchases used & consumed by businesses in zone) |
Sales & Use
Tax (county/city; purchases used & consumed by businesses in
zone; if applicable) |
"The Keystone
Opportunity Zone program is fostering a new spirit of regional
cooperation throughout Pennsylvania as local governments work together
on regional development priorities". Governor Ridge said.
The area designated as
Downingtown's Keystone Opportunity Zone was the Johnsontown area of the
Borough. The Amtrak train yard on the west end of town and the
surrounding area were designated tax-free parcels. See the attached map
for the specific geographic boundaries and more detailed information.
In March 1999 the
Borough authorized the formation of a KOZ Committee consisting of 22
members. Since that time the Committee has been very busy. The program
was introduced to all zone residents. The housing codes were established
to enable participation and a local tax rebate process was completed.
The
committee conducted a 4-day planning charrette to determine the best use of the
zone area. There was considerable debate about the nature of the
development. The Torti-Gallas planning group conducted the charrette and
developed five distinct scenarios for development of the site. Any development
on the yard will require a unified development plan promulgated through the
planning commission and approved by Borough Council.
There were common elements in all five plans.
In all plans a train station was to be built on Route 30 to service the
passengers utilizing the Downingtown Station. Housing is being proposed
for the current SEPTA parking area and the parking moved closer to the station
area.
In examining the site the Torti-Gallas
planners were faced with a difficult task. How to make Johnsontown
more accessible for pedestrian and vehicular traffic to not only make
development possible but also improve the neighborhood access.
Four separate traffic improvements were proposed as possible scenarios
for securing appropriate access.
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