LERTA Attack Dismissed


A panel of the Commonwealth Court held that a taxpayer had standing to challenge a LERTA designation, but the complaint nonetheless was dismissed because it alleged no facts in support of the claim that the property was incorrectly classified as deteriorated. McCrea v. Penn Township, No, 2206 C.D. 2012 (Pa. Commw. July 10, 2013). A township designated an area as deteriorated and therefore eligible for exemption under the Local Economic Revitalization Tax Assistance Act (LERTA), 72 P.S. §§ 4722-4727. A taxpayer claimed that the designation was incorrect and that he would pay higher taxes as a result of exemptions claimed. The court agreed that the taxpayer had standing to challenge the designation under the standing rules stated in Pittsburgh Palisades Park, LLC v. Commonwealth, 888 A.2d 655 (Pa. 2005) and Mazur v. Washington County Redevelopment Authority, 954 A.2d 50 (Pa. Commw. 2008). Under these cases, a taxpayer has standing to challenge a tax enactment if the governmental action would otherwise go unchallenged, those directly and immediately affected by the enactment are beneficially affected and not inclined to challenge the action, judicial relief is appropriate, redressed through other channels is unavailable, and no other persons are better situated to assert the claim. Nonetheless, the complaint alleged nothing beyond the conclusions that the property was improperly designated as deteriorated. Therefore, the complaint was dismissed. The taxpayer was an elected director of the applicable school district.

This Alert was reprinted with permission from the PA Tax Recap, a publication of Pa Legislative Services.


Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.