Reversing a Dwindling Tax Base
With thousands of acres of federal- and county-protected open space in Upper Mount Bethel Township, some 84% of township land is exempt from tax or charged a reduced rate.
That means only 16% of township land carries 100% of Upper Mount Bethel Township’s costs. For these and other reasons, the millage rate for Bangor Area School District property taxes has increased 300% over the past 30 years.
River Pointe Commerce Park will single-handedly double the tax base of Upper Mount Bethel Township using only 2% of its total land area by increasing real estate tax and earned income tax revenues. Post-development, the property will have real estate taxes 170 times greater than pre-development. Those are much-needed dollars for public safety and emergency equipment and services and to negate the need for future property tax hikes.
The impact will be just as positive on the Bangor Area School District, where 45% of students now qualify for free or reduced school lunches.
At full build-out, River Pointe Commerce Park will generate an estimated $5.9 million for Bangor Area school children. The tax impact to the Township will be immediate. From the outset, the development will pay the existing tax rate on the property. Therefore, the project is not tax exempt.
In 2018, Upper Mount Bethel Township approved nearly 1,200 acres of land for the Local Economic Revitalization Tax Assistance (LERTA) abatement program to attract development to our Township. LERTA allows for a phased-in tax rate, whereby every year the developer pays an additional 10% of the total property tax until year 11 when the developer pays 100% of the total property tax on improvements made to the property.