Tamaqua is scheduled to receive nearly $424,000 in revenue through its participation in the City Revitalization and Improvement Zone Program.

The Department of Revenue has announced a total of $7.1 million will be returned to three communities participating in the City Revitalization and Improvement Zone Program.

Those include Tamaqua, Bethlehem and Lancaster.

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.

Borough of Tamaqua

The 2017 revenue that will be paid to the CRIZ in Tamaqua, Schuylkill County, is $423,820.

The payment is attributable to $129,539 from 10 businesses, as defined under Act 84 as “new businesses” within the program, and $294,281 in incremental tax growth by 121 businesses with an established baseline.

Of the 191 businesses in the zone, 131 required reports were filed.

The maximum state borrowing permitted is $1,246,481, representing 50 percent of the 2017 state tax baseline of $2,492,962.

Micah Gursky, executive director of the Tamaqua Area Community Partnership, said the borough’s participation in the CRIZ Program has yielded a positive effect.

“Tamaqua’s 10 new businesses are doing great, and the existing businesses are growing,” Gursky said. “The new and incremental taxes only happen when businesses are employing more people, paying higher wages and making more sales.”

Gursky added, “We are just at the beginning of this 30-year program, and this CRIZ funding — that was generated locally — is available for existing and new business to expand and locate in Tamaqua.”

City of Bethlehem

The 2017 revenue that will be paid to the CRIZ in Bethlehem is $592,681.

The payment is attributable to $81,689 from 31 businesses with incremental growth or growth attributable to new business status, as defined under Act 84 as “new businesses” within the program and $510,992 by 48 construction contractors for construction in the zone.

Of the 96 businesses in the zone, 79 required reports were filed.

The maximum state borrowing permitted is $56,549, representing 50 percent of the 2016 state tax baseline of $113,097.

City of Lancaster

The 2017 revenue that will be paid to the CRIZ in Lancaster is $6,178,516.

The payment is attributable to $546,870 from 73 businesses, as defined under Act 84 as “new businesses” within the program, $5,597,357 in incremental tax growth by 332 businesses with an established baseline, and $34,288 by 51 construction contractors for construction in the zone.

Of the 546 businesses in the zone, 456 required reports were filed.

The maximum state borrowing permitted is $5,096,219, representing 50 percent of the 2017 state tax baseline of $10,192,438.

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 submit complete CRIZ tax reports in a timely manner will be subject to a nonfiling penalty of the lesser of 10 percent of taxes attributed to the CRIZ or $1,000 for each late or nonfiled report during the previous calendar year. Taxes paid by a contractor or qualified business that failed to submit a complete CRIZ tax report in a timely manner 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 and the Governor’s Budget Office.

Additional information is available on the DCED website www.newpa.com. Select the tab for Programs & Funding.