OIL CITY, Pa. (EYT) — The Oil City Council Thursday gave approval to proceed with an ordinance to renew their Local Economic Revitalization Tax Assistance Law.

In 1977, the Commonwealth of PA gave municipalities permission to provide tax exemptions for certain deteriorated industrial, commercial and other business properties.

At some point after that, Oil City enacted a program that expired in 2001. The city then decided to re-up the program in 2006, giving a sliding scale reduction for five years starting at 100 percent in the first year and going to 80 percent in the second year, 60 percent in the third year, 40 percent in the fourth year and 20 percent in the fifth year.

Then in 2008, the city amended the scale to include a 10-year period for a sliding scale tax exemption with years one through three being 100 percent, year four being 90 percent, year five being 75 percent, year six being 60 percent, year seven being 45 percent, year eight being 30 percent, year nine being 20 percent and year 10 being 10 percent.

In 2013, the council then extended the termination date for the LERTA to June 30, 2018.

In 2013, it also defined a deteriorated property as one that was “subject to governmental order requiring the property to be vacated, condemned or demolished by reason of non-compliance with law, ordinance or regulations and/or a property that does not meet the minimum standards for habitability, safety, health, economic use and/or amenity.” while defining a deteriorated area as “an area, the boundaries of which are determined by the City, in which improvements to deteriorated properties are eligible for tax exemption.”

At that time, the Council also stated that the exemption for taxes “shall be limited to the additional assessment valuation attributable to the actual cost of the new construction or improvements.” and it put forth certain criteria where the exemption wouldn’t be granted if the taxpayer, or the taxpayer’s subsidiaries, affiliates, other associated holdings or business entities didn’t obtain property permits and approvals, didn’t meet minimum standards of housing, building and zoning codes in the city or were delinquent on taxes and/or fees for municipal services.

“No one has taken advantage of it since I have been here,” City Manager Schroyer told exploreVenango. “But it is my experience it has always been a useful tool. It is always good to have the extra incentive.”

After a brief discussion at Thursday night’s meeting, the council voted to go ahead with a renewal of the program. An updated ordinance will be read at the next council meeting.

“It’s not being used often, but we didn’t want to discard it as a tool for improvement. We all agreed it should be kept intact,” Council member Ron Gustafson told exploreVenango.