FAQ

FAQ
FAQ
	The KOZ program can meet the needs of various individuals. Here are some commonly asked questions about the KOZ Program. Click on the type of interest you have to view questions and answers of interest. Q1. What is different in KOZs than in past Enterprise Zone Programs? Q2. What is the state’s position on the use of payment in lieu of taxes (PILOTs)? Q3. Are special assessments such as additional millage rates applied in downtown investment districts effected by the KOZ law? Q4. Do businesses or residents have to be current with their taxes in order to receive the tax benefits? Q5. Does the tax abatement occur when development begins? Q6. Does the 184 day residency requirement apply to all abated taxes? Does a property owner have to live in a zone to get property tax abatement/exemption on a property owned that is in a zone? Q7. What if a taxing body's elected officials change, and those officials pass another resolution reinstating taxes? Q8. Can an individual subzone introduce rules and requirements that are more stringent than the legislation? Can local and state KOZ benefits be denied if, for example, employers did not meet minimum wage guidelines? Q9. What if a person who owns real estate located in a KOZ decides to sell it? Is the capital gain subject to tax and does it matter whether the owner lives in a KOZ? Q10. Will the KOZ law affect any past due state or local tax liens, encumbrances, judgments or utility or trash assessments that constitute a lien against the property? Q11. Is a resident of a Keystone Opportunity Zone ("KOZ") subject to Pennsylvania Personal Income Tax or local earned income tax? Q12. Is an employer responsible for withholding state personal income tax from the KOZ resident’s wages or compensation? Q13. Does the abatement of taxes occur when development occurs or at another period of time? Please reference sections in Act 92 that dictate this. Q14. Is it just the real property owner who fills out the KOZ Application? If I'm a business leasing space in a KOZ do I need to fill out the application?