PRIOR PRINTER'S NO. 717 PRINTER'S NO. 2134
No. 682 Session of 1981
INTRODUCED BY BOWSER, HAYES, D. R. WRIGHT, DIETZ, BRANDT,
DOMBROWSKI, WILT, PUNT, LEVI, PETERSON, A. C. FOSTER, JR.,
STUBAN, DeVERTER, COLE, BURD, GEIST, CAPPABIANCA, WENGER,
DeWEESE, CALTAGIRONE, VROON, BITTLE, CIMINI, MERRY, SWIFT,
BOYES, MACKOWSKI, LEHR, GRIECO, ANDERSON, WASS, JOHNSON,
HONAMAN, NOYE, MILLER, ARMSTRONG, LIVENGOOD, LETTERMAN,
PETRARCA, STEWART, GRUITZA, ZWIKL, RITTER, STEIGHNER,
VAN HORNE, TIGUE, BLAUM, CAWLEY, SIRIANNI, WOZNIAK, PHILLIPS,
DORR, TELEK, J. L. WRIGHT, SIEMINSKI AND LLOYD,
FEBRUARY 18, 1981
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, SEPTEMBER 14, 1981
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for the definition of "utility
11 realty" and the payment of taxes.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Clause (3) of section 1101-A and subsection (a)
15 of section 1104-A, act of March 4, 1971 (P.L.6, No.2), known as
16 the "Tax Reform Code of 1971," added July 4, 1979 (P.L.60,
17 No.27), are amended to read:
18 Section 1101-A. Definitions.--The following words, terms and
1 phrases when used in this article shall have the meaning
2 ascribed to them in this section, except where the context
3 clearly indicates a different meaning:
4 * * *
5 (3) "Utility realty." All lands, together with all
6 buildings, towers, smokestacks, dams, dikes, canals, cooling
7 towers, storage tanks, reactor structures, pump houses,
8 supporting foundations, enclosing structures, supporting
9 structures, containment structures, reactor containment outer
10 shells, reactor containment vessels, turbine buildings, recovery
11 tanks, solid waste area enclosures, primary auxiliary buildings,
12 containment auxiliary safeguard structures, fuel buildings,
13 decontamination buildings, and, all other structures and
14 enclosures whatsoever which are physically affixed to the land,
15 no matter how such structures and enclosures are designated and
16 without regard to the classification thereof for local real
17 estate taxation purposes, but not including machinery and
18 equipment, whether or not housed within such building, structure
19 or enclosure, located within this Commonwealth and owned by a
20 public utility either directly or by or through a subsidiary,
21 which are used or are in the course of development or
22 construction for use, in the furnishing, including producing,
23 storing, distributing or transporting, of public utility service
24 and which are not subject to local real estate taxation under
25 any law in effect on April 23, 1968: Provided, however, That the
26 following specified items shall be exempt from the tax hereby
27 imposed:
28 (i) Easements or similar interests.
29 (ii) Railroad rights-of-way and superstructures thereon.
30 (iii) Pole, transmission tower, pipe, rail or other lines
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1 whether or not said lines are attached to the land or to any
2 structure or enclosure which is physically affixed to the land.
3 (iv) All lands, together with all buildings, dams, dikes,
4 canals, pump houses, supporting structures, supporting
5 foundations, turbine buildings and all other structures and
6 enclosures whatsoever which are physically affixed to the land,
7 no matter how such structures and enclosures are designated and
8 without regard to the classification thereof for local real
9 estate taxation purposes which are used or are in the course of <--
10 development or construction for use OR USEFUL in the furnishing, <--
11 including producing, storing, distributing or transporting, of
12 hydroelectric power and energy: Provided, however, That the
13 exemptions under this subclause shall not apply to items and
14 lands which on the effective date of this act were used to
15 furnish hydroelectric power and energy; and that the exemptions
16 under this subclause shall remain in effect for only a period of <--
17 ten tax years after the first year in which the item or land is
18 used to furnish hydroelectric power and energy. UNDER THIS <--
19 SUBCLAUSE SHALL COMMENCE IN THE FIRST YEAR IN WHICH THE ITEM OR
20 LAND IS USED AND USEFUL IN FURNISHING HYDROELECTRIC POWER AND
21 ENERGY, AND SHALL REMAIN IN EFFECT FOR A PERIOD OF TEN
22 CONSECUTIVE YEARS THEREAFTER.
23 * * *
24 Section 1104-A. Effect of Payment; Additional Assessment.--
25 (a) Payment of, or exemption from, OR ANY EXEMPTION, CREATED AS <--
26 THE RESULT OF THIS ACT, FROM the tax imposed by the act of March
27 10, 1970 (P.L.168, No.66), known as the "Public Utility Realty
28 Tax Act," or section 1102-A, or section 1103-A, and the
29 distribution to local taxing authorities prescribed by section
30 1107-A, shall be in lieu of local taxes upon utility realty, as
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1 contemplated by Article VIII, section 4, of the Constitution of
2 Pennsylvania: PROVIDED, THAT IN EXEMPTING THE TAX IMPOSED BY <--
3 THIS ARTICLE, THE COMMONWEALTH SHALL REIMBURSE LOCAL TAXING
4 AUTHORITIES FOR PROPERTY TAXES FOREGONE BY THIS ACT.
5 * * *
6 Section 2. This act shall take effect in 60 days.
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