PRINTER'S NO. 2947
No. 2355 Session of 1993
INTRODUCED BY MICHLOVIC, ITKIN, MURPHY AND McNALLY,
DECEMBER 8, 1993
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, DECEMBER 8, 1993
AN ACT
1 Providing authorization to certain counties and cities for
2 creation of the Allegheny Regional Asset District as a
3 special purpose areawide unit of local government; creating a
4 governing board for the district; authorizing the district to
5 finance and support civic, recreational, library, sports and
6 other regional assets; empowering the district to issue bonds
7 and notes; authorizing the district to enter into
8 intergovernmental cooperation agreements regarding regional
9 assets; authorizing the imposition of an additional tax on
10 the sale and use of tangible personal property and services;
11 creating a fund; providing for use of the revenues generated
12 by the additional tax; providing for reduction of local
13 taxes; and making repeals.
14 TABLE OF CONTENTS
15 Chapter 1. Preliminary Provisions
16 Section 101. Short title.
17 Section 102. Findings and declaration of policy.
18 Section 103. Definitions.
19 Chapter 3. Allegheny Regional Asset District
20 Section 301. District created.
21 Section 302. Governing board.
22 Section 303. Powers and duties.
23 Section 304. Fiscal year.
1 Section 305. Initial financial plan.
2 Section 306. Capital budget.
3 Section 307. Operating budget.
4 Section 308. Restrictions upon activities of board members and
5 employees.
6 Section 309. Annual report.
7 Chapter 5. Regional Assets
8 Section 501. Designation of assets.
9 Section 502. Cooperation and support agreements.
10 Chapter 7. Bonds and Funds of District
11 Section 701. Bonds.
12 Section 702. Governmental immunity.
13 Section 703. Funds of district.
14 Section 704. Transfer of funds.
15 Section 705. Pledge of revenues by district and Commonwealth.
16 Chapter 9. Additional Sales and Use Tax
17 Section 901. Definitions.
18 Section 902. Construction.
19 Section 903. Imposition.
20 Section 904. Situs.
21 Section 905. Licenses.
22 Section 906. Rules and regulations; collection costs.
23 Section 907. Procedure and administration.
24 Section 908. Dedication and disbursement.
25 Chapter 11. Local Tax Relief and Assistance to Local
26 Governments
27 Section 1101. Assistance to local governments.
28 Section 1102. Tax relief.
29 Section 1103. Contributions to councils of governments.
30 Chapter 13. Miscellaneous Provisions
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1 Section 1301. Repeals.
2 Section 1302. Effective date.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 CHAPTER 1
6 PRELIMINARY PROVISIONS
7 Section 101. Short title.
8 This act shall be known and may be cited as the Allegheny
9 Regional Asset District Enabling Act.
10 Section 102. Findings and declaration of policy.
11 (a) Findings.--The General Assembly finds the following:
12 (1) Supplemental sources of revenue are needed by
13 municipalities in the southwestern region of this
14 Commonwealth to finance programs of local tax relief.
15 (2) Supplemental sources of public and private revenue
16 are required to preserve, improve and develop the region's
17 civic, recreational, library, sports, cultural and other
18 regional assets.
19 (3) Local governments in southwestern Pennsylvania lack
20 the resources to adequately maintain, improve and modernize
21 the region's civic, recreational, library, sports, cultural
22 and other regional assets, the continued availability of
23 which is vital to the economic growth and development of
24 southwestern Pennsylvania, to the ability of the region to
25 compete globally for visitors, residents and investment in
26 jobs and to the health, welfare, education and quality of
27 life of the citizens of the region.
28 (4) New methods of areawide intergovernmental
29 cooperation, including the transfer of regional assets to
30 private citizen-controlled organizations receiving public
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1 support, are essential to preserve and improve the region's
2 civic, recreational, library, sports, cultural and other
3 regional assets.
4 (5) In developing new methods of areawide
5 intergovernmental cooperation to preserve and improve
6 regional assets, every effort should be made to utilize to
7 the maximum extent practicable the existing resources and
8 capabilities of municipalities and private organizations in
9 the region and to avoid the creation of new and duplicative
10 bureaucracies responsible for employing individuals, owning
11 property and executing contracts.
12 (b) Declaration of policy.--It is hereby declared to be the
13 policy of this Commonwealth to promote the health, welfare and
14 quality of life of the citizens of southwestern Pennsylvania and
15 to enhance economic development and employment in the region by
16 authorizing the creation of the Allegheny Regional Asset
17 District as a special purpose areawide unit of government.
18 Section 103. Definitions.
19 The following words and phrases when used in this act shall
20 have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Board." The governing body of the district.
23 "City." A city of the second class.
24 "County." A county of the second class.
25 "District." The Allegheny Regional Asset District
26 established under this act.
27 "District employee." The chairman and members of the board
28 of the district, counsel employed by the district, the chief
29 administrative officer of the district and any employee with
30 discretionary powers which may affect the outcome of the
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1 district's decisions in relation to a private corporation or
2 business or any employee who by virtue of the employee's job
3 function could influence the outcome of such a decision.
4 "Fund." The Allegheny Regional Asset District Sales and Use
5 Tax Fund.
6 "Immediate family." A parent, spouse, child, brother, sister
7 or like relative-in-law.
8 "Initial year in which disbursements are received." The
9 first calendar year in which disbursements are received by
10 qualified municipalities or the county under section 908(b).
11 "Party officer." The following members or officers of any
12 political party:
13 (1) A member of a national committee.
14 (2) A chairman, vice chairman, secretary, treasurer or
15 counsel of a State committee or members of the executive
16 committee of a State committee.
17 (3) A county chairman, vice chairman, counsel, secretary
18 or treasurer of a county committee.
19 (4) A city chairman, vice chairman, counsel, secretary
20 or treasurer of a city committee.
21 "Person." A business, individual, corporation, union,
22 association, firm, partnership, committee, club or other
23 organization or group of persons.
24 "Public employee." Any individual employed by the
25 Commonwealth or a political subdivision.
26 "Public officer." Every person elected to any public office
27 of Commonwealth government or any political subdivision of the
28 Commonwealth.
29 "Public official." Any elected or appointed official in the
30 executive, legislative or judicial branch of Commonwealth
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1 government or any political subdivision of the Commonwealth. The
2 term shall not include members of advisory boards who have no
3 authority to expend public funds other than reimbursement for
4 personal expenses or to otherwise exercise the power of the
5 Commonwealth or any political subdivision of the Commonwealth.
6 The term shall also not include any appointed official who
7 receives no compensation other than reimbursement for actual
8 expenses.
9 "Regional asset." A civic, recreational, library, sports or
10 cultural facility or project designated as such by the district
11 under this act.
12 CHAPTER 3
13 ALLEGHENY REGIONAL ASSET DISTRICT
14 Section 301. District created.
15 (a) Authority.--A body corporate and politic to be known as
16 the Allegheny Regional Asset District is hereby authorized to be
17 created by a county as a special purpose areawide unit of local
18 government pursuant to section 7 of Article IX of the
19 Constitution of Pennsylvania, exercising powers as a unit of
20 local government under this act. The exercise by the district of
21 the powers conferred by this act is hereby declared to be, and
22 shall for all purposes be deemed and held to be, the performance
23 of an essential public function.
24 (b) Manner of creation.--The district shall be deemed to be
25 created upon the adoption of an ordinance imposing the
26 additional sales and use tax as authorized by Chapter 9.
27 (c) Termination.--Once established, the district shall
28 continue in existence perpetually regardless of any actions by
29 the city or the county, except that the district may be
30 terminated pursuant to an intergovernmental cooperation
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1 agreement between the city and the county which transfers
2 without impairment all of the administrative, managerial or
3 financial functions exercised with respect to regional assets by
4 the district to the city or the county.
5 (d) Nonliability of members.--Members of the board shall not
6 be liable personally on the bonds or other obligations of the
7 district, and the rights of creditors shall be solely against
8 the district. The district, itself or by contract, shall defend
9 board members, and the district shall indemnify and hold
10 harmless board members, whether currently employed by the
11 district or not, against and from any and all personal
12 liability, actions, causes of action and any and all claims made
13 against them for whatever actions they perform within the scope
14 of their duties as board members.
15 Section 302. Governing board.
16 (a) Composition of board.--The powers and duties of the
17 district shall be exercised by a board composed of the following
18 members:
19 (1) Three members appointed by the governing body of the
20 county who shall serve at the pleasure of the governing body
21 of the county.
22 (2) Two members appointed by the mayor of the city who
23 shall serve at the pleasure of the mayor.
24 (3) Two members appointed by the members appointed under
25 paragraphs (1) and (2) from a list of nominees provided by
26 regional economic and community development organizations.
27 For the purpose of selecting members under this paragraph, an
28 affirmative vote of at least four of the five members
29 appointed under paragraphs (1) and (2) shall be required.
30 (b) Term.--The term of office of members of the board
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1 appointed under subsection (a)(1) and (2) shall be coincident
2 with the term of office of the appointing authority of the
3 members and until their successors are appointed and qualified.
4 The term of office of members of the board appointed under
5 subsection (a)(3) shall be for a term of two years, until their
6 successors are appointed and qualified. A person appointed to
7 the board when a vacancy occurs during the term of office of a
8 member of the board shall serve for the remainder of the term.
9 (c) Organization.--The governing body of the county shall
10 select one of the members of the board appointed under
11 subsection (a)(1) as the interim chairman of the district and
12 shall, within ten days of the effective date of the creation of
13 the district, set a date, time and place for the initial
14 organizational meeting of the board. The members shall elect
15 from among themselves a chairman, vice chairman, secretary,
16 treasurer and such other officers as they may determine. A
17 member may hold more than one office of the board at any time.
18 Members may serve successive terms as officers of the board.
19 (d) Meetings.--The board shall meet as frequently as it
20 deems appropriate but at least once during each quarter of the
21 fiscal year. In addition, a meeting of the board shall be called
22 by the chairman if a request for a meeting is submitted to the
23 chairman by at least two members of the board. A majority of the
24 members appointed to the board shall constitute a quorum for the
25 purpose of conducting the business of the board and for all
26 other purposes, except that for the purpose of deciding whether
27 to enter into cooperation and support agreements with regional
28 assets not included within the district's initial financial
29 plan, an affirmative vote of at least six members of the board
30 shall be required. The act of July 3, 1986 (P.L.388, No.84),
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1 known as the Sunshine Act, shall apply to the board.
2 Section 303. Powers and duties.
3 (a) Purposes of district.--
4 (1) The district, by entering into agreements with
5 municipalities and persons providing for cooperation, shall
6 accomplish the following purposes:
7 (i) supporting and financing regional assets;
8 (ii) engaging in the oversight of regional assets;
9 and
10 (iii) assuring the efficient and effective operation
11 and development of regional assets.
12 (2) The enumeration of purposes in paragraph (1) shall
13 not be construed to limit the powers granted to the district
14 under this act.
15 (b) Specific powers and duties.--The district is granted all
16 powers necessary or convenient for the carrying out of its
17 purposes, including the following:
18 (1) To have continuing succession.
19 (2) To sue and be sued, implead and be impleaded,
20 complain and defend in all courts.
21 (3) To adopt, use and alter at will a corporate seal.
22 (4) To make, enter into and award contracts with any
23 person, association, partnership or corporation for the
24 development, design, financing, construction, improvement,
25 maintenance, operation, furnishing, fixturing, equipping and
26 repair of regional assets or parts of regional assets.
27 (5) To conduct financial and performance reviews and
28 audits of regional assets.
29 (6) To conduct long-term planning necessary for the
30 efficient and effective operation and development of regional
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1 assets.
2 (7) To make bylaws for the regulation of its affairs and
3 to promulgate rules, regulations and policies in connection
4 with the performance of its functions and duties.
5 (8) (i) To borrow money for the purpose of paying the
6 costs of any project and to evidence the same.
7 (ii) To make and issue negotiable bonds of the
8 district and secure the payment of the bonds, or any part
9 of the bonds, by pledge or deed of trust of all or any of
10 its revenues, rentals, receipts and contract rights.
11 (iii) To make such agreements with the purchasers or
12 holders of the bonds or with other obligees of the
13 district in connection with any bonds, whether issued or
14 to be issued, as the district shall deem advisable, which
15 agreements shall constitute contracts with the holders or
16 purchasers.
17 (iv) To obtain such credit enhancement or liquidity
18 facilities in connection with any bonds as the district
19 shall determine to be advantageous.
20 (v) To, in general, provide for the security for the
21 bonds and for the rights of the holders of the bonds.
22 (9) To make, enter into and award contracts of every
23 name and nature and to execute all instruments necessary or
24 convenient for the carrying out of its business.
25 (10) To borrow money and accept grants and to enter into
26 contracts, leases, subleases, licenses or other transactions
27 with any Federal agency, State public body, political
28 subdivision, person, association, partnership or corporation.
29 (11) To pledge, hypothecate or otherwise encumber any of
30 its property, real, personal or mixed, tangible or
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1 intangible, and its revenues or receipts, including, but not
2 limited to, any interest the district may have in any lease
3 or sublease of regional assets or parts of regional assets.
4 (12) To procure such insurance containing such coverage,
5 including, without limitation, insurance covering the timely
6 payment in full of principal and interest on bonds of the
7 district, in such amounts, from such insurers, as the
8 district may determine to be necessary or desirable for its
9 purposes.
10 (13) To invest its money.
11 (14) To cooperate with any Federal agency, State public
12 body or political subdivision.
13 (15) To invest any funds not required for immediate
14 disbursement in reserve or sinking funds.
15 (16) To appoint all officers, agents and employees
16 required for the performance of its duties and fix and
17 determine their qualifications, duties and compensation and
18 retain or employ other agents or consultants.
19 (17) To enroll its employees in a retirement system,
20 including an existing retirement system of the county, city
21 or other governmental entity.
22 (18) To appoint and fix the compensation of chief
23 counsel and assistant counsel, who shall not be required to
24 be employees of the district, to provide it with legal
25 assistance. Notwithstanding the provisions of 42 Pa.C.S. §
26 8525 (relating to legal assistance), the authority through
27 its counsel shall defend actions brought against the
28 authority and its officers and employees when acting within
29 the scope of their official duties.
30 (19) To maintain an office in the county.
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1 (20) To do all acts and things necessary or convenient
2 for the promotion of its purposes and the general welfare of
3 the district and to carry out the powers granted to it by
4 this act or any other acts.
5 (c) Limitations and conditions regarding operations.--
6 Notwithstanding any purpose of the district or a general or
7 specific power granted by this act or any other act, whether
8 express or implied, the following limitations and conditions
9 shall apply to the operations of the district:
10 (1) The district shall have no power to pledge the
11 credit or taxing powers of the Commonwealth or any other
12 government agency except the credit of the district, nor
13 shall any of the bonds of the district be deemed a debt or
14 liability of the Commonwealth or of any other government
15 agency, except as otherwise agreed by the Commonwealth or a
16 government agency.
17 (2) Neither the Commonwealth nor any government agency
18 except the district shall be liable for payment of the
19 principal, interest or premium on any of the district's
20 bonds, except as otherwise agreed by the Commonwealth or a
21 government agency.
22 (3) Notwithstanding any provision of this act or any
23 other act to the contrary, or of any implication that may be
24 drawn from this act or any other act, the Commonwealth and
25 all other government agencies, except the district, shall
26 have no legal or moral obligation for the payment of any
27 expenses or obligations of the district, including, but not
28 limited to, bond principal and interest, the funding or
29 refunding of any reserve and any administrative or operating
30 expenses whatsoever, except as otherwise agreed to by the
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1 Commonwealth or another government agency.
2 (4) Bonds of the district shall contain a prominent
3 statement of the limitations set forth in this subsection and
4 shall further recite that obligees of the district shall have
5 no recourse, either legal or moral, to the Commonwealth or to
6 any other government agency for payment of the bonds, except
7 as otherwise agreed to by the Commonwealth or another
8 government agency.
9 (5) The district shall not assume the responsibility of
10 employing personnel directly engaged in the operation of
11 regional assets, but may enter into contracts with the city,
12 county and other public and private organizations for the
13 operation and financing of regional assets.
14 Section 304. Fiscal year.
15 The fiscal year of the district shall commence on January 1
16 of each year and end on December 31 of each year, except as
17 otherwise provided by the board.
18 Section 305. Initial financial plan.
19 (a) Cooperation and support agreements.--Immediately upon
20 the creation of the district, the board shall commence the
21 negotiation of cooperation and support agreements with the
22 owners and operators of regional assets under Chapter 5. The
23 agreements shall include the following provisions:
24 (1) Agreements regarding the governance and operation of
25 regional assets.
26 (2) Commitments regarding the level of financial support
27 for the regional assets that will be provided by the
28 district, the city, the county, other municipalities and
29 other public and private organizations.
30 (3) Long-term plans for the financing, development and
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1 operation of regional assets.
2 (4) Performance and financial goals, objectives and
3 standards for the operation of regional assets.
4 (5) Assurances that adequate measures will be undertaken
5 to maintain and improve regional assets.
6 (6) Assurances that the operating and capital budgeting
7 for regional assets will occur in a financially responsible
8 manner.
9 (7) Provisions for public involvement in the activities
10 of regional assets and for participation by the district, the
11 county, the city and other municipalities, as appropriate, in
12 decisions regarding the operations and development of
13 regional assets.
14 (8) Access by the district to financial information
15 regarding the overall activities of the regional assets.
16 (b) Budgets.--Prior to the start of the initial operational
17 fiscal year for the district, the board shall adopt an operating
18 and capital budget based upon cooperation and support agreements
19 executed with the owners and operators of regional assets. The
20 budget shall estimate the total revenues required for the
21 operating and capital expenses of the district and the amount of
22 any revenues to be received by the district under Chapter 9.
23 (c) Minimum funding levels.--The cooperation and support
24 agreement executed with the owner and operator of each regional
25 asset shall set forth a minimum level of financial support for
26 the regional asset that will be provided by the district in each
27 of the first ten fiscal periods of the district, unless the
28 regional asset ceases operations at the option of its owner and
29 operator. The minimum level of financial support for a regional
30 asset shall be not less than the financial support for the
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1 regional asset provided by the county and the city during
2 calendar year 1992. In the event that the minimum funding levels
3 cannot be satisfied because of the lack of adequate resources,
4 the minimum levels of funding for all regional assets shall be
5 reduced by an equal fraction so as to ensure that total
6 obligations do not exceed total revenues available to the
7 district. Additional commitments of funds from sources other
8 than the district on a pro rata basis may be required by the
9 district for any financial support provided to regional assets
10 above the minimum funding levels. Financial support shall
11 include indirect costs when supported by an indirect cost study
12 completed by an independent accounting firm. Indirect costs may
13 include charges for such services as payroll, accounting, legal
14 services, printing, vehicle repair and other reasonable and
15 necessary overhead functions.
16 (d) Public hearings and meetings.--The board shall conduct
17 public hearings and meetings regarding proposed cooperation and
18 support agreements and any amendments to cooperation and support
19 agreements.
20 (e) Definition.--As used in this section, the term
21 "financial support" means the direct commitment of moneys for
22 the support of regional assets, including payments for debt
23 service, and the costs of compensation and benefits for
24 employees predominantly engaged in providing direct services for
25 the operation of a specific regional asset.
26 Section 306. Capital budget.
27 (a) Adoption.--At least 90 days before commencement of the
28 ensuing fiscal year of the district, the board shall cause to be
29 prepared and submitted to it a recommended capital budget. The
30 capital budget shall show in detail the capital expenditures to
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1 be made or incurred in the next fiscal year which are to be
2 financed from funds subject to control or appropriation by the
3 board. No later than the date of the adoption of the annual
4 operating budget, the board shall, by a majority vote of its
5 members, adopt a capital budget. A capital development agreement
6 shall be executed with each regional asset for each capital
7 project of the asset financed or supported by the district.
8 (b) Regional parks.--At least 1% of the funds made available
9 to the district by taxes levied within the county shall be made
10 available for capital projects undertaken within regional parks
11 located within the boundaries of the city, and at least 1% of
12 the funds made available to the district shall be made available
13 for capital projects undertaken within regional parks located
14 within the county, but outside of the city.
15 (c) Public meetings and hearings.--The board shall conduct
16 public hearings and meetings regarding capital budget requests
17 of regional assets and the proposed annual capital budget of the
18 district.
19 Section 307. Operating budget.
20 (a) Adoption.--At least 90 days before commencement of the
21 ensuing fiscal year of the district, the board shall cause to be
22 prepared and submitted to it a recommended operating budget. The
23 operating budget shall set forth the estimated receipts and
24 revenues of the district during the next fiscal year. The board
25 shall, at least 30 days before the end of the fiscal year,
26 adopt, by a majority vote of its members, an operating budget
27 for the next fiscal year. An annual funding agreement shall be
28 executed with each regional asset allocated funds pursuant to
29 the operating budget.
30 (b) Public meetings and hearings.--The board shall conduct
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1 public hearings and meetings regarding the operating budget
2 requests of regional assets and the proposed annual operating
3 budget of the district.
4 Section 308. Restrictions upon activities of board members and
5 employees.
6 A member of the board or a district employee shall not,
7 concurrent with the member's or employee's position with the
8 district, be a party officer, public officer, public official,
9 public employee or a member of the immediate family of a party
10 officer, public officer or public official.
11 Section 309. Annual report.
12 The board of the district shall, no later than July 1 of each
13 year, prepare a comprehensive annual report of its activities
14 and operations for the previous year, make the report available
15 to the city, the county, other municipalities within the county,
16 regional assets and other interested groups and organizations
17 and conduct public meetings and hearings to receive public
18 comments and recommendations regarding the activities and
19 operations of the board.
20 CHAPTER 5
21 REGIONAL ASSETS
22 Section 501. Designation of assets.
23 (a) Basic assets.--The district may assume the financial
24 functions of the city and county with respect to the support of
25 regional civic facilities, regional parks, regional libraries,
26 professional sports facilities, regional cultural facilities and
27 other organizations and properties vital to the quality of life
28 of the region.
29 (b) Limitations.--The district shall not provide financial
30 support for the following:
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1 (1) Any health care facility or institution which
2 predominantly provides elementary, secondary or higher
3 education or other training.
4 (2) Any park which contains fewer than 200 acres, except
5 for linear parks located in more than one city, township,
6 borough or home rule municipality, other than the county.
7 (3) Any asset which fails to serve a significant number
8 of persons who are not residents of the city, borough or
9 township within which the asset is located.
10 (4) Any library which is not a regional library resource
11 center, a district library center or which is not part of a
12 library system serving multiple municipalities.
13 Section 502. Cooperation and support agreements.
14 The district shall execute cooperation and support agreements
15 governing civic facilities, parks, libraries and sports
16 facilities supported by the district. The agreements shall be
17 executed by the district, the city and the county to the extent
18 the municipalities have contributed to the support of the
19 regional assets or where regional assets are located within
20 their boundaries and by any other person who owns, operates or
21 manages a regional asset. The agreements shall set forth the
22 manner in which the district will assume the financial functions
23 of the city and county with respect to the support of the
24 regional assets. Each cooperation and support agreement shall
25 provide for comprehensive periodic financial reviews and audits
26 of the regional asset and may provide for a performance review
27 and audit of the regional asset.
28 CHAPTER 7
29 BONDS AND FUNDS OF DISTRICT
30 Section 701. Bonds.
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1 The district may authorize issues of bonds, sell bonds, use
2 net proceeds of bond sales, refund bonds, adopt pledges,
3 mortgages, covenants, indentures and trusts, exercise remedies
4 and confer additional remedies upon persons holding bonds in the
5 same manner as provided by sections 7 through 10 of the act of
6 June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
7 Convention Center Authority Act.
8 Section 702. Governmental immunity.
9 It is hereby declared to be the intent of the General
10 Assembly that the district created under this act and its
11 officers, officials and employees shall enjoy governmental
12 immunity except as provided by and subject to the provisions of
13 42 Pa.C.S. Ch. 85 Subchs. A (relating to general provisions) and
14 C (relating to actions against local parties).
15 Section 703. Funds of district.
16 All moneys of the district from whatever source derived shall
17 be paid to the treasurer of the district and invested in the
18 same manner as is provided for in section 13(a) through (d) of
19 the act of June 27, 1986 (P.L.267, No.70), known as the
20 Pennsylvania Convention Center Authority Act.
21 Section 704. Transfer of funds.
22 (a) City and county funds.--
23 (1) The city and county may, and are hereby authorized
24 to, make grants from current revenues to the district and to
25 assist in defraying the costs of managing, operating,
26 maintaining, financing and servicing the debt of regional
27 assets, or parts of regional assets, to enter into long-term
28 agreements providing for payment of the costs and to enter
29 into long-term leases or subleases as lessee or sublessee of
30 all or part of a regional asset.
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1 (2) Obligations of the city and county to make grants or
2 lease or sublease payments to the district shall not, even if
3 based on debt obligations of the district, constitute debts
4 of the city and county within the meaning of any
5 constitutional or statutory provision and shall be payable
6 only to the extent that current revenues of the city and
7 county are available.
8 (3) The city and county may issue general obligation
9 bonds for the purpose of obtaining funds for the acquisition
10 or improvement of regional assets or parts of regional
11 assets.
12 (b) Commonwealth grants and redevelopment assistance
13 project.--The Commonwealth may contribute to the capital costs
14 of constructing regional assets by the issuance of Commonwealth
15 bonds and notes under Article XVI-B of the act of April 9, 1929
16 (P.L.343, No.176), known as The Fiscal Code. A project
17 undertaken by the district is hereby deemed to be a
18 redevelopment assistance project under which capital funds of
19 the Commonwealth may be expended under the provisions of the act
20 of May 20, 1949 (P.L.1633, No.493), known as the Housing and
21 Redevelopment Assistance Law, and, notwithstanding any
22 provisions of the Housing and Redevelopment Assistance Law, the
23 Department of Community Affairs is hereby authorized to make
24 capital grants directly to the district in furtherance of this
25 act.
26 Section 705. Pledge of revenues by district and Commonwealth.
27 In addition to the remedies of obligees of the district
28 provided by sections 701 and 702, the district is expressly
29 authorized to pledge all or any part of the net revenues of
30 additional sales and use tax revenues in connection with the
19930H2355B2947 - 20 -
1 issuance of bonds or the incurring of obligations under leases
2 in order to secure the payment of the bonds and obligations. The
3 Commonwealth, with the signature of the Governor and the State
4 Treasurer, may also pledge the revenues in support of or in
5 connection with the issuance of bonds or the incurring of
6 obligations under leases by the district in order to further
7 secure the payment of the bonds and obligations.
8 CHAPTER 9
9 ADDITIONAL SALES AND USE TAX
10 Section 901. Definitions.
11 The following words and phrases when used in this chapter
12 shall have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Department." The Department of Revenue of the Commonwealth.
15 "Tax." The tax authorized to be imposed by the county under
16 this chapter.
17 Section 902. Construction.
18 The tax imposed by the governing body of the county under
19 this chapter shall be in addition to any tax imposed by the
20 Commonwealth under Article II of the act of March 4, 1971
21 (P.L.6, No.2), known as the Tax Reform Code of 1971. Except for
22 the differing situs provisions under section 904, the provisions
23 of Article II of the Tax Reform Code of 1971 shall apply to the
24 tax.
25 Section 903. Imposition.
26 (a) Sales.--The governing body of the county may levy and
27 assess upon each separate sale at retail of tangible personal
28 property or services, as defined in Article II of the act of
29 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
30 1971, within the boundaries of the county, a tax on the purchase
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1 price. The tax shall be collected by the vendor from the
2 purchaser and shall be paid over to the Commonwealth as provided
3 in this chapter.
4 (b) Use.--In any county within which the tax authorized in
5 subsection (a) is imposed, there shall be levied, assessed and
6 collected upon the use, within the county, of tangible personal
7 property purchased at retail, and on services purchased at
8 retail, as defined in Article II of the Tax Reform Code of 1971,
9 a tax on the purchase price. The tax shall be paid over to the
10 Commonwealth by the person who makes the use. The use tax
11 imposed under this chapter shall not be paid over to the
12 Commonwealth by any person who has paid the tax imposed by
13 subsection (a) or has paid the tax imposed by this subsection to
14 the vendor with respect to the use.
15 (c) Hotel.--In any county within which a tax authorized by
16 subsection (a) is imposed, there shall be levied, assessed and
17 collected an excise tax on the rent upon every occupancy of a
18 room or rooms in a hotel in the county. The tax shall be
19 collected by the operator or owner from the occupant and paid
20 over to the Commonwealth.
21 (d) Rate and uniformity.--
22 (1) The tax authorized by subsections (a), (b) and (c)
23 may be imposed at a rate of 1%.
24 (2) The tax imposed by subsections (a), (b) and (c)
25 shall be uniform.
26 (e) Tax computation.--The tax imposed under subsection (a)
27 shall be computed in the manner set forth in section 503(e) of
28 the act of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania
29 Intergovernmental Cooperation Authority Act for Cities of the
30 First Class.
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1 Section 904. Situs.
2 The situs of retail sales, vehicles, aircraft and motorcraft
3 sales and utility services shall be determined in the manner
4 specified by section 504 of the act of June 5, 1991 (P.L.9,
5 No.6), known as the Pennsylvania Intergovernmental Cooperation
6 Authority Act for Cities of the First Class.
7 Section 905. Licenses.
8 A license for the collection of the tax imposed by this
9 chapter shall be issued in the same manner as is provided for in
10 section 505 of the act of June 5, 1991 (P.L.9, No.6), known as
11 the Pennsylvania Intergovernmental Cooperation Authority Act for
12 Cities of the First Class.
13 Section 906. Rules and regulations; collection costs.
14 (a) Incorporation by reference.--Rules and regulations shall
15 be applicable to the taxes imposed under section 903 in the same
16 manner as is provided for in section 506(1) and (2) of the act
17 of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania
18 Intergovernmental Cooperation Authority Act for Cities of the
19 First Class.
20 (b) Reimbursement of collection costs.--The department, to
21 cover its costs of administration, shall be entitled to retain a
22 sum equal to costs of collection and shall inform the district
23 in writing monthly of the sum retained and the costs of
24 collection reimbursed. To provide a timely forecast and assure
25 consideration of the sum retained, the department shall estimate
26 its costs of collection for the next succeeding fiscal year and
27 provide the estimate, with all supporting detail, to the
28 district. When the annual operating budget for the department is
29 submitted to the General Assembly, the department shall also
30 submit to the chairman and minority chairman of the
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1 Appropriations Committee of the Senate and to the chairman and
2 minority chairman of the Appropriations Committee of the House
3 of Representatives the actual sums retained for costs of
4 collection in the preceding fiscal year, together with all
5 supporting details.
6 Section 907. Procedure and administration.
7 (a) Adoption of ordinance.--The governing body of the
8 county, in order to impose the tax authorized by section 903,
9 shall adopt an ordinance which shall refer to this chapter.
10 Prior to adopting an ordinance imposing the tax authorized by
11 section 903, the governing body of the county shall give public
12 notice of its intent to adopt the ordinance in the manner
13 provided by section 4 of the act of December 31, 1965 (P.L.1257,
14 No.511), known as The Local Tax Enabling Act, and shall conduct
15 at least one public hearing regarding the proposed adoption of
16 the ordinance. Notwithstanding any provision of law to the
17 contrary, the tax may be adopted either prior to or during the
18 fiscal year of the county or prior to or after the adoption of
19 the annual budget for the county. If the tax takes effect after
20 January 1 of any year, any disbursements received by the
21 district, qualified municipalities or the county under section
22 908(b) during the first calendar year in which the tax is in
23 effect shall be deposited into budgetary reserve accounts for
24 the district, any qualified municipalities or the county.
25 Amounts deposited into budgetary reserve accounts may be
26 budgeted for use in the next full fiscal year period by the
27 district, any qualified municipalities or the county in the
28 manner provided by this act or may be retained in budgetary
29 reserve accounts, without lapsing, for use during unanticipated
30 fiscal emergencies as provided by ordinances adopted by the
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1 district, any qualified municipalities or the county. Funds
2 retained in budgetary reserve accounts for unanticipated fiscal
3 emergencies shall not be subject to the requirements of this act
4 regarding the utilization of disbursements.
5 (b) Notification to department.--A certified copy of the
6 ordinance imposing the tax shall be delivered to the department
7 no later than 90 days prior to the effective date of the
8 ordinance.
9 (c) Copy of repeal ordinance.--A certified copy of a repeal
10 ordinance shall be delivered to the department at least 30 days
11 prior to the effective date of the repeal.
12 Section 908. Dedication and disbursement.
13 (a) Allegheny Regional Asset District Sales and Use Tax
14 Fund.--There is hereby created the Allegheny Regional Asset
15 District Sales and Use Tax Fund. The State Treasurer shall be
16 custodian of the fund which shall be subject to the provisions
17 of law applicable to funds listed in section 302 of the act of
18 April 9, 1929 (P.L.343, No.176), known as The Fiscal Code. Taxes
19 imposed under section 903 shall be received by the department
20 and paid to the State Treasurer and, along with interest and
21 penalties, less any collection costs allowed under this chapter
22 and any refunds and credits paid, shall be credited to the fund
23 not less frequently than every two weeks. During any period
24 prior to the credit of moneys to the fund, interest earned on
25 moneys received by the department and paid to the State
26 Treasurer under this chapter shall be deposited into the fund.
27 All moneys in the fund, including, but not limited to, moneys
28 credited to the fund under this section, prior year encumbrances
29 and the interest earned thereon, shall not lapse or be
30 transferred to any other fund, but shall remain in the fund and
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1 must be used exclusively as provided in this section. Pending
2 their disbursement, moneys received on behalf of or deposited
3 into the fund shall be invested or reinvested as are other
4 moneys in the custody of the State Treasurer in the manner
5 provided by law. All earnings received from the investment or
6 reinvestment of the moneys shall be credited to the fund.
7 (b) Disbursements.--On or before the tenth day of every
8 month, the State Treasurer shall make the following
9 disbursements on behalf of the county imposing the tax out of
10 the moneys which are, as of the last day of the previous month,
11 contained in the fund:
12 (1) One-half of the moneys to the district for use by it
13 in the manner provided by this act, provided that the
14 district shall not utilize more than 1% of the moneys
15 received by the district for the purpose of administrative
16 expenses.
17 (2) One-fourth of the moneys to qualified municipalities
18 for use by the municipalities in the manner provided by this
19 act.
20 (3) One-fourth of the moneys to the county for use by
21 the county in the manner provided by this act.
22 CHAPTER 11
23 LOCAL TAX RELIEF AND ASSISTANCE
24 TO LOCAL GOVERNMENTS
25 Section 1101. Assistance to local governments.
26 (a) Disbursements to qualified municipalities.--The State
27 Treasurer shall distribute disbursements to qualified
28 municipalities in the manner provided in this section. Each
29 qualified municipality shall receive a portion of the total
30 disbursement to qualified municipalities which is equal to the
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1 total disbursement to qualified municipalities multiplied by the
2 ratio of weighted tax revenues of the municipality divided by
3 the sum of the weighted tax revenues of all qualified
4 municipalities located in the county.
5 (b) Qualified municipalities.--Municipalities qualified to
6 receive disbursements under this section are municipalities
7 located within the county, other than the county, which:
8 (1) (i) impose an earned income tax at a rate equal to
9 or greater than .25% under the act of December 31, 1965
10 (P.L.1257, No.511), known as The Local Tax Enabling Act,
11 and a real property tax; or
12 (ii) impose a real property tax as expressed in
13 total mills reported to the Department of Community
14 Affairs equal to or greater than 75% of the allowable
15 general purpose millage rate under the applicable
16 municipal code or, if the municipality has adopted a home
17 rule charter or optional plan under the act of April 13,
18 1972 (P.L.184, No.62), known as the Home Rule Charter and
19 Optional Plans Law, the code under which the municipality
20 was governed prior to adoption of the home rule charter
21 or optional plan; and
22 (2) not later than 60 days after the governing body of
23 the county gives public notice of its intention to adopt an
24 ordinance under section 907(a), adopt a municipal resolution
25 urging the county to create the district and adopt the tax.
26 (c) Additional qualified municipalities.--Municipalities
27 which are not qualified municipalities because of the failure to
28 adopt a timely resolution may, not sooner than 36 months
29 following adoption of an ordinance imposing the tax, become
30 qualified municipalities by adopting resolutions indicating that
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1 the municipalities support imposition of the tax authorized by
2 Chapter 9, urge its continuation and intend to accept
3 disbursements as provided by this section.
4 (d) Weighted tax revenues.--For the purpose of this section,
5 weighted tax revenues are total tax revenues from all sources of
6 a municipality divided by the ratio of its per capita market
7 value to the per capita market value of its county. The per
8 capita market value means the total market value of all real
9 property divided by population as determined by the most recent
10 decennial census. Calculations of weighted tax revenues shall be
11 made by the Department of Community Affairs and certified to the
12 State Treasurer based upon information reported to the
13 Department of Community Affairs by municipalities within its
14 boundaries, subject to review, verification and approval by the
15 Department of Community Affairs.
16 Section 1102. Tax relief.
17 (a) County and city.--
18 (1) The county and the city shall utilize the
19 disbursements received from the State Treasurer under section
20 908(b) in the first full calendar year in which the
21 disbursements are received for the reduction of local taxes.
22 (2) Effective January 1 of the first full calendar year
23 in which disbursements are received pursuant to section
24 908(b), the county and the city shall repeal any tax imposed
25 upon personal property.
26 (3) Effective January 1 of the first full calendar year
27 in which disbursements are received pursuant to section
28 908(b), the city shall reduce to an amount not to exceed 5%
29 the tax on admissions to places of amusement, athletic events
30 and the like, and on motion picture theaters.
19930H2355B2947 - 28 -
1 (4) The county and the city shall utilize all or a
2 portion of revenues remaining from disbursements received
3 pursuant to section 908(b) after reducing taxes as provided
4 by paragraphs (1) and (2) for the implementation of programs
5 to exempt in whole or in part longtime senior citizen owner
6 occupants of personal residences from real property tax
7 increases not associated with actual improvements to the
8 assessed property in a manner authorized by the act of
9 December 13, 1988 (P.L.1190, No.146), known as the First and
10 Second Class County Property Tax Relief Act. Property
11 eligible for tax relief under this paragraph shall be limited
12 to a primary personal residence owned by a single person age
13 65 or older or by married persons if either spouse is 65
14 years of age or older. Tax relief provided pursuant to this
15 paragraph shall be limited to persons eligible for property
16 tax rebates under the act of March 11, 1971 (P.L.104, No.3),
17 known as the Senior Citizens Rebate and Assistance Act.
18 (b) Other municipalities.--
19 (1) Municipalities other than the county and the city
20 shall utilize at least two-thirds of the disbursements
21 received under section 908(b) in the first full calendar year
22 in which the disbursements are received for the reduction of
23 local taxes.
24 (2) Municipalities other than the county and the city
25 shall utilize all or a portion of disbursements received for
26 the purpose of reducing local taxes for the implementation of
27 programs for real property tax relief as provided by
28 subsection (a)(4).
29 Section 1103. Contributions to councils of government.
30 Beginning in the second full calendar year in which
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1 disbursements are received from the State Treasurer under
2 section 908(b), and in each year thereafter, municipalities
3 other than the county and the city shall contribute an amount
4 equal to at least 25% of the increase in the amount of such
5 disbursements received in excess of the prior calendar year to
6 entities or organizations created pursuant to the act of July
7 12, 1972 (P.L.762, No.180), referred to as the Intergovernmental
8 Cooperation Law, including councils of government. The
9 contributions made pursuant to this section shall not be used to
10 offset or reduce other contributions made to councils of
11 government or other intergovernmental entities or organizations.
12 CHAPTER 13
13 MISCELLANEOUS PROVISIONS
14 Section 1301. Repeals.
15 (a) Specific.--Section 8(6) of the act of December 31, 1965
16 (P.L.1257, No.511), known as The Local Tax Enabling Act, is
17 repealed insofar as it is inconsistent with this act.
18 (b) General.--All other acts and parts of acts are repealed
19 insofar as they are inconsistent with this act.
20 Section 1302. Effective date.
21 This act shall take effect immediately.
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