PRINTER'S NO. 1081
No. 147 Session of 2005
INTRODUCED BY EACHUS, ALLEN, ARGALL, BENNINGHOFF, BOYD, BUNT,
CALTAGIRONE, CAPPELLI, CLYMER, CORRIGAN, CRAHALLA, DeLUCA,
DENLINGER, DERMODY, DeWEESE, FABRIZIO, FREEMAN, GEORGE,
GERGELY, GOOD, GOODMAN, GRUCELA, HERSHEY, JOSEPHS, LEVDANSKY,
McILHATTAN, NICKOL, PETRARCA, PETRONE, PICKETT, READSHAW,
ROEBUCK, RUBLEY, SANTONI, SAYLOR, SOLOBAY, STABACK, STURLA,
SURRA, TANGRETTI, THOMAS, TIGUE, WALKO, WANSACZ, WHEATLEY,
YOUNGBLOOD AND YUDICHAK, MARCH 15, 2005
REFERRED TO COMMITTEE ON COMMERCE, MARCH 15, 2005
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to
2 determine the effectiveness of keystone opportunity zones,
3 keystone opportunity expansion zones and keystone opportunity
4 improvement zones.
5 WHEREAS, The Keystone Opportunity Zone, Keystone Opportunity
6 Expansion Zone and Keystone Opportunity Improvement Zone Act was
7 established to provide for the creation of keystone opportunity
8 zones, keystone opportunity expansion zones and keystone
9 opportunity improvement zones to foster economic opportunities
10 in this Commonwealth; and
11 WHEREAS, The primary components of keystone opportunity
12 zones, keystone opportunity expansion zones and keystone
13 opportunity improvement zones enable qualifying business and
14 residential property tax owners to be exempt from certain State
15 and local taxes, including real property taxes; and
16 WHEREAS, The real estate tax is the main source of locally
1 generated revenue to fund Pennsylvania's school districts and
2 municipalities and the base for the property tax is the value of
3 all real property within the borders of each school district and
4 municipality; and
5 WHEREAS, School districts and municipalities must often
6 increase property taxes because of an increase in revenue needs,
7 a reduction in the actual collection of revenues or an
8 alteration of the tax base; and
9 WHEREAS, Such reductions in the collection of revenues will
10 likely result when a significant portion of a school district's
11 or municipality's property is exempted from local property taxes
12 under the keystone opportunity zone, keystone opportunity
13 expansion zone or the keystone opportunity improvement zone
14 programs; and
15 WHEREAS, School districts and municipalities will be
16 encouraged to shift this financial burden to the remaining
17 taxable property in their boundaries; and
18 WHEREAS, No measurable data has been collected with regard to
19 the overall effectiveness of the keystone opportunity zone,
20 keystone opportunity expansion zone and keystone opportunity
21 improvement zone programs in sustaining real and long-term
22 economic growth in qualifying regions; therefore be it
23 RESOLVED, That the House of Representatives direct the
24 Legislative Budget and Finance Committee to determine the
25 effectiveness of the keystone opportunity zone, keystone
26 opportunity expansion zone and keystone opportunity improvement
27 zone programs in this Commonwealth; and be it further
28 RESOLVED, That, in furtherance of its study, the Legislative
29 Budget and Finance Committee shall:
30 (1) Identify the programs' effects on economic
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1 development in keystone opportunity zone, keystone
2 opportunity expansion zone and keystone opportunity
3 improvement zone areas as compared to nearby areas that do
4 not contain tax-free zones.
5 (2) Discuss any major trends in the types of new
6 business that have resulted from these programs and include
7 an estimate of the total number of new jobs that have been
8 created since the programs' inception.
9 (3) Examine the potential effects of statutory
10 requirements on school districts and municipalities
11 throughout Pennsylvania.
12 (4) Identify the potential loss of revenue from tax-
13 exempt properties that will shift to those remaining in the
14 tax base of each applicable school district and municipality
15 and discuss alternative means for school districts and
16 municipalities to recoup this revenue;
17 and be it further
18 RESOLVED, That the Legislative Budget and Finance Committee
19 report all findings, conclusions and recommendations to the
20 House of Representatives within six months of the passage of
21 this resolution.
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