THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY O'PAKE, LOGAN, MUSTO, STOUT, WASHINGTON, FONTANA, KASUNIC, KITCHEN AND BOSCOLA, FEBRUARY 19, 2009

REFERRED TO FINANCE, FEBRUARY 19, 2009  

A JOINT RESOLUTION

Proposing integrated amendments to the Constitution of the

Commonwealth of Pennsylvania, further providing for

uniformity of taxation and for tax exemptions and special tax

provisions.

The General Assembly of the Commonwealth of Pennsylvania

hereby resolves as follows:

Section 1.  The General Assembly finds and declares as

follows:

(1)  The system of funding public education in this

Commonwealth is broken, relying too heavily on the real

property tax, which does not accurately reflect an

individual's ability to pay.

(2)  Many senior citizens and others living on fixed to

moderate incomes are being taxed out of their homes, while

many young families just starting out are prevented from

purchasing a first home and attaining the American dream of

homeownership because of the additional financial burden of

real property taxes.

(3)  Of all the real property taxes imposed by political

subdivisions, the homeowner school property tax represents

the greatest burden and an extreme financial hardship for too

many of our citizens.

(4)  The Constitution currently prohibits the General

Assembly from eliminating property taxes on homestead

property only and from imposing a graduated personal income

tax.

(5)  This constitutional amendment is intended to seek

voter approval to eliminate the ability of school districts

to impose real estate taxes on homestead property and to

replace that revenue with funds derived from other sources.

These sources include the imposition of a graduated income

tax to be used solely to fund homestead property tax

elimination.

(6)  The Commonwealth is in the midst of a property tax

crisis that needs to be addressed. The citizens of this

Commonwealth, especially the children, deserve quality

schools that provide quality educations. However, these needs

must be funded through an equitable system of taxation which

does not rely on the taxing of homestead property.

Section 2.  The following integrated amendments to the

Constitution of Pennsylvania are proposed in accordance with

Article XI:

(1)  That section 1 of Article VIII be amended to read:

§ 1.  Uniformity of taxation.

[All] (a)  Except as provided under subsection (b), all taxes

shall be uniform, upon the same class of subjects, within the

territorial limits of the authority levying the tax, and shall

be levied and collected under general laws.

(b)  Any school district levying a tax on real property shall

be prohibited from levying the tax on homestead property for

taxable years beginning after the last day of the fiscal year in

which this subsection is ratified.

(2)  That section 2(b) of Article VIII be amended to read:

§ 2.  Exemptions and special provisions.

* * *

(b)  The General Assembly may, by law:

(i)  Establish standards and qualifications for private

forest reserves, agricultural reserves, and land actively

devoted to agricultural use, and make special provision for the

taxation thereof;

(ii)  Establish as a class or classes of subjects of taxation

the property or privileges of persons who, because of age,

disability, infirmity or poverty are determined to be in need of

tax exemption or of special tax provisions, and for any such

class or classes, uniform standards and qualifications. The

Commonwealth, or any other taxing authority, may adopt or employ

such class or classes and standards and qualifications, and

except as herein provided may impose taxes, grant exemptions, or

make special tax provisions in accordance therewith. No

exemption or special provision shall be made under this clause

with respect to taxes upon the sale or use of personal property,

and no exemption from any tax upon real property shall be

granted by the General Assembly under this clause unless the

General Assembly shall provide for the reimbursement of local

taxing authorities by or through the Commonwealth for revenue

losses occasioned by such exemption;

(iii)  Establish standards and qualifications by which local

taxing authorities may make uniform special tax provisions

applicable to a taxpayer for a limited period of time to

encourage improvement of deteriorating property or areas by an

individual, association or corporation, or to encourage

industrial development by a non-profit corporation; and

(iv)  Make special tax provisions on any increase in value of

real estate resulting from residential construction. Such

special tax provisions shall be applicable for a period not to

exceed two years.

(v)  Establish standards and qualifications by which local

taxing authorities in counties of the first and second class may

make uniform special real property tax provisions applicable to

taxpayers who are longtime owner-occupants as shall be defined

by the General Assembly of residences in areas where real

property values have risen markedly as a consequence of the

refurbishing or renovating of other deteriorating residences or

the construction of new residences.

(vi)  Authorize local taxing authorities to exclude from

taxation an amount based on the assessed value of homestead

property. The exclusions authorized by this clause shall not

exceed one-half of the median assessed value of all homestead

property within a local taxing jurisdiction. A local taxing

authority may not increase the millage rate of its tax on real

property to pay for these exclusions.

(vii)  For purposes of funding the elimination of school

district real estate taxes on homestead property, establish

nonuniform rates of taxation for any tax levied on personal

income, increasing in proportion to the level of personal

income.

* * *

Section 3.  (a)  Upon the first passage by the General

Assembly of these proposed constitutional amendments, the

Secretary of the Commonwealth shall proceed immediately to

comply with the advertising requirements of section 1 of Article

XI of the Constitution of Pennsylvania and shall transmit the

required advertisements to two newspapers in every county in

which such newspapers are published in sufficient time after

passage of these proposed constitutional amendments.

(b)  Upon the second passage by the General Assembly of these

proposed constitutional amendments, the Secretary of the

Commonwealth shall proceed immediately to comply with the

advertising requirements of section 1 of Article XI of the

Constitution of Pennsylvania and shall transmit the required

advertisements to two newspapers in every county in which such

newspapers are published in sufficient time after passage of

these proposed constitutional amendments. The Secretary of the

Commonwealth shall submit the proposed constitutional amendments

under section 1 to the qualified electors of this Commonwealth

as a single ballot question at the first primary, general or

municipal election which meets the requirements of and is in

conformance with section 1 of Article XI of the Constitution of

Pennsylvania and which occurs at least three months after the

proposed constitutional amendments are passed by the General

Assembly.