THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY KASUNIC, DINNIMAN AND YUDICHAK, OCTOBER 18, 2011

REFERRED TO FINANCE, OCTOBER 18, 2011  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in State System of Higher Education,

providing for exemption from taxation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding a

section to read:

Section 2003-A.2.  Exemption from Taxation.--The effectuation

of the authorized purpose of the system shall and will be in all

respects for the benefit of the people of this Commonwealth, for

the increase of their commerce and prosperity and for the

improvement of their health and living conditions; and, since as

a public instrumentality it will be performing essential

governmental functions in effectuating such purposes, the system

shall not be required to pay any taxes or assessments upon any

property acquired or used by it for such purposes, and the bonds

issued by the system and the interest and income therefrom shall

at all times be free from State and local taxation. This

exemption shall not extend to gift, estate, succession or

inheritance taxes or any other taxes not levied directly on the

bonds, their transfer or the income from or the realization of

profits on the sale of the bonds.

Section 2.  This act shall take effect in 60 days.