PRINTER'S NO. 1167
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
946
Session of
2015
INTRODUCED BY FONTANA AND SCHWANK, JULY 10, 2015
REFERRED TO FINANCE, JULY 10, 2015
AN ACT
Amending the act of November 26, 1997 (P.L.508, No.55), entitled
"An act providing for the tax exemption of institutions of
purely public charity; exempting real property owned by
State-related universities or Federal Government
instrumentalities from taxation; providing for unfair
competition; imposing penalties; and making repeals," further
providing for legislative findings, for definitions and for
criteria for institutions of purely public charity; and
providing for tax on real estate.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2(a) of the act of November 26, 1997
(P.L.508, No.55), known as the Institutions of Purely Public
Charity Act, is amended by adding a paragraph to read:
Section 2. Legislative intent.
(a) Findings.--The General Assembly finds and declares as
follows:
* * *
(8) It is necessary and proper for local governments to
have the option to ensure the continued viability of certain
essential services it provides or causes to be provided by
requiring a contribution from owners of tax-exempt properties
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toward the cost of the services.
* * *
Section 2. Section 3 of the act is amended by adding a
definition to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Governing body." Any city council, borough council,
incorporated town council, board of county commissioners or
their home rule successor in function, board of township
commissioners, board of township supervisors, governing council
of a home rule municipality or optional plan municipality or
governing council of a similar general purpose unit of
government that may be created by statute after the effective
date of this definition.
* * *
Section 3. Section 5(b)(6) of the act is amended to read:
Section 5. Criteria for institutions of purely public charity.
* * *
(b) Charitable purpose.--The institution must advance a
charitable purpose. This criterion is satisfied if the
institution is organized and operated primarily to fulfill any
one or combination of the following purposes:
* * *
(6) Accomplishment of a purpose which is recognized as
important and beneficial to the public and which advances
social, scientific, environmental, moral or physical
objectives.
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* * *
Section 4. The act is amended by adding a section to read:
Section 7.1. Tax on real estate.
(a) Authorization.--Notwithstanding any other provision of
law, the governing body of a municipality may, through
ordinance, impose the real estate tax authorized under
subsection (b) on real property owned by an institution of
purely public charity within the municipality.
(b) Real estate tax.--The governing body may impose a real
estate tax on real property located within the municipality and
owned by an institution of purely public charity. The following
shall apply:
(1) The tax shall be imposed on 100% of the assessed
value of the land owned by the institution of purely public
charity and may not be imposed on the assessed value of any
structure that sits upon the land.
(2) The tax may not be levied on a per-parcel basis but
shall be levied against the aggregate assessed value of the
real property owned by the institution of purely public
charity within the municipality.
(3) The ordinance authorizing the real estate tax shall
exempt the first $500,000 of aggregate assessed value of the
real property owned by the institution of purely public
charity from taxation.
(c) Enactment of ordinance or resolution.--
(1) Prior to adopting an ordinance imposing a real
estate tax under this section, the governing body shall adopt
a proposed ordinance that shall include all of the following
information:
(i) The content of the ordinance that will be
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enacted, including the effective date.
(ii) A statement that the proposed ordinance is
being adopted pursuant to and subject to the requirements
of this section.
(2) The governing body shall make the proposed ordinance
available for public inspection at least 20 days prior to its
adoption and shall hold at least one public hearing on the
proposed ordinance prior to its adoption.
(3) The governing body must give public notice of its
intent to adopt the proposed ordinance. Publication of the
notice shall be made by advertisement once a week for three
weeks in a newspaper of general circulation within the
municipality if there is a newspaper of general circulation
and, if there is not, the publication shall be made in a
newspaper of general circulation within the county in which
the advertising municipality is located.
(d) Prohibition.--Nothing in this section may be construed
to permit a governing body to impose a real estate tax on any of
the following:
(1) Property owned by the Commonwealth.
(2) Property owned by a political subdivision of the
Commonwealth.
(3) Property owned by the Commonwealth and local
authorities.
(4) Property owned by police, fire, including volunteer
fire and relief, public works or emergency services.
(5) Property owned by the Federal Government.
(e) Uniformity.--A real estate tax imposed under this
section shall apply to all institutions of purely public charity
owning tax-exempt property within the municipality.
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Section 5. This act shall take effect in 60 days.
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