PRINTER'S NO. 4192
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
953
Session of
2020
INTRODUCED BY RABB, FREEMAN, ROTHMAN, PASHINSKI, HOHENSTEIN,
HILL-EVANS, ROZZI, DeLUCA, CIRESI, YOUNGBLOOD, CALTAGIRONE,
MADDEN, McNEILL AND INNAMORATO, JULY 30, 2020
REFERRED TO COMMITTEE ON FINANCE, JULY 30, 2020
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
conduct a study on tax-exempt nonprofit corporations
registered with the Department of State.
WHEREAS, A nonprofit corporation is a corporation with
members or shareholders who may not receive any monetary profits
of the corporation; and
WHEREAS, A nonprofit corporation may be formed for reasons,
including, but not limited to, charity, education, health,
athletics, religion and civics; and
WHEREAS, A nonprofit corporation must be able to fulfill its
purpose without providing financial benefit to its director,
officers or members except for salaries and expenses; and
WHEREAS, Under the laws of this Commonwealth, many nonprofit
corporations are exempt from taxation due to the requirement
that nonprofit corporations are expected to contribute to the
common good of this Commonwealth and lessen the burden of State
government; and
WHEREAS, Section 2 of Article VIII of the Constitution of
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Pennsylvania states that only "institutions of purely public
charity" may be exempt from paying State and local taxes,
however, ambiguity exists, as both the General Assembly and the
Supreme Court of the Commonwealth have struggled to establish
clear criteria for what constitutes a "purely public charity";
and
WHEREAS, Many tax-exempt nonprofit corporations generate
greater income than expenses, yet still retain a tax-exempt
status due to claims that the nonprofit corporations are of
value to this Commonwealth beyond a taxable amount; and
WHEREAS, It is imperative that the General Assembly have a
clear understanding of the current ecosystem of tax-exempt
nonprofit organizations in this Commonwealth to determine if the
nonprofit organizations are functioning in a manner that truly
contributes to the common good of this Commonwealth and lessens
the burden of State government, as opposed to placing an unfair
tax burden on working class residents of this Commonwealth;
therefore be it
RESOLVED, That the House of Representatives direct the
Legislative Budget and Finance Committee to conduct a study on
tax-exempt nonprofit corporations registered with the Department
of State; and be it further
RESOLVED, That, in conducting the study, the Legislative
Budget and Finance Committee shall review and evaluate the
Commonwealth's oversight of tax-exempt nonprofit corporations
through the Department of State and the Office of Attorney
General; and be it further
RESOLVED, That the study examine the impact that tax-exempt
nonprofit organizations have on tax revenue generated to the
Commonwealth; and be it further
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RESOLVED, That the Legislative Budget and Finance Committee
report its findings to the General Assembly within one year from
the adoption of this resolution.
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