PRINTER'S NO. 704
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE RESOLUTION
No.
110
Session of
2023
INTRODUCED BY COLEMAN AND DUSH, MAY 3, 2023
REFERRED TO FINANCE, MAY 3, 2023
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
conduct a performance audit of the Neighborhood Improvement
Zone and Allentown Neighborhood Improvement Zone Development
Authority programs administered by the Department of Revenue.
WHEREAS, Act 50 of 2009 added Article XVI-B to the act of
April 9, 1929 (P.L.343, No.176), known as the Fiscal Code,
(enabling act) and created a neighborhood improvement zone (NIZ)
in a city of the third class with a population of at least
106,000 and not more than 107,000, based on the 2000 Federal
decennial census; and
WHEREAS, The enabling act created a contracting authority
which was able to designate a NIZ of not greater than 130 acres
in the city, as well as construct a stadium, arena or other
structure owned or leased by a professional sports organization;
and
WHEREAS, The enabling act directed that the Neighborhood
Improvement Zone Fund be established and that the Department of
Revenue provide certain tax revenues, that would otherwise be
collected and retained by the Department of Revenue for the
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benefit of the Commonwealth, to the Neighborhood Improvement
Zone Fund; and
WHEREAS, The enabling act provided that the duration of the
NIZ would be in effect for a period equal to the length of time
of the bonds that are initially issued; and
WHEREAS, The act was later amended to extend the duration of
the NIZ to be in effect for a period equal to one year following
retirement of all bonds issued to finance or refinance the
improvement and development of the NIZ or the construction of
the facility or the facility complex; and
WHEREAS, The City of Allentown in Lehigh County was approved
to create a NIZ within the city; and
WHEREAS, Pursuant to Article XIX-B of the act of March 4,
1971, (P.L.6, No.2), known as the Tax Reform Code of 1971,
$87,336,694.03 in General Fund revenue was attributable to the
NIZ for program year 2022, according to the Department of
Revenue; therefore be it
RESOLVED, That the Senate direct the Legislative Budget and
Finance Committee to conduct a performance audit of the
Neighborhood Improvement Zone and the Allentown Neighborhood
Improvement Zone Development Authority programs administered by
the Department of Revenue:
(1) To determine the effectiveness of the Neighborhood
Improvement Zone and Allentown Neighborhood Improvement Zone
Development Authority in benefiting the economic development
of the Commonwealth, city and county.
(2) To operate within the requirements established by
Article XIX-B of the Tax Reform Code of 1971.
(3) To ensure that the tax revenues considered as
attributable to the Neighborhood Improvement Zone are related
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to activities taking place therein.
(4) To evaluate the tax revenues collected within the
Neighborhood Improvement Zone, including, but not limited to,
employer withholding, employer compensation, sales and use,
corporate net income, bank share, realty transfer, cigarette,
other tobacco and liquor;
and be it further
RESOLVED, That the Legislative Budget and Finance Committee
report its findings and recommendations to the chair and
minority chair of the Appropriations Committee of the Senate
within six months of the adoption of this resolution.
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