§ 2.  Exemptions and special provisions.

(a) The General Assembly may by law exempt from taxation:

(i)  Actual places of regularly stated religious worship;

(ii)  Actual places of burial, when used or held by a person or organization deriving no private or corporate profit therefrom and no substantial part of whose activity consists of selling personal property in connection therewith;

(iii)  That portion of public property which is actually and regularly used for public purposes;

(iv)  That portion of the property owned and occupied by any branch, post or camp of honorably discharged servicemen or servicewomen which is actually and regularly used for benevolent, charitable or patriotic purposes; and

(v)  Institutions of purely public charity, but in the case of any real property tax exemptions only that portion of real property of such institution which is actually and regularly used for the purposes of the institution.

(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 100% of the assessed value of each 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.

(c)  Citizens and residents of this Commonwealth, who served in any war or armed conflict in which the United States was engaged and were honorably discharged or released under honorable circumstances from active service, shall be exempt from the payment of all real property taxes upon the residence occupied by the said citizens and residents of this Commonwealth imposed by the Commonwealth of Pennsylvania or any of its political subdivisions if, as a result of military service, they are blind, paraplegic or double or quadruple amputees or have a service-connected disability declared by the United States Veterans Administration or its successor to be a total or 100% permanent disability, and if the State Veterans' Commission determines that such persons are in need of the tax exemptions granted herein. This exemption shall be extended to the unmarried surviving spouse upon the death of an eligible veteran provided that the State Veterans' Commission determines that such person is in need of the exemption.

(Apr. 23, 1968, P.L.App.9, Prop. No.5; May 15, 1973, P.L.451, J.R.1; Nov. 8, 1977, P.L.361, J.R.1; Nov. 6, 1984, 1982 P.L.1478, J.R.2; Nov. 5, 1985, P.L.556, J.R.2; Nov. 4, 1997, P.L.633, J.R.1; Nov. 7, 2017, 2018 P.L.1197, J.R.1)

 

2018 Amendment.  Joint Resolution No.1 of 2017 amended subsec. (b)(vi).

Rejection of Proposed 1989 Amendment.  The question of amending subsection (b) to permit local taxing authorities to reduce tax rates on residential real property to the extent of additional revenues obtained from personal income taxes, as more fully set forth in Joint Resolution No.1 of 1989, was submitted to the electors at the municipal election on May 16, 1989, and was rejected. Section 1 of Article XI prohibits the submission of an amendment more often than once in five years.

1985 Amendment.  Joint Resolution No.2 amended subsec. (c).

1984 Amendment.  Joint Resolution No.2 of 1982 added subsec. (b)(v).

1973 Amendment.  Joint Resolution No.1 amended subsec. (b)(i).

1968 Amendment.  Proposal No.5 renumbered former section 2 to present section 5 and added present section 2. Section 4 of Proposal No.5 provided that section 2 shall take effect as soon as possible but no later than July 1, 1970.