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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | June 23, 2016 03:18 PM |
|---|---|
| From: | Representative Joseph A. Petrarca |
| To: | All House members |
| Subject: | Land Banks |
| In the near future, I will be introducing legislation that will exclude the assessment of a realty transfer tax on any real estate transaction involving a Land Bank. As you may know, Act 153 of 2012 amended Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes allowing for the creation of Land Banks in the Commonwealth. These bodies are governmental entities that focus on converting vacant, abandoned, tax-delinquent, and foreclosed properties into productive use. They can address the problem of blighted properties in a region by serving as a center of planning and program coordination for member municipalities. Shortly after enactment of this law, Westmoreland County established the Westmoreland County Land Bank (WCLB), which currently consists of 18 municipalities and their respective school districts. WCLB actively pursues opportunities to obtain blighted properties, ultimately returning them to the tax roll, while also providing new commercial development and affordable housing opportunities in local communities. For example, the WCLB recently acquired seven properties from a family estate that it plans to market as a possible 3-bedroom multi-family housing complex for moderate income families in Latrobe. In an effort to facilitate the success of Land Banks in the Commonwealth, Section 2109(b) of Act 153 of 2012 provided for state and local tax exemptions. It is my understanding that when enacted, the legislative intent was to exempt Land Banks from all state and local taxes (including realty transfer taxes). The Pennsylvania Department of Revenue, however, is assessing the realty transfer tax in certain transactions involving a Land Bank. My legislation would amend Section 1102-C.3 of The Tax Reform Code (Act 2 of 1971) by excluding any transaction involving a Land Bank from the assessment of the realty transfer tax, thereby further encouraging the rehabilitation of blighted properties in our communities. If you would like to learn more about the benefits of Land Banks, please visit the following website: www.pablightlibrary.com/quick-guide-land-banks-101/ |