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Pennsylvania House of Representatives
04/25/2024 03:25 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=32346
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: August 27, 2020 01:03 PM
From: Representative Marty Flynn
To: All House members
Subject: RECIRCULATION: Providing Clarity on Tax Exempt Status for Nonprofit Organizations
 
The Pennsylvania Constitution clearly states that nonprofit organizations are only exempt from property taxes for the portion of property that is actually and regularly used for the operation of the nonprofit. However, certain organizations are currently not paying taxes on property that is being used for commercial purposes, which goes against the rules laid out by our Constitution.
 
To bring clarity to this issue and assist local governments with the collection of property taxes, I am introducing a two-bill package which would ensure that the property tax exemption for nonprofits is functioning as intended by only exempting that land actually used for charitable purposes. As just one example, these changes would clarify that land being used to operate a fast food restaurant on a college campus is subject to property taxes. By reiterating language directly from the state Constitution, we can solve any confusion about what is or is not taxable and help prevent the average taxpaying family from having to cover for organizations that are not paying their fair share.
 
Making our laws about taxation and tax-exempt status straightforward and unambiguous is a win for everyone. Please stand with our local governments and taxpayers by co-sponsoring both pieces of legislation.
 
The first bill would amend The General County Assessment Law by inserting language directly from the Constitution regarding the tax exempt status of nonprofit institutions.
 
The second bill would amend Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes with near identical language as in the first bill.


Document #1

Introduced as HB2892

Description: The first bill would amend The General County Assessment Law by inserting language directly from the Constitution regarding the tax exempt status of nonprofit institutions.
 
  View Attachment
 

Document #2

Introduced as HB2893

Description: The second bill would amend Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes with near identical language as in the first bill.  . 
 
  View Attachment