PRINTER'S NO. 3729
No. 2767 Session of 1978
INTRODUCED BY (BY REQUEST), McCLATCHY, LASHINGER, KERNICK,
PYLES, GILLETTE, NOVAK, CESSAR, TRELLO, GOEBEL, GREENLEAF,
POLITE, PANCOAST, MEBUS, ZELLER, LYNCH, YOHN, McGINNIS,
GARZIA, TENAGLIO, E. Z. TAYLOR, E. H. SMITH, O'KEEFE,
STAPLETON, S. E. HAYES JR., FREIND, BROWN, HALVERSON, SPITZ,
KLINGAMAN, D. S. HAYES, FISCHER, LEHR, POTT, ARMSTRONG,
FISHER, WEIDNER, J. L. WRIGHT JR., WILSON, GALLEN, MILLER,
MOEHLMANN, HONAMAN, STAIRS, NOYE, W. D. HUTCHINSON AND
PETERSON, SEPTEMBER 13, 1978
REFERRED TO COMMITTEE ON RULES, SEPTEMBER 13, 1978
A JOINT RESOLUTION
1 Proposing an amendment to the Constitution of the Commonwealth
2 of Pennsylvania, further providing for real property taxes.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby resolves as follows:
5 Section 1. The following amendment to the Constitution of
6 the Commonwealth of Pennsylvania is proposed in accordance with
7 the provisions of Article XI thereof:
8 That the Constitution be amended by adding an article to
9 read:
10 ARTICLE XII
11 REAL PROPERTY TAXATION
12 § 1. Maximum real property tax.
13 (a) The maximum amount of ad valorem tax on real property
14 shall not exceed the sum of 1% of the actual full cash market
1 value of such property. The 1% tax shall be collected per year
2 according to law.
3 (b) The limitation provided for in subsection (a) shall not
4 apply to ad valorem taxes or special assessments to pay the
5 interest and redemption charges on any indebtedness approved by
6 the voters prior to the time this article becomes effective.
7 § 2. Cash value.
8 (a) The full cash value is defined to mean the county
9 assessors' valuation of real property as shown on the 1977-1978
10 tax bill under "actual cash value," or thereafter, the appraised
11 value of real property when purchased, newly constructed, or a
12 change in ownership has occurred after the 1977-1978 assessment.
13 All real property not already assessed up to the 1977-1978 tax
14 level may be reassessed to reflect that valuation.
15 (b) The fair market value base may reflect from year to year
16 the inflationary rate not to exceed 2% for any given year or
17 reduction as shown in the consumer price index or comparable
18 data for the area under taxing jurisdiction.
19 § 3. Increase in taxes.
20 From and immediately after the effective date of this
21 article, any changes in State taxes enacted for the purposes of
22 increasing revenues collected pursuant thereto whether by
23 increased rates or changes in methods of computation or new
24 statutory laws, must be imposed by an act of Assembly passed by
25 not less than a majority of all the members elected to the
26 Senate and House of Representatives and thereafter submitted to
27 and approved by the people of this Commonwealth by a majority of
28 the electors voting at the next municipal or general election,
29 or by special election as may be provided by law. However, under
30 this section, no new ad valorem taxes on real property, or sales
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1 or transaction taxes on the sales of real property may be
2 imposed. No law now existing nor hereafter enacted shall
3 authorize the taxation by a county, or a political subdivision
4 located within that county, upon the wages, salaries or other
5 income of persons who are not residents of that county.
6 § 4. Residences of senior citizens.
7 Under the provisions of this section, any principal residence
8 enjoyed by citizens of this Commonwealth over the age of 65
9 years, may not be exposed for sale for delinquent real estate
10 taxes if such citizen reaches the age of 65 years during the
11 year in which the delinquency arose. Nothing contained herein
12 shall be construed to limit any taxing district from assessing a
13 real estate tax in accordance with the other provisions of this
14 article, or filing a tax lien pursuant thereto, against the
15 principal residence owned by such citizen over the age of 65
16 years.
17 § 5. Special local taxes.
18 Cities, counties, towns, townships, or any other taxing
19 district, may, by a majority of the electors voting within such
20 district at a municipal or general election, or by special
21 election as may be provided by law, impose special taxes within
22 such district: Provided, however, That this section shall not
23 authorize the imposition of ad valorem taxes on real property or
24 a transaction tax or sales tax on the sale of real property
25 within such city, county, town, township, or other taxing
26 district.
27 § 6. Construction.
28 If any section, part, clause, or phrase of this article is
29 for any reason held to be invalid or unconstitutional, the
30 remaining sections shall not be affected but will remain in full
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1 force and effect. If any section or provision of the now
2 existing Constitution of Pennsylvania is inconsistent with the
3 provisions of this article, then, in that event, this article
4 shall supersede.
5 § 7. Referendum.
6 Five years after the passage of this article, the Secretary
7 of the Commonwealth shall place on the ballot at the next
8 general election the question whether or not the people of this
9 Commonwealth desire to continue the provisions of this article.
10 If at such general election, a majority of the electors voting
11 vote not to retain this article, then, in that event, upon the
12 certification of the results of such election by the Secretary
13 of the Commonwealth, the provisions of this article shall
14 immediately become null and void. Otherwise, the provisions of
15 this amendment shall remain in full force and effect.
16 § 8. Effective date.
17 This article shall take effect for the tax year beginning on
18 July 1 next following the passage of this article, except
19 sections 3 and 4 which shall become effective immediately upon
20 passage.
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