PRINTER'S NO. 2977
No. 2189 Session of 2003
INTRODUCED BY ROSS, ARMSTRONG, BALDWIN, BARD, BARRAR, BUNT,
CAPPELLI, CORRIGAN, COY, CRAHALLA, CURRY, FREEMAN, GODSHALL,
HARPER, HENNESSEY, KELLER, LEACH, LEVDANSKY, MUSTIO, O'NEILL,
PETRI, RUBLEY, SCAVELLO, SCHRODER, E. Z. TAYLOR, VANCE,
WALKO, WATSON, WEBER AND YOUNGBLOOD, NOVEMBER 24, 2003
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 24, 2003
AN ACT
1 Amending the act of January 19, 1968 (1967 P.L.992, No.442),
2 entitled, as amended, "An act authorizing the Commonwealth of
3 Pennsylvania and the local government units thereof to
4 preserve, acquire or hold land for open space uses," further
5 providing for local taxing options; and providing for land
6 trusts.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 7.1 of the act of January 19, 1968 (1967
10 P.L.992, No.442), entitled "An act authorizing the Commonwealth
11 of Pennsylvania and the local government units thereof to
12 preserve, acquire or hold land for open space uses," added
13 December 18, 1996 (P.L.994, No.153), is amended to read:
14 Section 7.1. Local Taxing Options.--(a) A local government
15 unit, excluding counties and county authorities, may by
16 ordinance impose, in addition to the statutory rate limits on
17 real estate taxes set forth in the municipal code of that local
18 government unit, a tax on real property not exceeding the
1 millage authorized by referendum under this subsection. In the
2 alternative, a local government unit, excluding counties and
3 county authorities, may by ordinance impose, in addition to the
4 earned income tax rate limit set forth in the act of December
5 31, 1965 (P.L.1257, No.511), known as "The Local Tax Enabling
6 Act," a tax on the earned income of the residents of that local
7 government unit not exceeding the rate authorized by referendum
8 under this subsection. Revenue from the levy shall be used to
9 retire the indebtedness incurred in purchasing interests in real
10 property or in making additional acquisitions of real property
11 for the purpose of securing an open space benefit or benefits
12 under the provisions of this act or the act of June 30, 1981
13 (P.L.128, No.43), known as the "Agricultural Area Security Law."
14 Revenue from the levy may also be used for expenses related to
15 acquisitions made in accordance with this act, including, but
16 not limited to, costs of appraisals, legal services, title
17 searches, document preparation, title insurance, closing fees
18 and survey costs. The local taxing option authorized by this
19 subsection shall not be exercised unless the governing body of
20 the local government unit shall by ordinance first provide for a
21 referendum on the question of the imposition at a specific rate
22 of the additional tax to be imposed and a majority of those
23 voting on the referendum question vote in favor of the
24 imposition of the tax. The ordinance of the governing board of
25 the local government unit providing for a referendum on the
26 question shall be filed with the county board of elections. The
27 referendum shall be governed by the provisions of the act of
28 June 3, 1937 (P.L.1333, No.320), known as the "Pennsylvania
29 Election Code." The election official shall cause the question
30 to be submitted to the electors of the local government unit at
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1 the next primary, general or municipal election occurring not
2 less than the thirteenth Tuesday following the filing of the
3 ordinance with the county board of elections. At such election,
4 the question shall be submitted to the voters in the same manner
5 as other questions are submitted under the provisions of the
6 "Pennsylvania Election Code." The question to be placed upon the
7 ballot shall be framed in the following form:
8 Do you favor the imposition of a (describe tax in millage
9 or rate) by (local government unit) to be used to
10 (purpose)?
11 (b) The board of directors of a school district may by
12 resolution exempt the following real property from further
13 millage increases imposed on real property:
14 (1) those whose open space property interests have been
15 acquired by a local government unit under this act;
16 (2) real property which is subject to an easement acquired
17 under the act of June 30, 1981 (P.L.128, No.43), known as the
18 "Agricultural Area Security Law"; and
19 (3) real property whose TDRs have been transferred and
20 retired by a local government unit without their development
21 potential having occurred on other lands; provided that the
22 exemption from further millage increases for real property as
23 provided for in clause (1), (2) or (3) of this subsection shall
24 be authorized only for real property qualifying for such
25 exemption under the provisions of section 2(b)(1) of Article
26 VIII of the Constitution of Pennsylvania. If the board so
27 resolves, the millage freeze authorized herein shall apply to
28 all eligible real property, whether the real property met the
29 criteria of this subsection prior to or subsequent to the date
30 of the resolution imposing the millage freeze. For prior
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1 acquisitions, the date on which the millage rate shall be frozen
2 is the date of the resolution. For subsequent acquisitions, the
3 date on which the millage rate shall be frozen is the date the
4 local government unit completes the acquisition. The school
5 district shall give prompt notice to the appropriate tax
6 collection agent of the exact amount of the millage, the date it
7 was frozen and each parcel to which the freeze applies. The
8 exemptions granted under this act shall not be considered by the
9 State Tax Equalization Board in deriving the market value of
10 school district real property so as to reduce the subsidy to
11 that school district or to increase the subsidy to any other
12 school district.
13 Section 2. The act is amended by adding a section to read:
14 Section 11.1. Land Trusts.--(a) If the governing body of a
15 local government unit, excluding county authorities, deems it to
16 be for the public benefit of the local government unit, it may
17 appropriate money to a land trust for the acquisition or
18 conservation and preservation of interests in real property for
19 the purpose of achieving open space benefits.
20 (b) A local government unit, excluding county authorities,
21 shall have the power to create a local land trust by
22 incorporating a nonprofit corporation under 15 Pa.C.S. Pt. II
23 Subpt. C Article B (relating to domestic nonprofit corporations
24 generally). Whenever the governing body of a local government
25 unit, excluding county authorities, desires to create a local
26 land trust under this section, it shall adopt an ordinance
27 signifying its intention to do so.
28 (c) Notwithstanding any other provision of this act, and in
29 addition to other powers granted under this act, a local
30 government unit that creates a local land trust shall have the
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1 powers:
2 (1) to make appropriations of money, including revenues
3 raised by a tax imposed under section 7.1, to a local land trust
4 created by the local government unit for the acquisition or
5 conservation and preservation of interests in real property for
6 the purpose of achieving open space benefits within the local
7 government unit; and
8 (2) to transfer open space property interests to a local
9 land trust created by the local government unit.
10 (d) Money appropriated to a land trust or a local land trust
11 under this section may be used for related expenses.
12 (e) As used in this section:
13 (1) "Land trust." A nonprofit organization that is tax
14 exempt under section 501(c)(3) of the Internal Revenue Code of
15 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), is registered
16 with the Pennsylvania Commission on Charitable Organizations,
17 and which has among its primary purposes the acquisition or
18 conservation and preservation of interests in real property for
19 the purpose of achieving open space benefits.
20 (2) "Local government unit." A local government unit as
21 defined in section 2(5), excluding county authorities.
22 (3) "Related expenses." Incidental expenses incurred by
23 land trust in the acquisition or conservation and preservation
24 of interests in real property for the purpose of achieving open
25 space benefits, including, but not limited to, costs of
26 appraisals, legal services, title searches, document
27 preparation, title insurance, closing fees and survey costs.
28 Section 3. This act shall take effect in 60 days.
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