PRINTER'S NO. 2672
No. 459 Session of 2007
INTRODUCED BY CURRY, ARGALL, BRENNAN, BUXTON, CALTAGIRONE,
CAPPELLI, CAUSER, COHEN, DePASQUALE, FAIRCHILD, FLECK,
FRANKEL, FREEMAN, HALUSKA, HORNAMAN, JAMES, JOSEPHS, KOTIK,
KULA, McILHATTAN, R. MILLER, NICKOL, PETRONE, RAPP, READSHAW,
SIPTROTH, K. SMITH, SONNEY, STURLA, WALKO, WHEATLEY,
WOJNAROSKI AND YOUNGBLOOD, OCTOBER 18, 2007
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 18, 2007
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to study
2 the fiscal impact of tax-exempt properties on the finances of
3 municipalities and school districts; to review the policies
4 of other states in addressing the burden of limited tax bases
5 as a result of tax-exempt properties; and to make
6 recommendations on ways to assist tax authorities with a high
7 concentration of tax-exempt properties.
8 WHEREAS, Property taxes are a major source of revenue for
9 school districts and municipalities across this Commonwealth;
10 and
11 WHEREAS, Certain municipalities within this Commonwealth
12 contain a high concentration of property exempt from local
13 property taxes under the law; and
14 WHEREAS, Government buildings, public schools and
15 universities, hospitals, museums, prisons and nonprofit
16 organizations are examples of tax-exempt properties not
17 obligated to pay local property taxes; and
18 WHEREAS, While they are not able to generate tax revenue from
1 the tax-exempt properties, host municipalities are still
2 responsible for providing a variety of municipal services,
3 including fire and police coverage; and
4 WHEREAS, Residents of municipalities with a high
5 concentration of tax-exempt properties are burdened with higher
6 property taxes in order to compensate for the limited local tax
7 base and the inability to recoup costs from local tax-exempt
8 properties; and
9 WHEREAS, Local governments and school districts often
10 struggle to find additional revenue due to the property tax
11 exemption, but are limited in how they may generate additional
12 revenues; and
13 WHEREAS, Many states, including this Commonwealth, have
14 explored "Payment in Lieu of Tax" programs, also referred to as
15 PILOT programs, to raise revenues from tax-exempt organizations,
16 only to have mixed results; and
17 WHEREAS, In 2003, several cities requested that nonprofits
18 make "fair share" payments and that colleges pay a fee per
19 student in order to pay the cost of government services, but
20 unfortunately these payments were still insufficient; therefore
21 be it
22 RESOLVED, That the Legislative Budget and Finance Committee
23 conduct a study to determine the number of tax-exempt properties
24 within this Commonwealth; and be it further
25 RESOLVED, That the Legislative Budget and Finance Committee
26 identify localities with a high percentage of tax-exempt
27 properties and the impact that such a high concentration of tax-
28 exempt properties is having on the local tax base; and be it
29 further
30 RESOLVED, That the Legislative Budget and Finance Committee
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1 analyze the manner in which other states have tried to alleviate
2 the problems associated with tax-exempt properties; and be it
3 further
4 RESOLVED, That the Legislative Budget and Finance Committee
5 review the options available to this Commonwealth, both under
6 the law and through new legislative proposals that would address
7 the burden associated with tax-exempt properties; and be if
8 further
9 RESOLVED, That the Legislative Budget and Finance Committee
10 issue a report containing its findings and recommendations to
11 the House of Representatives no later than one year from the
12 adoption of this resolution.
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