PRIOR PASSAGE - NONE PRINTER'S NO. 1566
No. 1165 Session of 2007
INTRODUCED BY O'PAKE, COSTA, STOUT, BOSCOLA, WASHINGTON, KASUNIC, C. WILLIAMS, LAVALLE AND KITCHEN, NOVEMBER 19, 2007
REFERRED TO FINANCE, NOVEMBER 19, 2007
A JOINT RESOLUTION 1 Proposing integrated amendments to the Constitution of the 2 Commonwealth of Pennsylvania, further providing for 3 uniformity of taxation and for tax exemptions and special tax 4 provisions. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby resolves as follows: 7 Section 1. The General Assembly finds and declares as 8 follows: 9 (1) The system of funding public education in this 10 Commonwealth is broken, relying too heavily on the real 11 property tax, which does not accurately reflect an 12 individual's ability to pay. 13 (2) Many senior citizens and others living on fixed to 14 moderate incomes are being taxed out of their homes, while 15 many young families just starting out are prevented from 16 purchasing a first home and attaining the American dream of 17 homeownership because of the additional financial burden of 18 real property taxes.
1 (3) Of all the real property taxes imposed by political
2 subdivisions, the homeowner school property tax represents
3 the greatest burden and an extreme financial hardship for too
4 many of our citizens.
5 (4) The Constitution currently prohibits the General
6 Assembly from eliminating property taxes on homestead
7 property only and from imposing a graduated personal income
8 tax.
9 (5) This constitutional amendment is intended to seek
10 voter approval to eliminate the ability of school districts
11 to impose real estate taxes on homestead property and to
12 replace that revenue with funds derived from other sources.
13 These sources include the imposition of a graduated income
14 tax to be used solely to fund homestead property tax
15 elimination.
16 (6) The Commonwealth is in the midst of a property tax
17 crisis that needs to be addressed. The citizens of this
18 Commonwealth, especially the children, deserve quality
19 schools that provide quality educations. However, these needs
20 must be funded through an equitable system of taxation which
21 does not rely on the taxing of homestead property.
22 Section 2. The following integrated amendments to the
23 Constitution of Pennsylvania are proposed in accordance with
24 Article XI:
25 (1) That section 1 of Article VIII be amended to read:
26 § 1. Uniformity of taxation.
27 [All] (a) Except as provided in subsection (b), all taxes
28 shall be uniform, upon the same class of subjects, within the
29 territorial limits of the authority levying the tax, and shall
30 be levied and collected under general laws.
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1 (b) Any school district levying a tax on real property shall 2 be prohibited from levying the tax on homestead property for 3 taxable years beginning after the last day of the fiscal year in 4 which this subsection is ratified. 5 (2) That section 2(b) of Article VIII be amended to read: 6 § 2. Exemptions and special provisions. 7 * * * 8 (b) The General Assembly may, by law: 9 (i) Establish standards and qualifications for private 10 forest reserves, agricultural reserves, and land actively 11 devoted to agricultural use, and make special provision for the 12 taxation thereof; 13 (ii) Establish as a class or classes of subjects of taxation 14 the property or privileges of persons who, because of age, 15 disability, infirmity or poverty are determined to be in need of 16 tax exemption or of special tax provisions, and for any such 17 class or classes, uniform standards and qualifications. The 18 Commonwealth, or any other taxing authority, may adopt or employ 19 such class or classes and standards and qualifications, and 20 except as herein provided may impose taxes, grant exemptions, or 21 make special tax provisions in accordance therewith. No 22 exemption or special provision shall be made under this clause 23 with respect to taxes upon the sale or use of personal property, 24 and no exemption from any tax upon real property shall be 25 granted by the General Assembly under this clause unless the 26 General Assembly shall provide for the reimbursement of local 27 taxing authorities by or through the Commonwealth for revenue 28 losses occasioned by such exemption; 29 (iii) Establish standards and qualifications by which local 30 taxing authorities may make uniform special tax provisions 20070S1165B1566 - 3 -
1 applicable to a taxpayer for a limited period of time to 2 encourage improvement of deteriorating property or areas by an 3 individual, association or corporation, or to encourage 4 industrial development by a non-profit corporation; and 5 (iv) Make special tax provisions on any increase in value of 6 real estate resulting from residential construction. Such 7 special tax provisions shall be applicable for a period not to 8 exceed two years. 9 (v) Establish standards and qualifications by which local 10 taxing authorities in counties of the first and second class may 11 make uniform special real property tax provisions applicable to 12 taxpayers who are longtime owner-occupants as shall be defined 13 by the General Assembly of residences in areas where real 14 property values have risen markedly as a consequence of the 15 refurbishing or renovating of other deteriorating residences or 16 the construction of new residences. 17 (vi) Authorize local taxing authorities to exclude from 18 taxation an amount based on the assessed value of homestead 19 property. The exclusions authorized by this clause shall not 20 exceed one-half of the median assessed value of all homestead 21 property within a local taxing jurisdiction. A local taxing 22 authority may not increase the millage rate of its tax on real 23 property to pay for these exclusions. 24 (vii) For purposes of funding the elimination of school 25 district real estate taxes on homestead property, establish 26 nonuniform rates of taxation for any tax levied on personal 27 income, increasing in proportion to the level of personal 28 income. 29 * * * 30 Section 3. (a) Upon the first passage by the General 20070S1165B1566 - 4 -
1 Assembly of these proposed constitutional amendments, the 2 Secretary of the Commonwealth shall proceed immediately to 3 comply with the advertising requirements of section 1 of Article 4 XI of the Constitution of Pennsylvania and shall transmit the 5 required advertisements to two newspapers in every county in 6 which such newspapers are published in sufficient time after 7 passage of these proposed constitutional amendments. 8 (b) Upon the second passage by the General Assembly of these 9 proposed constitutional amendments, the Secretary of the 10 Commonwealth shall proceed immediately to comply with the 11 advertising requirements of section 1 of Article XI of the 12 Constitution of Pennsylvania and shall transmit the required 13 advertisements to two newspapers in every county in which such 14 newspapers are published in sufficient time after passage of 15 these proposed constitutional amendments. The Secretary of the 16 Commonwealth shall submit the proposed constitutional amendments 17 under section 1 to the qualified electors of this Commonwealth 18 as a single ballot question at the first primary, general or 19 municipal election which meets the requirements of and is in 20 conformance with section 1 of Article XI of the Constitution of 21 Pennsylvania and which occurs at least three months after the 22 proposed constitutional amendments are passed by the General 23 Assembly. I24L83VDL/20070S1165B1566 - 5 -