THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY TOMLINSON AND McILHINNEY, JANUARY 28, 2011

REFERRED TO FINANCE, JANUARY 28, 2011  

A JOINT RESOLUTION

Proposing an amendment to the Constitution of the Commonwealth

of Pennsylvania, further providing for taxation exemptions

and special provisions.

The General Assembly of the Commonwealth of Pennsylvania

hereby resolves as follows:

Section 1.  The following amendment to the Constitution of

Pennsylvania is proposed in accordance with Article XI:

That section 2(b) of Article VIII be amended to read:

§ 2.  Exemptions and special provisions.

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(b)  The General Assembly may, by law:

(i)  Establish standards and qualifications for private

forest reserves, agricultural reserves, and land actively

devoted to agricultural use, and make special provision for the

taxation thereof;

(ii)  Establish as a class or classes of subjects of taxation

the property or privileges of persons who, because of age,

disability, infirmity or poverty are determined to be in need of

tax exemption or of special tax provisions, and for any such

class or classes, uniform standards and qualifications. The

Commonwealth, or any other taxing authority, may adopt or employ

such class or classes and standards and qualifications, and

except as herein provided may impose taxes, grant exemptions, or

make special tax provisions in accordance therewith. No

exemption or special provision shall be made under this clause

with respect to taxes upon the sale or use of personal property,

and no exemption from any tax upon real property shall be

granted by the General Assembly under this clause unless the

General Assembly shall provide for the reimbursement of local

taxing authorities by or through the Commonwealth for revenue

losses occasioned by such exemption;

(iii)  Establish standards and qualifications by which local

taxing authorities may make uniform special tax provisions

applicable to a taxpayer for a limited period of time to

encourage improvement of deteriorating property or areas by an

individual, association or corporation, or to encourage

industrial development by a non-profit corporation; and

(iv)  Make special tax provisions on any increase in value of

real estate resulting from residential construction. Such

special tax provisions shall be applicable for a period not to

exceed two years.

(v)  Establish standards and qualifications by which local

taxing authorities in counties of the first and second class may

make uniform special real property tax provisions applicable to

taxpayers who are longtime owner-occupants as shall be defined

by the General Assembly of residences in areas where real

property values have risen markedly as a consequence of the

refurbishing or renovating of other deteriorating residences or

the construction of new residences.

(vi)  Authorize local taxing authorities to exclude from

taxation an amount based on the assessed value of homestead

property. The exclusions authorized by this clause shall not

exceed one-half of the median assessed value of all homestead

property within a local taxing jurisdiction. A local taxing

authority may not increase the millage rate of its tax on real

property to pay for these exclusions.

(vii)  Establish standards and qualifications by which local

taxing authorities may make real property tax assessments based

upon an owner's cost of acquisition of the property. This clause

shall not include transfers of principal residence or farmland

between spouses or between parents and children.

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Section 2.  (a)  Upon the first passage by the General

Assembly of this proposed constitutional amendment, the

Secretary of the Commonwealth shall proceed immediately to

comply with the advertising requirements of section 1 of Article

XI of the Constitution of Pennsylvania and shall transmit the

required advertisements to two newspapers in every county in

which such newspapers are published in sufficient time after

passage of this proposed constitutional amendment.

(b)  Upon the second passage by the General Assembly of this

proposed constitutional amendment, the Secretary of the

Commonwealth shall proceed immediately to comply with the

advertising requirements of section 1 of Article XI of the

Constitution of Pennsylvania and shall transmit the required

advertisements to two newspapers in every county in which such

newspapers are published in sufficient time after passage of

this proposed constitutional amendment. The Secretary of the

Commonwealth shall submit this proposed constitutional amendment

to the qualified electors of this Commonwealth at the first

primary, general or municipal election which meets the

requirements of and is in conformance with section 1 of Article

XI of the Constitution of Pennsylvania and which occurs at least

three months after the proposed constitutional amendment is

passed by the General Assembly.