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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY FONTANA, FERLO, SCHWANK AND WASHINGTON, OCTOBER 3, 2011 |
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| REFERRED TO FINANCE, OCTOBER 3, 2011 |
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| AN ACT |
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1 | Amending the act of November 26, 1997 (P.L.508, No.55), entitled |
2 | "An act providing for the tax exemption of institutions of |
3 | purely public charity; exempting real property owned by |
4 | State-related universities or Federal Government |
5 | instrumentalities from taxation; providing for unfair |
6 | competition; imposing penalties; and making repeals," further |
7 | providing for legislative findings; and providing for the |
8 | definition of "governing body," for other contributions and |
9 | for partial property tax exemption. |
10 | The General Assembly of the Commonwealth of Pennsylvania |
11 | hereby enacts as follows: |
12 | Section 1. Section 2(a) of the act of November 26, 1997 |
13 | (P.L.508, No.55), known as the Institutions of Purely Public |
14 | Charity Act, is amended by adding a paragraph to read: |
15 | Section 2. Legislative intent. |
16 | (a) Findings.--The General Assembly finds and declares as |
17 | follows: |
18 | * * * |
19 | (8) It is necessary and proper for local governments to |
20 | have the option to ensure the continued viability of certain |
21 | essential services it provides or causes to be provided by |
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1 | requiring a contribution from owners of tax-exempt properties |
2 | toward the cost of the services. |
3 | * * * |
4 | Section 2. Section 3 of the act is amended by adding a |
5 | definition to read: |
6 | Section 3. Definitions. |
7 | The following words and phrases when used in this act shall |
8 | have the meanings given to them in this section unless the |
9 | context clearly indicates otherwise: |
10 | * * * |
11 | "Governing body." Any city council, borough council, |
12 | incorporated town council, board of county commissioners or |
13 | their home rule successor in function, board of township |
14 | commissioners, board of township supervisors, governing council |
15 | of a home rule municipality or optional plan municipality or |
16 | governing council of a similar general purpose unit of |
17 | government which may be created by statute after the effective |
18 | date of this definition. |
19 | * * * |
20 | Section 3. The act is amended by adding a section to read: |
21 | Section 7.1. Tax on real estate. |
22 | (a) Authorization.--Notwithstanding any other provision of |
23 | law, the governing body of a municipality may, through |
24 | ordinance, impose the real estate tax authorized under |
25 | subsection (b) on real property owned by an institution of |
26 | purely public charity within the municipality. |
27 | (b) Real estate tax.--The governing body may impose a real |
28 | estate tax on real property located within the municipality and |
29 | owned by an institution of purely public charity. The following |
30 | shall apply: |
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1 | (1) The tax shall be imposed on 100% of the assessed |
2 | value of the land owned by the institution of purely public |
3 | charity and shall not be imposed on the assessed value of any |
4 | structure that sits upon the land. |
5 | (2) The tax shall not be levied on a per parcel basis |
6 | but shall be levied against the aggregate assessed value of |
7 | the real property owned by the institution of purely public |
8 | charity within the municipality. |
9 | (3) The ordinance authorizing the real estate tax shall |
10 | exempt the first $200,000 of aggregate assessed value of the |
11 | real property owned by the institution of purely public |
12 | charity from taxation. |
13 | (c) Enactment of ordinance or resolution.-- |
14 | (1) Prior to adopting an ordinance imposing a real |
15 | estate tax under this section, the governing body shall adopt |
16 | a proposed ordinance which shall include all of the following |
17 | information: |
18 | (i) The content of the ordinance that will be |
19 | enacted, including the effective date. |
20 | (ii) A statement that the proposed ordinance is |
21 | being adopted pursuant to and subject to the requirements |
22 | of this section. |
23 | (2) The governing body shall make the proposed ordinance |
24 | available for public inspection at least 20 days prior to its |
25 | adoption and shall hold at least one public hearing on the |
26 | proposed ordinance prior to its adoption. |
27 | (3) The governing body must give public notice of its |
28 | intent to adopt the proposed ordinance. Publication of the |
29 | notice shall be made by advertisement once a week for three |
30 | weeks in a newspaper of general circulation within the |
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1 | municipality if there is a newspaper of general circulation |
2 | and, if there is not, the publication shall be made in a |
3 | newspaper of general circulation within the county in which |
4 | the advertising municipality is located. |
5 | (d) Prohibition.--Nothing in this section shall be construed |
6 | to permit a governing body to impose a real estate tax on any of |
7 | the following: |
8 | (1) Property owned by the Commonwealth. |
9 | (2) Property owned by a political subdivision of the |
10 | Commonwealth. |
11 | (3) Property owned by the Commonwealth and local |
12 | authorities. |
13 | (4) Property owned by police, fire, including volunteer |
14 | fire and relief, public works or emergency services. |
15 | (5) Property owned by the Federal Government. |
16 | (e) Uniformity.--A real estate tax imposed under this |
17 | section shall apply to all institutions of purely public charity |
18 | owning tax-exempt property within the municipality. |
19 | Section 4. This act shall take effect in 60 days. |
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