AN ACT

 

1Amending the act of January 19, 1967 (1968 P.L.992, No.442),
2entitled, as amended, "An act authorizing the Commonwealth of
3Pennsylvania and the local government units thereof to
4preserve, acquire or hold land for open space uses," further
5providing for local taxing options.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 7.1 of the act of January 19, 1967 (1968
9P.L.992, No.442), entitled "An act authorizing the Commonwealth
10of Pennsylvania and the local government units thereof to
11preserve, acquire or hold land for open space uses," amended
12February 2, 2006 (P.L.15, No.4) and November 29, 2006 (P.L.1418,
13No.154), is amended to read:

14Section 7.1. Local Taxing Options.--(a) A local government
15unit, excluding counties and county authorities, may by
16ordinance impose, in addition to the statutory rate limits on
17real estate taxes set forth in the municipal code of that local
18government unit, [a] an open space tax on real property not

1exceeding the millage authorized by referendum under [this
2subsection] subsection (a.3). In the alternative, a local
3government unit, excluding counties and county authorities, may
4by ordinance impose, in addition to the earned income tax rate
5limit set forth in the act of December 31, 1965 (P.L.1257,
6No.511), known as "The Local Tax Enabling Act," [a] an open 
7space tax on the earned income of the residents of that local
8government unit not exceeding the rate authorized by referendum
9under [this subsection] subsection (a.3). Revenue from the levy
10[shall be used] may only be used for the following:

11(1) to retire the indebtedness incurred in purchasing
12interests in real property or in making additional acquisitions
13of real property for the purpose of securing an open space
14benefit or benefits under the provisions of this act or the act
15of June 30, 1981 (P.L.128, No.43), known as the ["Agricultural
16Area Security Law." Revenue from the levy may also be used]
17"Agricultural Area Security Law";

18(2) for transactional fees that are incidental to
19acquisitions made in accordance with this act, including, but
20not limited to, costs of appraisals, legal services, title
21searches, document preparation, title insurance, closing fees
22and survey costs[.];

23(3) for expenses necessary to prepare the resource,
24recreation or land use plan required under section 3; or

25(4) (i) annually, up to 25% of any accumulated balance of
26the fund from the levy authorized by referendum, to develop,
27improve, design, engineer and maintain property acquired
28pursuant to this act for an open space benefit or benefits; or

29(ii) alternatively, for purposes of allocation, the local
30government unit may create a maintenance fund into which the

1local government unit may deposit in an amount up to 25% of the
2annual revenue from the levy authorized by referendum, to
3develop, improve, design, engineer and maintain property
4acquired pursuant to this act for an open space benefit or
5benefits.

6(a.1) In no event, however, shall any revenue in a
7particular year be used to develop, improve, design, engineer
8and maintain the property acquired unless the annual debt
9service under subsection (a)(1) or acquisition fees under
10subsection (a)(2) will be satisfied. The acquisition fees shall
11be paid in their entirety at the time of acquisition.

12(a.2) Nothing in subsection (a)(4) shall prevent a local
13government unit from using funds set aside for development,
14improvement, design, engineering and maintenance of real
15property for acquisition of real property to secure an open
16space benefit or benefits pursuant to subsection (a)(1).

17(a.3) The local taxing option for an open space tax
18authorized by [this] subsection (a) shall not be exercised
19unless the governing body of the local government unit shall by
20ordinance first provide for a referendum on the question of the
21imposition at a specific rate of the additional tax to be
22imposed and a majority of those voting on the referendum
23question vote in favor of the imposition of the tax. The 
24additional tax shall not be repealed any sooner than five years 
25after the imposition of the tax or when any indebtedness 
26incurred for payment of the property or properties acquired has 
27been repaid, whichever is later. The ordinance of the governing
28board of the local government unit providing for a referendum on
29the question shall be filed with the county board of elections.
30The referendum shall be governed by the provisions of the act of

1June 3, 1937 (P.L.1333, No.320), known as the "Pennsylvania
2Election Code." The election official shall cause the question
3to be submitted to the electors of the local government unit at
4the next primary, general or municipal election occurring not
5less than the thirteenth Tuesday following the filing of the
6ordinance with the county board of elections. At such election,
7the question shall be submitted to the voters in the same manner
8as other questions are submitted under the provisions of the
9"Pennsylvania Election Code." The question to be placed upon the
10ballot shall be framed in the following form:

11Do you favor the imposition of a (describe tax in millage
12or earned income tax rate) by (local government unit) to
13be used to (purpose)?

14(a.4) In local government units whose electors voted in a
15referendum pursuant to subsection (a.3) to impose the open space
16tax, whether before or after the effective date of this
17subsection, the method of repeal of the open space tax shall be
18by referendum, and the procedures for the filing of the
19ordinance and the conduct of the referendum shall be as set
20forth in subsection (a.3), except the question to be placed upon
21the ballot shall be framed in the following form:

22Do you favor the continued imposition of the (describe
23tax in millage or earned income tax rate) by (local
24government unit) to be used to (purpose)?

25If the referendum question passes, then the open space tax shall 
26continue to be imposed at the rate described in the question. If 
27the referendum question fails, then the increase in the rate 
28limit of the real estate or the earned income tax provided for 
29by subsection (a.3) shall be repealed effective in the fiscal 
30year following the referendum. Regardless of whether the
 

1referendum question passes or fails, a referendum on either the 
2reimposition of the open space tax pursuant to subsection (a.3) 
3or the continued imposition of the open space tax pursuant to 
4this subsection shall not be held any sooner than five years 
5after the approval or disapproval of the referendum question.

6(b) (1) Any of the following categories of real property
7may be exempted from further millage increases:

8(i) Real property in which the open space property interests
9have been acquired by a local government unit in accordance with
10this act.

11(ii) Real property that is subject to an easement acquired
12in accordance with the act of June 30, 1981 (P.L.128, No.43),
13known as the "Agricultural Area Security Law."

14(iii) Real property from which TDRs have been transferred
15and retired by a local government unit without their development
16potential having occurred on other lands.

17(2) The exemption from further millage increases authorized
18by clause (1) shall become effective only if the governing body
19of each taxing district that imposes a tax on the real property
20approves the exemption either by ordinance in the case of a
21county or municipal corporation or by resolution in the case of
22a school district.

23(3) The exemption from further millage increases for real
24property as provided for in this subsection shall be authorized
25only for real property qualifying for such exemption under the
26provisions of section 2(b)(1) of Article VIII of the
27Constitution of Pennsylvania.

28(4) If the governing body of each taxing district so
29resolves, the millage freeze authorized herein shall apply to
30all eligible real property, whether the real property met the

1criteria of this subsection prior to or subsequent to the date
2of the ordinances and resolution imposing the millage freeze.
3For prior acquisitions, the date on which the millage rate shall
4be frozen is the date that the last of the required ordinances
5or resolution becomes effective. For subsequent acquisitions,
6the date on which the millage rate shall be frozen is the date
7the local government unit completes the acquisition. The
8governing body of each taxing district shall give prompt notice
9to the appropriate tax collection agent of the exact amount of
10the millage, the date it was frozen and each parcel to which the
11freeze applies.

12(5) The exemptions granted under this act shall not be
13considered by the State Tax Equalization Board in deriving the
14market value of school district real property so as to reduce
15the subsidy to that school district or to increase the subsidy
16to any other school district.

17Section 2. This act shall take effect immediately.