1Providing for an annual revenue sharing program for
2municipalities relating to tax-exempt real property;
3establishing the Tax-exempt Property Municipal Assistance
4Fund; imposing powers and duties on the Department of
5Community and Economic Development; and making an
6inconsistent repeal.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the Tax-exempt
11Property Municipal Assistance Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Common level ratio." The ratio of assessed value to current
17market value used generally in the county as last determined by
18the State Tax Equalization Board under the act of June 27, 1996
19(P.L.403, No.58), known as the Community and Economic

1Development Enhancement Act.

2"Department." The Department of Community and Economic
3Development of the Commonwealth.

4"Fund." The Tax-exempt Property Municipal Assistance Fund
5established under section 4.

6"Liquor tax." The tax imposed and assessed upon the net
7price of all liquors sold by the Pennsylvania Liquor Control
8Board under the act of June 9, 1936 (Sp.Sess., P.L.13, No.4),
9entitled "An act imposing an emergency State tax on liquor, as
10herein defined, sold by the Pennsylvania Liquor Control Board;
11providing for the collection and payment of such tax; and
12imposing duties upon the Department of Revenue and the
13Pennsylvania Liquor Control Board."

14"Market value." The value of property as calculated by the
15State Tax Equalization Board on an annual basis utilizing the
16common level ratio.

17"Market value of tax-exempt property." The quotient of the
18base year market value of a property and the common level ratio
19as calculated by the State Tax Equalization Board.

20"Municipality." Any of the following:

21(1) A city, borough, incorporated town or township.

22(2) A home rule municipality which is a city, borough,
23incorporated town or township.

24"Qualified tax-exempt property." Real property which is
25exempt from local real property taxes and which is owned by one
26of the following:

27(1) The Federal Government or an instrumentality of the
28Federal Government.

29(2) The Commonwealth or an instrumentality of the
30Commonwealth.

1(3) A political subdivision, except real property owned
2by the municipality in which the property is located.

3(4) An entity which has obtained the exemption from real
4property taxation pursuant to the authority granted to the
5General Assembly under section 2(a)(i), (ii), (iv) or (v) of
6Article VIII of the Constitution of Pennsylvania.

7(5) A local authority as defined in 1 Pa.C.S. § 1991
8(relating to definitions).

9Section 3. Tax-exempt property compilation.

10(a) Compilation.--Each county shall annually compile a list
11identifying the market value of tax-exempt property within the
12county.

13(b) Annual report.--Beginning in calendar year 2014, each
14county assessment office shall submit to the department an
15annual report providing the information required in subsection
16(c) and such additional information as required by the
17department to administer this act. The report required under
18this section shall be filed by June 30.

19(c) Contents.--The report required under subsection (b)
20shall be a compilation of all property located within the county
21which is exempt from real property tax as of January 1 in the
22year the report is required to be filed. The report shall
23contain the following:

24(1) The owner of each tax-exempt property.

25(2) The location of the property, including mailing
26address, name of the municipality where the property is
27located and the uniform parcel identifier.

28(3) The assessed value of the property.

29(4) Payments in lieu of tax or other funding received
30under any Federal or State program based on the tax-exempt

1status of the property. The amounts of such payments shall be
2reported by the municipality to the county assessment office.
3If the municipality fails to timely report this information
4to the county assessment office, the county is not required
5to include the information in the report and the municipality
6shall report the information directly to the department.

7(5) The millage rate for the tax on real property in
8effect in the municipality where the property is located as
9of January 1 of the year in which the report is required to
10be filed.

11(6) The assessed value of all property in each
12municipality in the county.

13(7) The market value of all property in each
14municipality in the county.

15(d) Failure to file reports.--Notwithstanding any other
16provision of this act, a county which fails to provide to the
17department the report required under this section by July 31
18shall cause all municipalities within that county to forfeit the
19right to share in the distribution of funding for the year in
20which the information was required to be reported. Any
21municipality located within a county that has failed to provide
22the department with the required report shall have the right to
23petition the court of common pleas to issue a writ of mandamus
24ordering the county to collect the data and file the report with
25the department.

26Section 4. Fund.

27(a) Establishment.--There is established in the State
28Treasury a special restricted account to be known as the Tax-
29exempt Property Municipal Assistance Fund. The money deposited
30in this fund shall be used exclusively for the purpose of making

1annual revenue distributions pursuant to this act.

2(b) Funds for revenue sharing program.--All revenues
3received by the Commonwealth from imposition of the liquor tax
4shall be transferred to the fund. All funds transferred under
5this subsection shall be distributed as provided in section 6.

6(c) Timing of transfers.--Revenue required to be transferred
7under this section shall be transferred by the State Treasurer
8in five equal installments before the last day of February,
9March, April, May and June of each fiscal year in which a
10transfer is required.

11(d) Appropriation.--Moneys in the fund are appropriated on a
12continuing basis to the department for purposes of making
13distributions pursuant to this act and shall not lapse at the
14end of any fiscal year.

15Section 5. Allocation of fund.

16The money in the fund shall be set aside for annual
17distribution to municipalities under section 6. Money in the
18fund at the end of a fiscal year shall be distributed by the
19department by September 15 next following the end of the fiscal
20year in the manner required under section 6.

21Section 6. Tax-exempt properties assistance.

22(a) Eligibility.--A municipality will be eligible to receive
23distributions under this section if it imposes a tax on real
24property and it is determined by the department that the
25municipality's total market value of tax-exempt property equals
26or exceeds 15% of the total market value of assessed property
27within the municipality.

28(b) Revenue.--The department shall determine annual sharing
29of funds in accordance with section 5 by each eligible
30municipality based upon the following:

1(1) Each municipality's total market value of qualified
2tax-exempt properties shall be divided by the total market
3value of qualified tax-exempt property in all eligible
4municipalities under subsection (a) with the quotient
5expressed as a percentage.

6(2) The percentage under paragraph (1) shall be
7multiplied by the funds available under section 5 to
8determine the amount of funding for each municipality.

9(3) No municipality shall receive more than 10% of the
10funds available under section 5. If it is determined that a
11municipality's allocation would exceed the 10% limit, the
12municipality shall receive 10% of the funds available under
13section 5. In the event that the initial calculation under
14paragraph (1) results in more than one municipality having a
15quotient of 10% or more, the allocation to each municipality
16entitled to a maximum 10% of the fund, under section 5, shall
17be calculated against the total amount of money in the fund
18at the end of the fiscal year. For the remaining
19municipalities, the department shall recalculate the grant
20amounts using the formula in paragraphs (1) and (2), except
21that the recalculation shall exclude:

22(i) the municipality whose allocation would exceed
23the 10% limit; and

24(ii) the amount equivalent to the municipality's 10%
25allocation.

26(4) No municipality shall receive an amount exceeding
27$100 per person based upon the population during the last
28decennial census. If it is determined that a municipality
29would exceed the $100 per person limit, the municipality
30shall receive a $100 per person allocation from the funds

1available under section 5. In the event that the initial
2calculation under paragraph (1) results in more than one
3municipality having an allocation exceeding the $100 limit,
4the allocation to each municipality entitled to the per
5person limit of the fund under section 5 shall be calculated
6against the total amount of money in the fund at the end of
7the fiscal year. For the remaining municipalities, the
8department shall recalculate the grant amounts using the
9formula in paragraphs (1) and (2), except that the
10recalculation shall exclude:

11(i) any municipality whose allocation would exceed
12the $100 per person limit; and

13(ii) the amount equivalent to the municipality's
14$100 per person limit.

15(5) If the calculations as provided under this
16subsection result in $1,000,000 or less remaining in the
17fund, the money shall be retained in the fund for allocation
18in the next fiscal year. If the calculations as provided
19under this subsection result in $1,000,000 or more remaining
20in the fund, the department shall recalculate the allocation
21amounts for the remaining qualified municipalities that have
22not reached any allocation limitation under this subsection.
23The department shall use the formula under this subsection,
24except that the recalculation shall exclude any municipality
25whose allocation would exceed any allocation limitation in
26this subsection as well as the amount equivalent to the
27municipality's allocation limitation under this subsection.
28If the recalculation as provided under this paragraph results
29in any moneys remaining in the fund, the moneys shall be
30retained in the fund for allocation in the next year.

1(6) The amount of any payment under section 3(c)(4)
2shall be deducted from the final payment under this act and
3the money deducted shall be returned to the department and
4deposited into the fund for disbursement in the next fiscal
5year. If a municipality receives a payment from a government
6agency after it receives a disbursement under this act, the
7municipality shall reimburse the fund the amount of the
8payment. In no case shall a municipality receive a
9disbursement under this act and a payment from a government
10agency for the same parcel of tax-exempt property in the same
11fiscal year.

12Section 7. Regulations.

13Within 180 days after the effective date of this section, the
14department shall promulgate regulations necessary to implement
15this act in accordance with the act of June 25, 1982 (P.L.633,
16No.181), known as the Regulatory Review Act. The department
17shall submit any proposed regulations to the Local Government
18Committee of the Senate and the Local Government Committee of
19the House of Representatives for comment.

20Section 8. Repeal.

21Section 2 of the act of June 9, 1936 (Sp.Sess., P.L.13,
22No.4), entitled "An act imposing an emergency State tax on
23liquor, as herein defined, sold by the Pennsylvania Liquor
24Control Board; providing for the collection and payment of such
25tax; and imposing duties upon the Department of Revenue and the
26Pennsylvania Liquor Control Board," is repealed insofar as it
27requires funds to be credited to the General Fund.

28Section 9. Effective date.

29This act shall take effect in 60 days.