1Amending the act of November 26, 1997 (P.L.508, No.55), entitled 
2"An act providing for the tax exemption of institutions of 
3purely public charity; exempting real property owned by 
4State-related universities or Federal Government 
5instrumentalities from taxation; providing for unfair 
6competition; imposing penalties; and making repeals," further 
7providing for legislative findings; and providing for the 
8definition of "governing body," for other contributions and 
9for partial property tax exemption.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1.  Section 2(a) of the act of November 26, 1997 
13(P.L.508, No.55), known as the Institutions of Purely Public 
14Charity Act, is amended by adding a paragraph to read:

15Section 2.  Legislative intent.

16(a)  Findings.--The General Assembly finds and declares as

18* * *

19(8)  It is necessary and proper for local governments to
20have the option to ensure the continued viability of certain
21essential services it provides or causes to be provided by
22requiring a contribution from owners of tax-exempt properties

1toward the cost of the services.

2* * *

3Section 2.  Section 3 of the act is amended by adding a
4definition to read:

5Section 3.  Definitions.

6The following words and phrases when used in this act shall
7have the meanings given to them in this section unless the
8context clearly indicates otherwise:

9* * *

10"Governing body."  Any city council, borough council,
11incorporated town council, board of county commissioners or
12their home rule successor in function, board of township
13commissioners, board of township supervisors, governing council
14of a home rule municipality or optional plan municipality or
15governing council of a similar general purpose unit of
16government which may be created by statute after the effective
17date of this definition.

18* * *

19Section 3.  The act is amended by adding a section to read:

20Section 7.1.  Tax on real estate.

21(a)  Authorization.--Notwithstanding any other provision of
22law, the governing body of a municipality may, through
23ordinance, impose the real estate tax authorized under
24subsection (b) on real property owned by an institution of
25purely public charity within the municipality.

26(b)  Real estate tax.--The governing body may impose a real
27estate tax on real property located within the municipality and
28owned by an institution of purely public charity. The following
29shall apply:

30(1)  The tax shall be imposed on 100% of the assessed

1value of the land owned by the institution of purely public
2charity and shall not be imposed on the assessed value of any
3structure that sits upon the land.

4(2)  The tax shall not be levied on a per parcel basis
5but shall be levied against the aggregate assessed value of
6the real property owned by the institution of purely public
7charity within the municipality.

8(3)  The ordinance authorizing the real estate tax shall
9exempt the first $200,000 of aggregate assessed value of the
10real property owned by the institution of purely public
11charity from taxation.

12(c)  Enactment of ordinance or resolution.--

13(1)  Prior to adopting an ordinance imposing a real
14estate tax under this section, the governing body shall adopt
15a proposed ordinance which shall include all of the following

17(i)  The content of the ordinance that will be
18enacted, including the effective date.

19(ii)  A statement that the proposed ordinance is
20being adopted pursuant to and subject to the requirements
21of this section.

22(2)  The governing body shall make the proposed ordinance
23available for public inspection at least 20 days prior to its
24adoption and shall hold at least one public hearing on the
25proposed ordinance prior to its adoption.

26(3)  The governing body must give public notice of its
27intent to adopt the proposed ordinance. Publication of the
28notice shall be made by advertisement once a week for three
29weeks in a newspaper of general circulation within the
30municipality if there is a newspaper of general circulation

1and, if there is not, the publication shall be made in a
2newspaper of general circulation within the county in which
3the advertising municipality is located.

4(d)  Prohibition.--Nothing in this section shall be construed
5to permit a governing body to impose a real estate tax on any of
6the following:

7(1)  Property owned by the Commonwealth.

8(2)  Property owned by a political subdivision of the

10(3)  Property owned by the Commonwealth and local

12(4)  Property owned by police, fire, including volunteer
13fire and relief, public works or emergency services.

14(5)  Property owned by the Federal Government.

15(e)  Uniformity.--A real estate tax imposed under this
16section shall apply to all institutions of purely public charity
17owning tax-exempt property within the municipality.

18Section 4.  This act shall take effect in 60 days.