PRINTER'S NO. 1815
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1333
Session of
2015
INTRODUCED BY THOMAS, V. BROWN, KINSEY, GROVE AND COHEN,
JUNE 16, 2015
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 16, 2015
AN ACT
Amending the act of December 1, 1977 (P.L.237, No.76), entitled,
as amended, "An act authorizing local taxing authorities to
provide for tax exemption for certain deteriorated
industrial, commercial and other business property and for
new construction in deteriorated areas of economically
depressed communities; providing for an exemption schedule
and establishing standards and qualifications," further
providing for definitions; establishing the School
Revitalization Fund; and further providing for exemption
schedule.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3 of the act of December 1, 1977
(P.L.237, No.76), known as the Local Economic Revitalization Tax
Assistance Act, is amended by adding a definition to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
"Public school." A school in a district, intermediate unit
or an area vocational-technical school, which is located in a
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city of the first class as provided for under the act of March
10, 1949 (P.L.30, No.14), known as the "Public School Code of
1949."
Section 2. The act is amended by adding a section to read:
Section 3.1. School Revitalization Fund.
(a) The School Revitalization Fund is established as a
special fund in the State Treasury. The fund may not lapse.
(b) As calculated by the Department of Revenue, the amount
collected from the decrease to the exemption provided for under
this act for a new construction or from improvements shall be
deposited in the School Revitalization Fund.
(c) The money in the fund shall be distributed
proportionately to each public school in a city of the first
class in this Commonwealth each year beginning after the first
year after the effective date of this section.
Section 3. Section 5 of the act, amended July 13, 1988
(P.L.518, No.90), is amended to read:
Section 5. Exemption schedule.
(a) A local taxing authority granting a tax exemption
pursuant to the provisions of this act may provide for tax
exemption on the assessment of up to 45% of the value
attributable to the actual cost of new construction or
improvements or up to any maximum cost uniformly established by
the municipal governing body. Such maximum cost shall uniformly
apply to all eligible deteriorated property within the local
taxing authority jurisdiction and not exceed 45% of the value of
the actual cost of the new construction or improvements.
(b) Whether or not the assessment eligible for exemption is
based upon actual cost or a maximum cost, the actual amount of
taxes exempted shall be in accordance with the schedule of taxes
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exempted established by a local taxing authority subject to the
following limitations:
(1) The length of the schedule of taxes exempted shall
not exceed ten years.
(2) The schedule of taxes exempted shall stipulate the
portion of new construction or improvements to be exempted
each year.
(3) The exemption from taxes shall be limited to 45% of
the additional assessment valuation attributable to the
actual costs of new construction or improvements to
deteriorated property or not in excess of the maximum cost
per unit established by a municipal governing body.
(c) The exemption from taxes authorized by this act shall be
upon the property exempted and shall not terminate upon the sale
or exchange of the property.
(d) As calculated by the Department of Revenue, the amount
collected from the decrease to the exemption provided for under
this section from a new construction or from improvements shall
be deposited into the School Revitalization Fund in accordance
with section 3.1.
Section 4. This act shall apply to applications for tax
exemptions submitted after the effective date of this act.
Section 5. This act shall take effect in 60 days.
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