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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | January 12, 2023 11:50 AM |
|---|---|
| From: | Representative P. Michael Sturla |
| To: | All House members |
| Subject: | Optional Sales Tax for Counties |
| By definition, tax-exempt institutions and the properties they occupy are assets to Pennsylvanians. However, they also pose a “burden” from a tax-generating standpoint for local governments who rely on property taxes to pay for vital services. To help counties and municipalities with many tax-exempt properties, I soon will be introducing legislation that would enable counties to enact a 1% sales tax via voter referendum or ordinance by a board of county commissioners. Revenue generated by this sales tax shall be allocated to counties and municipalities within the adopted county based on the assessed value of tax-exempt properties if they were taxable in each municipality located in the county. If revenue generated exceeds or does not cover the assessed value of tax-exempt properties for both the county and municipality, then the money shall be distributed proportionally on a pro-rated basis based on millage rate of the county and municipality. Counties and municipalities could use this revenue to pay pension obligations and maintain core services, such as police, fire, public works, parks, libraries and administrative services, as well as lower overall property tax burdens. Please join me in co-sponsoring this legislation that provides a financial tool to help our communities. |
Introduced as HB678