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Pennsylvania House of Representatives
12/02/2024 02:19 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=41256
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: August 8, 2023 01:10 PM
From: Representative Jeanne McNeill
To: All House members
Subject: Clarifying Tax Exemptions for Nonprofits
 
The Pennsylvania Constitution states that nonprofit organizations are only exempt from property taxes for the portion of property that is actually and regularly used for the operation of the nonprofit. However, concerns have been raised about the use of property by nonprofits for commercial purposes, which goes against the rules laid out by our Constitution.
 
To bring clarity to this issue and assist local governments with the collection of property taxes, I am introducing a two-bill package which would ensure that the property tax exemption for nonprofits is functioning as intended by only exempting land actually used for charitable purposes. As just one example, these changes would clarify that land being used to operate a fast-food restaurant on a college campus is subject to property taxes. By reiterating language directly from the state Constitution, we can solve any confusion about what is or is not taxable and help prevent the average taxpaying family from having to cover for organizations that are not paying their fair share.
 
Making our laws about taxation and tax-exempt status straightforward and unambiguous is a win for everyone. Please stand with our local governments and taxpayers by co-sponsoring both pieces of legislation.



Document #1

Introduced as HB1640

Description: The first bill would amend The General County Assessment Law by inserting language directly from the Constitution regarding the tax-exempt status of nonprofit institutions.
 

Document #2

Introduced as HB1639

Description: The second bill would amend Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes by inserting language directly from the Constitution regarding the tax-exempt status of nonprofit institutions.