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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | December 12, 2012 04:53 PM |
|---|---|
| From: | Senator Jim Ferlo |
| To: | All Senate members |
| Subject: | Recission of Tax Exempt Status for Outsourcing Jobs |
| In the near future I plan to reintroduce Senate Bill 585 to amend Act 55 of 1997 (Institutions of Purely Public Charities Act) which strips a non-profit of its tax exempt status if the company is found to have employed contractors overseas at the expense of domestic jobs. The Purely Public Charities Act was passed to clearly define eligibility standards for institutions to become tax exempt. The status was bestowed upon organizations because they contributed to the improvement of communities and relieved government from providing certain services: health care, economic development, education, etc. However, as institutions have grown, their tax-exempt status has been used improperly to gain a competitive advantage in the market place against for-profit companies. Equally important is the need for local, county, and state governments to collect badly needed taxes from these entities that have misused the benevolent purpose of the tax exemption charter with the Commonwealth. The legislation will not affect how for-profit companies do business and pay taxes. The bill will be directed at non-profits which are outsourcing positions abroad. In the previous session SB 585 was co-sponsored by Senators Fontana, Erickson, Tartaglione, Rafferty, Wozniak, and Brewster. |
Introduced as SB43
Memo Updated: December 12, 2012 04:55 PM