Trial Engrossment of Amendment A03216 to House Bill 0071 P.N. 0047, Regular Session 2021-2022

PRIOR PASSAGE - NONE

A03216

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

Session of

2021

INTRODUCED BY WARNER, DAVANZO, DIAMOND, DUNBAR, ECKER, GAYDOS,

GROVE, HAMM, IRVIN, JAMES, KAUFFMAN, KEEFER, R. MACKENZIE,

O'NEAL, ROTHMAN, ROWE, RYAN, SANKEY, TOPPER, WHEELAND,

M. MACKENZIE, BERNSTINE AND BOROWICZ, JANUARY 11, 2021

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 11, 2021

A JOINT RESOLUTION

Proposing an amendment separate and distinct amendments to the

Constitution of the Commonwealth of Pennsylvania, in taxation

and finance, further providing for uniformity of taxation,

eliminating real property taxation and providing for

graduated personal income taxation as replacement for real

property taxation; and providing for spending limitations on

the Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby resolves as follows:

Section 1. The following amendment to the Constitution of

Pennsylvania is proposed in accordance with Article XI:

That Article VIII be amended by adding a section to read:

Section 1. The following separate and distinct amendments to

the Constitution of Pennsylvania are proposed in accordance with

Article XI:

(1) That Section 1 of Article VIII be amended to read:

§ 1. Uniformity of taxation[.]; elimination of real property

taxation; and graduated personal income taxation as

replacement for real property taxatio n.

[All] (a) Except as provided in subsection (b), all taxes

shall be uniform, upon the same class of subjects, within the

territorial limits of the authority levying the tax, and shall

be levied and collected under general laws.

(b) The Commonwealth and its municipalities and school

districts shall be prohibited from levying and collecting taxes

on real property beginning two years after adoption of this

subsection, and the General Assembly shall enact general laws

providing for graduated personal income taxation, the proceeds

of which shall be distributed as provided by such laws to the

municipalities and school taxes as a replacement for real

property taxation.

(2) That Article VIII be amended by adding a section to

read:

§ 18. Spending limitations.

(a) Total spending by the Commonwealth shall not exceed the

spending limit in any fiscal year. The spending limit for any

fiscal year shall be equal to the spending during the

immediately prior fiscal year, adjusted by the sum of:

(i) The average of the percentage change in the annual

United States Consumer Price Index for All Urban Consumers (CPI-

U), as reported by the United States Department of Labor, Bureau

of Labor Statistics, for each of the immediately preceding three

calendar years.

(ii) The average of the percentage change in the resident

population in this Commonwealth, as reported by the United

States Census Bureau for July 1 of each year, for the

immediately preceding three calendar years.

(b) The percentage of the rate of change calculated under

subsection (a) used in any fiscal year to adjust the spending

limit may be increased for that fiscal year by the affirmative

vote of two-thirds of the members elected to each House of the

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General Assembly. The Commonwealth's spending limit calculated

under subsection (a) may be changed by the procedure outlined in

section 1(a) of Article XI.

appropriations and authorizations from the General Fund and

shall exclude refunds and the spending of Federal funds, gifts

or receipts restricted by laws in effect as of January 1 of the

year when this section is ratified and approved by the qualified

electors of this Commonwealth . This section shall not be

circumvented by transferring spending from the General Fund to

special funds or restricted receipt accounts.

Section 2. (a) Upon the first passage by the General

Assembly of this proposed constitutional amendment, the

Secretary of the Commonwealth shall proceed immediately to

comply with the advertising requirements of section 1 of Article

XI of the Constitution of Pennsylvania and shall transmit the

required advertisements to two newspapers in every county in

which such newspapers are published in sufficient time after

passage of this proposed constitutional amendment.

(b) Upon the second passage by the General Assembly of this

proposed constitutional amendment, the Secretary of the

Commonwealth shall proceed immediately to comply with the

advertising requirements of section 1 of Article XI of the

Constitution of Pennsylvania and shall transmit the required

advertisements to two newspapers in every county in which such

newspapers are published in sufficient time after passage of

this proposed constitutional amendment. The Secretary of the

Commonwealth shall submit this proposed constitutional amendment

to the qualified electors of this Commonwealth at the first

primary, general or municipal election which meets the

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requirements of and is in conformance with section 1 of Article

XI of the Constitution of Pennsylvania and which occurs at least

three months after the proposed constitutional amendment is

passed by the General Assembly.

Section 2. (a) Upon the first passage by the General

Assembly of these proposed constitutional amendments, the

Secretary of the Commonwealth shall proceed immediately to

comply with the advertising requirements of section 1 of Article

XI of the Constitution of Pennsylvania and shall transmit the

required advertisements to two newspapers in every county in

which such newspapers are published in sufficient time after

passage of these proposed constitutional amendments.

(b) Upon the second passage by the General Assembly of these

proposed constitutional amendments, the Secretary of the

Commonwealth shall proceed immediately to comply with the

advertising requirements of section 1 of Article XI of the

Constitution of Pennsylvania and shall transmit the required

advertisements to two newspapers in every county in which such

newspapers are published in sufficient time after passage of

these proposed constitutional amendments. The Secretary of the

Commonwealth shall:

(1) Submit the proposed constitutional amendment under

section 1(1) of this resolution to the qualified electors of

this Commonwealth as a single ballot question at the first

primary, general or municipal election which meets the

requirements of and is in conformance with section 1 of

Article XI of the Constitution of Pennsylvania and which

occurs at least three months after the proposed

constitutional amendments are passed by the General Assembly.

(2) Submit the proposed constitutional amendment under

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section 1(2) of this resolution to the qualified electors of

this Commonwealth as separate ballot questions at the first

primary, general or municipal election which meets the

requirements of and is in conformance with section 1 of

Article XI of the Constitution of Pennsylvania and which

occurs at least three months after the proposed

constitutional amendments are passed by the General Assembly.

Section 3. The addition of section 18(a) of Article VIII of

the Constitution of Pennsylvania shall become effective

beginning with the first fiscal year commencing more than six

months following approval of section 18 of Article VIII by the

electorate.

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