PRINTER'S NO. 335
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
337
Session of
2017
INTRODUCED BY BROWNE, SCHWANK, YUDICHAK, COSTA AND BREWSTER,
FEBRUARY 15, 2017
REFERRED TO FINANCE, FEBRUARY 15, 2017
AN ACT
Amending the act of July 11, 1990 (P.L.465, No.113), entitled
"An act providing for the creation of tax increment
districts; providing for additional powers and duties to be
exercised by redevelopment authorities and by industrial and
commercial development authorities; authorizing the creation
and approval of project plans for tax increment financing;
providing for the establishment of a tax increment base;
allocating the payment of positive tax increments; providing
for the financing of project costs; and providing for the
issuance of tax increment bonds and notes," further providing
for the definitions of "tax increment" and "tax increment
base."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "tax increment" and "tax
increment base" in section 3 of the act of July 11, 1990
(P.L.465, No.113), known as the Tax Increment Financing Act, are
amended to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Tax increment." Generally, the incremental tax revenues,
determined with reference to the tax increment base, resulting
from the increase in property values or from the increase in
commercial activity as a result of a project. More specifically,
the term includes the following:
(1) The incremental tax revenues resulting from an
increase in the total market value of taxable real property
situated in a tax increment district and an increase in the
business use and occupancy of such taxable real property.
This paragraph applies only to ad valorem taxes on real
property and tax imposed by the governing body on the use and
occupancy of real property.
(2) The payment in lieu of taxes assigned to or agreed
to be paid by governmental entities or nonprofit
organizations with property situated or otherwise assignable
to a tax increment district. Whether all or only a portion of
this payment is to be considered part of the tax increment
shall be determined at the time the tax increment district is
created.
(3) The incremental tax revenues resulting from an
increase in total taxable sales and rentals of tangible
personal property and in the rendition of taxable services by
vendors located in a tax increment district. This paragraph
applies only to a sales tax levied by a governing body.
(4) The incremental tax revenues resulting from an
increase in total gross receipts or gross or net profits or
income realized by persons or entities from business
conducted in a tax increment district. This paragraph applies
only to those taxes levied under the authority of the act of
August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to as the
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Sterling Act, the act of December 31, 1965 (P.L.1257,
No.511), known as The Local Tax Enabling Act, and the act of
May 30, 1984 (P.L.345, No.69), known as the First Class City
Business Tax Reform Act.
(5) The incremental tax revenues resulting from an
increase in the total taxable earnings realized by:
(i) unincorporated businesses operating in the tax
increment district; and
(ii) employees working for persons or governmental
entities that are conducting business in the tax
increment district.
This paragraph shall apply to revenues from taxes levied
under the Sterling Act, the act of March 10, 1949 (P.L.30,
No.14) , known as the Public School Code of 1949, and The
Local Tax Enabling Act.
"Tax increment base." The term means one or more of the
following, as appropriate:
(1) The aggregate market value of all taxable real
property located within a tax increment district on the date
the district is created.
(2) In a district where the governing body has levied a
tax on the business use and occupancy of real estate, the
average aggregate market value of real property located
within the district and used or occupied for business
purposes during the last available 12-month period preceding
the date of creation of the district.
(3) In a district where the governing body has levied a
sales tax, the total amount of taxable sales, rentals and
services subject to the sales tax of the Commonwealth and
occurring within the district during the last calendar year
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or the last available 12-month period preceding the date of
creation of the district.
(4) In a district where the governing body has levied a
mercantile license tax, business privilege tax, net profits
tax or similar tax for the privilege of engaging in business
within the district, the total amount of taxable gross
receipts, net income or net profits, as the case may be,
realized by taxpayers at locations within the district during
their last taxable period which ended before the date of
creation of the district.
(5) In a district where the governing body has levied an
earned income tax, the total amount of taxable net earnings
realized by taxpayers at locations within the district during
their last taxable period which ended before the date of the
creation of the district.
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Section 2. This act shall take effect in 60 days.
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