PRINTER'S NO. 336

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

338

Session of

2017

INTRODUCED BY BROWNE, MENSCH, COSTA, YUDICHAK AND BREWSTER,

FEBRUARY 15, 2017

REFERRED TO FINANCE, FEBRUARY 15, 2017

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 defining

"tax increment" and "tax increment base"; and further

providing for determination of tax increment and tax

increment base and for allocation of positive tax increments.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"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:

increase in the total market value of taxable real property

business use and occupancy of such taxable real property.

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.

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.]

August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to as the

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.

"Tax increment base." The term means one or more of the

following, as appropriate:

the district is created.

the date of creation of the district.

sales tax, the] The total amount of taxable sales, rentals

and services subject to the sales tax of the Commonwealth

under Article II of the act of March 4, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971, and occurring within

the district during the last calendar year or the last

available 12-month period preceding the date of creation of

the district.

their last taxable period which ended before the date of

creation of the district.

* * *

Section 2. Section 6(b) of the act is amended and the

section is amended by adding a subsection to read:

Section 6. Determination of tax increment and tax increment

base.

* * *

the finance officer of the municipality which created the

base of a sales tax levied by a governing body or any other tax

increment base contemplated hereby, except for the State sales

tax base, in any manner which is reasonable and prudent and

meets sound business practice.

(b.1) Determination of sales tax base.--Upon application in

writing by the finance officer of the municipality which created

the district, the Department of Revenue shall calculate the

State sales tax base under Article II of the act of March 4,

1971 (P.L.6, No.2) , known as the Tax Reform Code of 1971, with

respect to vendors located within the tax incentive district.

(b.1) Determination and transfer of State sales tax

increments.--Within 30 days of the end of each quarter, the

Department of Revenue shall calculate and notify the Secretary

of the Budget of the amount of the positive State sales tax

increment allocable to each tax increment district. Within 10

days of receiving the notification, the Secretary of the Budget

shall direct the State Treasurer to transfer an amount equal to

the State sales tax increment from the General Fund to the

* * *

Section 5. This act shall take effect in 60 days.