PRINTER'S NO. 1308
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1217
Session of
2023
INTRODUCED BY NEILSON, MEHAFFIE, McNEILL, HILL-EVANS, DELLOSO
AND GREEN, MAY 24, 2023
REFERRED TO COMMITTEE ON FINANCE, MAY 24, 2023
AN ACT
Amending the act of November 26, 1997 (P.L.508, No.55), entitled
"An act providing for the tax exemption of institutions of
purely public charity; exempting real property owned by
State-related universities or Federal Government
instrumentalities from taxation; providing for unfair
competition; imposing penalties; and making repeals," further
providing for criteria for institutions of purely public
charity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5(e)(5) introductory paragraph of the act
of November 26, 1997 (P.L.508, No.55), known as the Institutions
of Purely Public Charity Act, is amended and the subsection is
amended by adding a paragraph to read:
Section 5. Criteria for institutions of purely public charity.
* * *
(e) Charity to persons.--
* * *
(5) [An] Except as provided under paragraph (6), an
institution shall not be considered to benefit a substantial
and indefinite class of persons who are legitimate subjects
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of charity if:
* * *
(6) Notwithstanding paragraph (5), an institution shall
be considered to benefit a substantial and indefinite class
of persons who are legitimate subjects of charity if:
(i) the institution is a domestic fraternal society,
order or association, that operates under a lodge system,
the net earnings of which are devoted to religious,
charitable, scientific, literary, educational and
fraternal purposes and qualifies for an exemption from
taxation under 26 U.S.C. § 501(c)(8) and (10) (relating
to exemption from tax on corporations, certain trusts,
etc.) and:
(A) the organization has been operating in this
Commonwealth for at least 100 years; and
(B) the organization has not been issued a
license under the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code.
(ii) the institution is a title-holding organization
that qualifies for an exemption from taxation under 26
U.S.C. § 501(c)(2) that is wholly owned or controlled by
one or more qualifying fraternal organization described
under subparagraph (i).
* * *
Section 2. This act shall take effect in 60 days.
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