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| PRIOR PRINTER'S NO. 3145 | PRINTER'S NO. 3642 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GINGRICH, ROSS, CREIGHTON, FREEMAN, SANTARSIERO AND HENNESSEY, FEBRUARY 29, 2012 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 4, 2012 |
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| AN ACT |
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1 | Amending the act of January 19, 1967 (1968 P.L.992, No.442), |
2 | entitled, as amended, "An act authorizing the Commonwealth of |
3 | Pennsylvania and the local government units thereof to |
4 | preserve, acquire or hold land for open space uses," further |
5 | providing for local taxing options. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Section 7.1 of the act of January 19, 1967 (1968 |
9 | P.L.992, No.442), entitled "An act authorizing the Commonwealth |
10 | of Pennsylvania and the local government units thereof to |
11 | preserve, acquire or hold land for open space uses," amended |
12 | February 2, 2006 (P.L.15, No.4) and November 29, 2006 (P.L.1418, |
13 | No.154), is amended to read: |
14 | Section 7.1. Local Taxing Options.--(a) A local government |
15 | unit, excluding counties and county authorities, may by |
16 | ordinance impose, in addition to the statutory rate limits on |
17 | real estate taxes set forth in the municipal code of that local |
18 | government unit, a tax on real property not exceeding the |
19 | millage authorized by referendum under [this subsection] |
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1 | subsection (a.1). In the alternative, a local government unit, |
2 | excluding counties and county authorities, may by ordinance |
3 | impose, in addition to the earned income tax rate limit set |
4 | forth in the act of December 31, 1965 (P.L.1257, No.511), known |
5 | as "The Local Tax Enabling Act," a tax on the earned income of |
6 | the residents of that local government unit not exceeding the |
7 | rate authorized by referendum under [this subsection] subsection |
8 | (a.1). Revenue from the levy [shall be used] may only be used |
9 | for the following: |
10 | (1) to retire the indebtedness incurred in purchasing |
11 | interests in real property or in making additional acquisitions |
12 | of real property for the purpose of securing an open space |
13 | benefit or benefits under the provisions of this act or the act |
14 | of June 30, 1981 (P.L.128, No.43), known as the "Agricultural |
15 | Area Security Law[." Revenue from the levy may also be used]"; |
16 | (2) for transactional fees that are incidental to |
17 | acquisitions made in accordance with this act, including, but |
18 | not limited to, costs of appraisals, legal services, title |
19 | searches, document preparation, title insurance, closing fees |
20 | and survey costs[.]; or |
21 | (3) in an amount up to twenty-five percent of the annual | <-- |
22 | revenue annually, up to 25% of the accumulated balance of the | <-- |
23 | fund from the levy authorized by referendum, to maintain |
24 | property acquired pursuant to this act for an open space benefit |
25 | or benefits, or alternatively, for purposes of allocation, the | <-- |
26 | local government unit may create a maintenance fund into which |
27 | the local government unit may deposit in an amount up to 25% of |
28 | the annual revenue from the levy authorized by referendum, to |
29 | maintain property acquired pursuant to this act for an open |
30 | space benefit or benefits. In no event, however, shall any |
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1 | revenue in a particular year be used to maintain the property |
2 | acquired unless the annual debt service under clause (1) or |
3 | acquisition fees under clause (2) will be satisfied. The |
4 | acquisition fees shall be paid in their entirety at the time of |
5 | acquisition. |
6 | (a.1) The local taxing option authorized by [this] |
7 | subsection (a) shall not be exercised unless the governing body |
8 | of the local government unit shall by ordinance first provide |
9 | for a referendum on the question of the imposition at a specific |
10 | rate of the additional tax to be imposed and a majority of those |
11 | voting on the referendum question vote in favor of the |
12 | imposition of the tax. The referendum question shall provide the |
13 | electors a choice of the method by which the additional tax, if |
14 | authorized by the referendum, may be repealed. The additional |
15 | tax, however, shall not be repealed any sooner than five years |
16 | after the imposition of the tax or when any indebtedness |
17 | incurred for payment of the property or properties acquired has |
18 | been repaid, whichever is later. The ordinance of the governing |
19 | board of the local government unit providing for a referendum on |
20 | the question shall be filed with the county board of elections. |
21 | The referendum shall be governed by the provisions of the act of |
22 | June 3, 1937 (P.L.1333, No.320), known as the "Pennsylvania |
23 | Election Code." The election official shall cause the question |
24 | to be submitted to the electors of the local government unit at |
25 | the next primary, general or municipal election occurring not |
26 | less than the thirteenth Tuesday following the filing of the |
27 | ordinance with the county board of elections. At such election, |
28 | the question shall be submitted to the voters in the same manner |
29 | as other questions are submitted under the provisions of the |
30 | "Pennsylvania Election Code." The question to be placed upon the |
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1 | ballot shall be framed in the following two-part form: |
2 | Do you favor the imposition of a (describe tax in millage |
3 | or earned income tax rate) by (local government unit) to |
4 | be used to (purpose)? |
5 | If the tax is imposed, by which method do you prefer that |
6 | the tax be repealed, which may be no sooner than five |
7 | years after the imposition of the tax or when any |
8 | indebtedness incurred for payment of the property(ies) |
9 | acquired has been repaid, whichever is later: |
10 | ☐ By ordinance at the discretion of the governing |
11 | body. |
12 | ☐ By referendum. |
13 | (a.2) For those local government units that have imposed the |
14 | local taxing option on or before the effective date of this |
15 | subsection, the governing body of the local government unit may, |
16 | no sooner than five years after the imposition of the tax or |
17 | when any indebtedness incurred for payment of the property or |
18 | properties acquired has been repaid, whichever is later, choose |
19 | to repeal the additional tax by ordinance. |
20 | (a.3) For those local government units whose electors voted |
21 | in a referendum pursuant to subsection (a.1) to impose the |
22 | higher rate of tax, after the effective date of this subsection, |
23 | that the method of repeal of the local taxing option shall be by |
24 | referendum, the procedures for the filing of the ordinance and |
25 | the conduct of the referendum shall be as set forth in |
26 | subsection (a.1), except the question to be placed upon the |
27 | ballot shall be framed in the following form: |
28 | Do you favor the continued imposition of the (describe |
29 | tax in millage or earned income tax rate) by (local |
30 | government unit) to be used to (purpose)? |
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1 | If the referendum question passes, then the local option tax |
2 | shall continue to be imposed at the rate described in the |
3 | question. If the referendum question fails, then the increase in |
4 | the rate limit of the real estate or the earned income tax |
5 | provided for by this section shall be repealed effective in the |
6 | fiscal year following the referendum. Regardless of whether the |
7 | referendum question fails or passes, a referendum on either the |
8 | reimposition of the local option tax pursuant to subsection |
9 | (a.1) or the continued imposition of the local option tax |
10 | pursuant to this subsection shall not be held any sooner than |
11 | three years after the approval or disapproval of the referendum |
12 | question. |
13 | (a.4) For those local government units whose electors voted |
14 | in a referendum pursuant to subsection (a.1) to impose the |
15 | higher rate of tax, after the effective date of this subsection, |
16 | that the method of repeal of the local taxing option shall be by |
17 | ordinance, the governing body of a local government unit that |
18 | imposed the local taxing option may repeal the ordinance that |
19 | provided, pursuant to subsection (a), an addition to the rate |
20 | limits on real estate taxes or earned income taxes. The effect |
21 | of the repealed ordinance will be to repeal the increase in the |
22 | rate limits on real estate taxes or earned income taxes |
23 | effective in the fiscal year following the enactment of the |
24 | repealing ordinance. An ordinance enacted pursuant to this |
25 | subsection shall not be required to be approved by referendum. |
26 | (b) (1) Any of the following categories of real property |
27 | may be exempted from further millage increases: |
28 | (i) Real property in which the open space property interests |
29 | have been acquired by a local government unit in accordance with |
30 | this act. |
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1 | (ii) Real property that is subject to an easement acquired |
2 | in accordance with the act of June 30, 1981 (P.L.128, No.43), |
3 | known as the "Agricultural Area Security Law." |
4 | (iii) Real property from which TDRs have been transferred |
5 | and retired by a local government unit without their development |
6 | potential having occurred on other lands. |
7 | (2) The exemption from further millage increases authorized |
8 | by clause (1) shall become effective only if the governing body |
9 | of each taxing district that imposes a tax on the real property |
10 | approves the exemption either by ordinance in the case of a |
11 | county or municipal corporation or by resolution in the case of |
12 | a school district. |
13 | (3) The exemption from further millage increases for real |
14 | property as provided for in this subsection shall be authorized |
15 | only for real property qualifying for such exemption under the |
16 | provisions of section 2(b)(1) of Article VIII of the |
17 | Constitution of Pennsylvania. |
18 | (4) If the governing body of each taxing district so |
19 | resolves, the millage freeze authorized herein shall apply to |
20 | all eligible real property, whether the real property met the |
21 | criteria of this subsection prior to or subsequent to the date |
22 | of the ordinances and resolution imposing the millage freeze. |
23 | For prior acquisitions, the date on which the millage rate shall |
24 | be frozen is the date that the last of the required ordinances |
25 | or resolution becomes effective. For subsequent acquisitions, |
26 | the date on which the millage rate shall be frozen is the date |
27 | the local government unit completes the acquisition. The |
28 | governing body of each taxing district shall give prompt notice |
29 | to the appropriate tax collection agent of the exact amount of |
30 | the millage, the date it was frozen and each parcel to which the |
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1 | freeze applies. |
2 | (5) The exemptions granted under this act shall not be |
3 | considered by the State Tax Equalization Board in deriving the |
4 | market value of school district real property so as to reduce |
5 | the subsidy to that school district or to increase the subsidy |
6 | to any other school district. |
7 | Section 2. This act shall take effect immediately. |
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