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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY O'PAKE, LOGAN, MUSTO, STOUT, WASHINGTON, FONTANA, KASUNIC, KITCHEN AND BOSCOLA, FEBRUARY 19, 2009 |
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| REFERRED TO FINANCE, FEBRUARY 19, 2009 |
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| A JOINT RESOLUTION |
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1 | Proposing emergency integrated amendments to the Constitution of |
2 | the Commonwealth of Pennsylvania, further providing for |
3 | uniformity of taxation and for tax exemptions and special tax |
4 | provisions. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby resolves as follows: |
7 | Section 1. The General Assembly finds and declares as |
8 | follows: |
9 | (1) The system of funding public education in this |
10 | Commonwealth is broken, relying too heavily on the real |
11 | property tax, which does not accurately reflect an |
12 | individual's ability to pay. |
13 | (2) Many senior citizens and others living on fixed to |
14 | moderate incomes are being taxed out of their homes, while |
15 | many young families just starting out are prevented from |
16 | purchasing a first home and attaining the American dream of |
17 | homeownership because of the additional financial burden of |
18 | real property taxes. |
19 | (3) Of all the real property taxes imposed by political |
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1 | subdivisions, the homeowner school property tax represents |
2 | the greatest burden and an extreme financial hardship for too |
3 | many of our citizens. |
4 | (4) The Constitution currently prohibits the General |
5 | Assembly from eliminating property taxes on homestead |
6 | property only and from imposing a graduated personal income |
7 | tax. |
8 | (5) This constitutional amendment is intended to seek |
9 | voter approval to eliminate the ability of school districts |
10 | to impose real estate taxes on homestead property and to |
11 | replace that revenue with funds derived from other sources. |
12 | These sources include the imposition of a graduated income |
13 | tax to be used solely to fund homestead property tax |
14 | elimination. |
15 | (6) The Commonwealth is in the midst of a property tax |
16 | crisis that needs to be addressed immediately and |
17 | definitively. The citizens of this Commonwealth, especially |
18 | the children, deserve quality schools that provide quality |
19 | educations. However, these needs must be funded through an |
20 | equitable system of taxation which does not rely on the |
21 | taxing of homestead property. |
22 | (7) A major emergency threatens this Commonwealth and |
23 | the safety and welfare of this Commonwealth and its citizens |
24 | require the expedited amendment of the Constitution using the |
25 | procedure set forth under Article XI. |
26 | Section 2. The following integrated amendments to the |
27 | Constitution of Pennsylvania are proposed in accordance with |
28 | Article XI: |
29 | (1) That section 1 of Article VIII be amended to read: |
30 | § 1. Uniformity of taxation. |
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1 | [All] (a) Except as provided under subsection (b), all taxes |
2 | shall be uniform, upon the same class of subjects, within the |
3 | territorial limits of the authority levying the tax, and shall |
4 | be levied and collected under general laws. |
5 | (b) Any school district levying a tax on real property shall |
6 | be prohibited from levying the tax on homestead property for |
7 | taxable years beginning after the last day of the fiscal year in |
8 | which this subsection is ratified. |
9 | (2) That section 2(b) of Article VIII be amended to read: |
10 | § 2. Exemptions and special provisions. |
11 | * * * |
12 | (b) The General Assembly may, by law: |
13 | (i) Establish standards and qualifications for private |
14 | forest reserves, agricultural reserves, and land actively |
15 | devoted to agricultural use, and make special provision for the |
16 | taxation thereof; |
17 | (ii) Establish as a class or classes of subjects of taxation |
18 | the property or privileges of persons who, because of age, |
19 | disability, infirmity or poverty are determined to be in need of |
20 | tax exemption or of special tax provisions, and for any such |
21 | class or classes, uniform standards and qualifications. The |
22 | Commonwealth, or any other taxing authority, may adopt or employ |
23 | such class or classes and standards and qualifications, and |
24 | except as herein provided may impose taxes, grant exemptions, or |
25 | make special tax provisions in accordance therewith. No |
26 | exemption or special provision shall be made under this clause |
27 | with respect to taxes upon the sale or use of personal property, |
28 | and no exemption from any tax upon real property shall be |
29 | granted by the General Assembly under this clause unless the |
30 | General Assembly shall provide for the reimbursement of local |
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1 | taxing authorities by or through the Commonwealth for revenue |
2 | losses occasioned by such exemption; |
3 | (iii) Establish standards and qualifications by which local |
4 | taxing authorities may make uniform special tax provisions |
5 | applicable to a taxpayer for a limited period of time to |
6 | encourage improvement of deteriorating property or areas by an |
7 | individual, association or corporation, or to encourage |
8 | industrial development by a non-profit corporation; and |
9 | (iv) Make special tax provisions on any increase in value of |
10 | real estate resulting from residential construction. Such |
11 | special tax provisions shall be applicable for a period not to |
12 | exceed two years. |
13 | (v) Establish standards and qualifications by which local |
14 | taxing authorities in counties of the first and second class may |
15 | make uniform special real property tax provisions applicable to |
16 | taxpayers who are longtime owner-occupants as shall be defined |
17 | by the General Assembly of residences in areas where real |
18 | property values have risen markedly as a consequence of the |
19 | refurbishing or renovating of other deteriorating residences or |
20 | the construction of new residences. |
21 | (vi) Authorize local taxing authorities to exclude from |
22 | taxation an amount based on the assessed value of homestead |
23 | property. The exclusions authorized by this clause shall not |
24 | exceed one-half of the median assessed value of all homestead |
25 | property within a local taxing jurisdiction. A local taxing |
26 | authority may not increase the millage rate of its tax on real |
27 | property to pay for these exclusions. |
28 | (vii) For purposes of funding the elimination of school |
29 | district real estate taxes on homestead property, establish |
30 | nonuniform rates of taxation for any tax levied on personal |
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1 | income, increasing in proportion to the level of personal |
2 | income. |
3 | * * * |
4 | Section 3. (a) The General Assembly hereby determines that |
5 | a major emergency threatens or is about to threaten this |
6 | Commonwealth, and the safety or welfare of this Commonwealth |
7 | requires prompt amendment of the Constitution of Pennsylvania by |
8 | these constitutional amendments. |
9 | (b) Upon passage by the General Assembly of these proposed |
10 | constitutional amendments, the Secretary of the Commonwealth |
11 | shall proceed immediately to comply with the advertising |
12 | requirements of section 1(a) of Article XI of the Constitution |
13 | of Pennsylvania and shall transmit the required advertisements |
14 | to two newspapers in every county in which such newspapers are |
15 | published in sufficient time after passage of these proposed |
16 | constitutional amendments. The Secretary of the Commonwealth |
17 | shall submit these proposed constitutional amendments to the |
18 | qualified electors of this Commonwealth as a single ballot |
19 | question at the first primary, general or municipal election |
20 | occurring at least one month after the proposed constitutional |
21 | amendments are passed by the General Assembly which meets the |
22 | requirements of and is in conformance with section 1(a) of |
23 | Article XI of the Constitution of Pennsylvania. |
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