Bill Text: PA SB257 | 2009-2010 | Regular Session | Introduced

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Bill Title: A Joint Resolution proposing emergency integrated amendments to the Constitution of the Commonwealth of Pennsylvania, further providing for uniformity of taxation and for tax exemptions and special tax provisions.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2009-02-19 - Referred to FINANCE [SB257 Detail]

Download: Pennsylvania-2009-SB257-Introduced.html

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PRINTER'S NO. 261
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 257 Session of2009
INTRODUCED BY O'PAKE, LOGAN, MUSTO, STOUT, WASHINGTON, FONTANA, KASUNIC, KITCHEN AND BOSCOLA, FEBRUARY 19, 2009
REFERRED TO FINANCE, FEBRUARY 19, 2009
A JOINT RESOLUTION
Proposing emergency integrated amendments to the Constitution of
the Commonwealth of Pennsylvania, further providing for
uniformity of taxation and for tax exemptions and special tax
provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby resolves as follows:
Section 1. The General Assembly finds and declares as
follows:
(1) The system of funding public education in this
Commonwealth is broken, relying too heavily on the real
property tax, which does not accurately reflect an
individual's ability to pay.
(2) Many senior citizens and others living on fixed to
moderate incomes are being taxed out of their homes, while
many young families just starting out are prevented from
purchasing a first home and attaining the American dream of
homeownership because of the additional financial burden of
real property taxes.
(3) Of all the real property taxes imposed by political
subdivisions, the homeowner school property tax represents
the greatest burden and an extreme financial hardship for too
many of our citizens.
(4) The Constitution currently prohibits the General
Assembly from eliminating property taxes on homestead
property only and from imposing a graduated personal income
tax.
(5) This constitutional amendment is intended to seek
voter approval to eliminate the ability of school districts
to impose real estate taxes on homestead property and to
replace that revenue with funds derived from other sources.
These sources include the imposition of a graduated income
tax to be used solely to fund homestead property tax
elimination.
(6) The Commonwealth is in the midst of a property tax
crisis that needs to be addressed immediately and
definitively. The citizens of this Commonwealth, especially
the children, deserve quality schools that provide quality
educations. However, these needs must be funded through an
equitable system of taxation which does not rely on the
taxing of homestead property.
(7) A major emergency threatens this Commonwealth and
the safety and welfare of this Commonwealth and its citizens
require the expedited amendment of the Constitution using the
procedure set forth under Article XI.
Section 2. The following integrated amendments to the
Constitution of Pennsylvania are proposed in accordance with
Article XI:
(1) That section 1 of Article VIII be amended to read:
§ 1. Uniformity of taxation.
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[All] (a) Except as provided under subsection (b), all taxes
shall be uniform, upon the same class of subjects, within the
territorial limits of the authority levying the tax, and shall
be levied and collected under general laws.
(b) Any school district levying a tax on real property shall
be prohibited from levying the tax on homestead property for
taxable years beginning after the last day of the fiscal year in
which this subsection is ratified.
(2) That section 2(b) of Article VIII be amended to read:
§ 2. Exemptions and special provisions.
* * *
(b) The General Assembly may, by law:
(i) Establish standards and qualifications for private
forest reserves, agricultural reserves, and land actively
devoted to agricultural use, and make special provision for the
taxation thereof;
(ii) Establish as a class or classes of subjects of taxation
the property or privileges of persons who, because of age,
disability, infirmity or poverty are determined to be in need of
tax exemption or of special tax provisions, and for any such
class or classes, uniform standards and qualifications. The
Commonwealth, or any other taxing authority, may adopt or employ
such class or classes and standards and qualifications, and
except as herein provided may impose taxes, grant exemptions, or
make special tax provisions in accordance therewith. No
exemption or special provision shall be made under this clause
with respect to taxes upon the sale or use of personal property,
and no exemption from any tax upon real property shall be
granted by the General Assembly under this clause unless the
General Assembly shall provide for the reimbursement of local
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taxing authorities by or through the Commonwealth for revenue
losses occasioned by such exemption;
(iii) Establish standards and qualifications by which local
taxing authorities may make uniform special tax provisions
applicable to a taxpayer for a limited period of time to
encourage improvement of deteriorating property or areas by an
individual, association or corporation, or to encourage
industrial development by a non-profit corporation; and
(iv) Make special tax provisions on any increase in value of
real estate resulting from residential construction. Such
special tax provisions shall be applicable for a period not to
exceed two years.
(v) Establish standards and qualifications by which local
taxing authorities in counties of the first and second class may
make uniform special real property tax provisions applicable to
taxpayers who are longtime owner-occupants as shall be defined
by the General Assembly of residences in areas where real
property values have risen markedly as a consequence of the
refurbishing or renovating of other deteriorating residences or
the construction of new residences.
(vi) Authorize local taxing authorities to exclude from
taxation an amount based on the assessed value of homestead
property. The exclusions authorized by this clause shall not
exceed one-half of the median assessed value of all homestead
property within a local taxing jurisdiction. A local taxing
authority may not increase the millage rate of its tax on real
property to pay for these exclusions.
(vii) For purposes of funding the elimination of school
district real estate taxes on homestead property, establish
nonuniform rates of taxation for any tax levied on personal
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income, increasing in proportion to the level of personal
income.
* * *
Section 3. (a) The General Assembly hereby determines that
a major emergency threatens or is about to threaten this
Commonwealth, and the safety or welfare of this Commonwealth
requires prompt amendment of the Constitution of Pennsylvania by
these constitutional amendments.
(b) Upon passage by the General Assembly of these proposed
constitutional amendments, the Secretary of the Commonwealth
shall proceed immediately to comply with the advertising
requirements of section 1(a) of Article XI of the Constitution
of Pennsylvania and shall transmit the required advertisements
to two newspapers in every county in which such newspapers are
published in sufficient time after passage of these proposed
constitutional amendments. The Secretary of the Commonwealth
shall submit these proposed constitutional amendments to the
qualified electors of this Commonwealth as a single ballot
question at the first primary, general or municipal election
occurring at least one month after the proposed constitutional
amendments are passed by the General Assembly which meets the
requirements of and is in conformance with section 1(a) of
Article XI of the Constitution of Pennsylvania.
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