Pennsylvania HB 985: An Act providing for an annual revenue-sharing program for municipalities relating to tax-exempt real property; establishing the Tax-exempt Property Municipal Assistance Fund; imposing powers and duties on the Department of Community and Economic Development; and making a repeal.

Bill Text

PRIOR PRINTER'S NO. 1075 PRINTER'S NO. 2023
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 985
Session of
2025
INTRODUCED BY FREEMAN, MOUL, MADSEN, FLEMING, GIRAL, PROBST,
HILL-EVANS, McNEILL, OTTEN, PIELLI, BRENNAN, KENYATTA, SMITH-
WADE-EL, SANCHEZ, KHAN, DONAHUE, HARKINS, CIRESI,
SCHLOSSBERG, DALEY, DEASY, GREEN, MADDEN, CEPEDA-FREYTIZ,
DAVIDSON, POWELL AND SAPPEY, MARCH 20, 2025
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 25, 2025
AN ACT
Providing for an annual revenue-sharing program for
municipalities relating to tax-exempt real property;
establishing the Tax-exempt Property Municipal Assistance
Fund; imposing powers and duties on the Department of
Community and Economic Development; and making a repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Tax-exempt
Property Municipal Assistance Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Common level ratio." The ratio of assessed value to current
market value used generally in the county as last determined by
the State Tax Equalization Board under the act of June 27, 1996
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(P.L.403, No.58), known as the Community and Economic
Development Enhancement Act.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible municipality." A municipality that imposes a tax
on real property determined eligible under section 6(a).
"Fund." The Tax-exempt Property Municipal Assistance Fund
established under section 4.
"Liquor tax." The tax imposed and assessed upon the net
price of all liquors sold by the Pennsylvania Liquor Control
Board under the act of June 9, 1936 (1st Sp.Sess., P.L.13,
No.4), entitled "An act imposing an emergency State tax on
liquor, as herein defined, sold by the Pennsylvania Liquor
Control Board; providing for the collection and payment of such
tax; and imposing duties upon the Department of Revenue and the
Pennsylvania Liquor Control Board."
"Market value." The value of property as calculated by the
State Tax Equalization Board on an annual basis utilizing the
common level ratio.
"Market value of tax-exempt property." The quotient of the
base year market value of a property and the common level ratio
as calculated by the State Tax Equalization Board.
"Municipality." Any of the following:
(1) A city, borough, incorporated town or township.
(2) A home rule municipality which is a city, borough,
incorporated town or township.
"Qualified tax-exempt property." Real property that is
exempt from local real property taxes and owned by one of the
following:
(1) The Federal Government or an instrumentality of the
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Federal Government.
(2) The Commonwealth or an instrumentality of the
Commonwealth.
(3) A political subdivision, except real property owned
by the municipality in which the property is located.
(4) An entity that has obtained the exemption from real
property taxation under the authority granted to the General
Assembly under section 2(a)(i), (ii), (iv) or (v) of Article
VIII of the Constitution of Pennsylvania.
(5) A local authority.
Section 3. Tax-exempt property compilation.
(a) Compilation.--A county shall annually compile a list
identifying the market value of tax-exempt property within the
county.
(b) Annual report.--Beginning in calendar year 2026, a
county assessment office shall submit to the department an
annual report providing the information required in subsection
(c) and any additional information required by the department to
administer this act. The report shall be filed by June 30, 2026,
and each June 30 thereafter.
(c) Contents.--The report required under subsection (b)
shall be a compilation of all property located within the county
that is exempt from real property tax as of January 1 in the
year the report is required to be filed. The report shall
contain the following:
(1) The owner of each tax-exempt property.
(2) The location of the property, including mailing
address, name of the municipality where the property is
located and the uniform parcel identifier.
(3) The assessed value of the property.
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(4) Payments in lieu of tax or other funding received
under a Federal or State program based on the tax-exempt
status of the property. The amounts of the payments shall be
reported by the municipality to the county assessment office.
If the municipality fails to timely report the information to
the county assessment office, the county is not required to
include the information in the report, and the municipality
shall report the information directly