Pennsylvania SB 1277: An Act amending the act of December 1, 1977 (P.L.237, No.76), known as the Local Economic Revitalization Tax Assistance Act, further providing for title of act, for construction, for definitions and for deteriorated areas; providing for ordinance and resolution limitations; further providing for exemption schedule and for procedure for obtaining exemption; and providing for public registry.

Bill Text

PRINTER'S NO. 1632
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1277
Session of
2026
INTRODUCED BY STEFANO, ROTHMAN, PICOZZI, DUSH, FONTANA AND
LAUGHLIN, APRIL 23, 2026
REFERRED TO URBAN AFFAIRS AND HOUSING, APRIL 23, 2026
AN ACT
Amending the act of December 1, 1977 (P.L.237, No.76), entitled
"An act authorizing local taxing authorities to provide for
tax exemption for certain deteriorated industrial, commercial
and other business property and for new construction in
deteriorated areas of economically depressed communities;
providing for an exemption schedule and establishing
standards and qualifications," further providing for title of
act, for construction, for definitions and for deteriorated
areas; providing for ordinance and resolution limitations;
further providing for exemption schedule and for procedure
for obtaining exemption; and providing for public registry.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title and section 2 of the act of December 1,
1977 (P.L.237, No.76), known as the Local Economic
Revitalization Tax Assistance Act, are amended to read:
AN ACT
Authorizing local taxing authorities to provide for tax
exemption for [certain deteriorated industrial, commercial
and other business] deteriorated property and for new
construction in deteriorated areas of economically depressed
communities; providing for an exemption schedule and
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establishing standards and qualifications.
Section 2. Construction.
This act shall be construed to authorize local taxing
authorities to exempt new construction in deteriorated areas of
economically depressed communities and improvements to [certain
deteriorated industrial, commercial and other business]
deteriorated property thereby implementing Article VIII, section
2(b)(iii) of the Constitution of Pennsylvania.
Section 2. The definitions of "deteriorated property" and
"local taxing authority" in section 3 of the act are amended and
the section is amended by adding definitions to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
"Converted residential portion." A portion of a building or
structure that previously served a use other than residential
use and has been converted or improved to provide residential
use, including an associated area of the property that serves
the converted residential portion, such as resident or guest
parking.
"Deteriorated property." Any [industrial, commercial or
other business property owned by an individual, association or
corporation, and located in a deteriorating area, as hereinafter
provided, or any such property which has been the subject of an
order by a government agency requiring the unit to be vacated,
condemned or demolished by reason of noncompliance with laws,
ordinance or regulations.] of the following:
(1) An industrial, commercial or other business property
or property previously used for governmental purposes,
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including a school, owned by an individual, association or
corporation that is located in a deteriorated area.
(2) A property that has been the subject of an order by
a government agency requiring the property to be vacated,
condemned or demolished by reason of noncompliance with laws,
ordinances or regulations.
(3) A property that is no longer in use and must be
demolished to make residential use economically viable.
"Dwelling unit." A building or portion of a building
intended for occupancy as separate living quarters by one or
more individuals and containing living, sleeping, cooking and
sanitation facilities for the exclusive use of the occupants.
* * *
"Local taxing authority." A county, city, borough,
incorporated town, township[, institution district] or school
district having authority to levy real property taxes.
"Mixed-use building." A building or portion of a building
that combines residential use with a use other than residential
use, including business, commercial, industrial, cultural or
institutional use.
* * *
"Residential building." As follows:
(1) A building or portion of a building that contains
one or more dwelling units, including any of the following:
(i) A detached, semidetached or attached one-family
or two-family dwelling, including a townhouse, row house
or associated accessory dwelling unit.
(ii) A duplex, triplex, quadplex or other
multifamily dwelling, including an apartment building.
(iii) The portion of a mixed-use building intended
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for residential use.
(2) The term does not include a hotel, motel, transient
lodging establishment, dormitory, institutional group living
facility or other occupancy in which the primary