Pennsylvania HB 2153: An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in taxation by school districts, further providing for definitions, providing for disposition of data center property tax revenue and further providing for school district tax notices.

Bill Text

PRINTER'S NO. 2780
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2153
Session of
2026
INTRODUCED BY OLSOMMER, PUGH, WATRO, RADER, WALSH, ROWE,
ZIMMERMAN, FRITZ, OWLETT AND K.HARRIS, JANUARY 21, 2026
REFERRED TO COMMITTEE ON EDUCATION, JANUARY 21, 2026
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," in taxation by school districts,
further providing for definitions, providing for disposition
of data center property tax revenue and further providing for
school district tax notices.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 302 of the act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is
amended by adding a definition to read:
Section 302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Data center." A facility primarily used for storage,
management and processing of digital data related to the
functioning of artificial intelligence or artificial-
intelligence-powered language models. A facility shall not be
considered a data center unless the facility is used to house
all of the following:
(1) Computer and network systems, including associated
components such as servers, network equipment and appliances,
telecommunications and data storage systems.
(2) Data communications connections.
(3) Equipment used for the transformation, transmission,
distribution or management of at least one megawatt of
capacity of electrical power and cooling, including
substations, uninterruptible power supply systems, all
electrical plant equipment and associated air handlers.
(4) Internet-related and artificial-intelligence-related
equipment and services.
* * *
Section 2. The act is amended by adding a section to read:
Section 334.1. Disposition of data center property tax revenue.
(a) First fiscal year.--In the first fiscal year that
unabated property taxes are fully imposed on data centers
located within a school district, all revenue received by the
school district that is directly attributable to the imposition
of property taxes on data centers shall be used to fund
exclusions for homestead and farmstead properties.
(b) Subsequent fiscal years.--In the second fiscal year and
each fiscal year thereafter, an amount equivalent to the revenue
directly attributable to the imposition of property taxes on
data centers in the first full fiscal year in which property
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taxes are levied and collected shall be used to fund exclusions
for homestead and farmstead properties.
(c) Prior years.--If, prior to the effective date of this
subsection, a school district has imposed property taxes on data
centers for one or more full fiscal years, the first full fiscal
year after the effective date of this subsection shall be
considered the first fiscal year for the purposes of this
section. A school district may not be required to contribute
funds for property tax revenue collected from taxes imposed on
data centers in fiscal years prior to the effective date of this
subsection.
Section 3. Section 343(a) of the act is amended to read:
Section 343. School district tax notices.
(a) Tax notice.--A school district that implements homestead
and farmstead exclusions shall itemize the homestead and
farmstead exclusion on tax bills sent to homestead and farmstead
owners, indicating the original amount of tax liability, the
amount of the exclusion and the net amount of tax due after the
exclusion is applied. If a school district contributes funds
under section 334.1, the amount contributed and the amount of
exclusion granted under section 334.1 shall be included in the
itemization. The tax bill shall be easily understandable and
include a notice pursuant to subsection (b).
* * *
Section 4. This act shall apply to taxable years beginning
after December 31, 2025.
Section 5. This act shall take effect immediately.
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