Bill > HB736

This bill amends Pennsylvania's municipal tax code to modify property tax exemptions for certain charitable and educational institutions. Specifically, the bill clarifies that tax exemptions will only apply to properties that are entirely used for the principal purposes of the institution, with no commercial usage. Under the revised law, if any portion of a property is used for commercial purposes or is not directly necessary for the institution's primary mission, that portion will not be exempt from taxation. This change impacts hospitals, universities, colleges, seminaries, academies, and other charitable or educational organizations. The key modification removes previous language that allowed partial exemptions and introduces a more stringent standard for tax-exempt status, ensuring that only properties fully dedicated to the institution's core charitable or educational purposes will receive a tax exemption. The bill will take effect 60 days after its passage, giving affected institutions time to review and potentially adjust their property usage to maintain tax-exempt status.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=736