Bill > HB985

This bill establishes a new annual revenue-sharing program to provide financial assistance to municipalities with a significant amount of tax-exempt property. Under the Tax-exempt Property Municipal Assistance Fund, revenues from the liquor tax will be distributed to eligible municipalities, which are defined as those where tax-exempt property comprises at least 15% of the total market value of assessed property. Municipalities must also meet specific median household income criteria, with additional considerations for county seats. The distribution formula calculates each municipality's share based on their proportion of tax-exempt property, with caps to ensure no municipality receives more than 10% of the total fund or exceeds a per-person limit that varies depending on the municipality's median income and percentage of tax-exempt property. Counties are required to annually compile and report detailed information about tax-exempt properties to the Department of Community and Economic Development, with penalties for non-compliance. The bill aims to provide financial support to local governments that host significant tax-exempt properties, which can reduce their potential tax base and local revenue generation. The program will begin in calendar year 2026, with funds to be distributed by September 15 of the following fiscal year, and the Department of Community and Economic Development is tasked with developing implementation guidelines within 180 days of the act's effective date.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=985