Bill Summary – FastDemocracy

PRINTER'S NO.     2858
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                         HOUSE BILL
                         No. 2188
                                               Session of
                                                 2024
     INTRODUCED BY FRIEL, MADDEN, T. DAVIS, GIRAL, PROBST, SANCHEZ,
        HILL-EVANS, SCOTT, GREEN AND OTTEN, APRIL 8, 2024
     REFERRED TO COMMITTEE ON FINANCE, APRIL 8, 2024
                                    AN ACT
 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
    act relating to the public school system, including certain
    provisions applicable as well to private and parochial
    schools; amending, revising, consolidating and changing the
    laws relating thereto," in school finances, providing for
    commercial property tax redistribution.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
 as the Public School Code of 1949, is amended by adding a
 section to read:
    Section 618.    Commercial Property Tax Redistribution.--(a)
 Each intermediate unit shall establish a commercial property tax
 group for the purpose of collecting a portion of commercial
 property tax for redistribution to school districts served by
 the intermediate unit.
    (b)   Each school district shall select one representative to
 serve on the commercial property tax group established by the
 intermediate unit that serves the school district.
    (c)   Each school district shall provide the following to its
 respective commercial property tax group:
    (1)   In the first tax year beginning after the effective date
 of this paragraph, ten percent of the property taxes that the
 school district collected for that year on commercial properties
 located in the school district with a minimum assessment value
 of ten million dollars ($10,000,000).
    (2)   In the second tax year beginning after the effective
 date of this paragraph, twenty percent of the property taxes
 that the school district collected for that year on commercial
 properties located in the school district with a minimum
 assessment value of ten million dollars ($10,000,000).
    (3)   In the third tax year beginning after the effective date
 of this paragraph, thirty percent of the property taxes that the
 school district collected for that year on commercial properties
 located in the school district with a minimum assessment value
 of ten million dollars ($10,000,000).
    (4)   In the fourth tax year beginning after the effective
 date of this paragraph, forty percent of the property taxes that
 the school district collected for that year on commercial
 properties located in the school district with a minimum
 assessment value of ten million dollars ($10,000,000).
    (5)   In the fifth tax year beginning after the effective date
 of this paragraph, fifty percent of the property taxes that the
 school district collected for that year on commercial properties
 located in the school district with a minimum assessment value
 of ten million dollars ($10,000,000).
    (6)   In the sixth tax year beginning after the effective date
 of this paragraph, sixty percent of the property taxes that the
 school district collected for that year on commercial properties
 located in the school district with a minimum assessment value
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 of ten million dollars ($10,000,000).
    (7)   In the seventh tax year beginning after the effective
 date of this paragraph and each tax year thereafter, seventy
 percent of the property taxes that the school district collected
 for that year on commercial properties located in the school
 district with a minimum assessment value of ten million dollars
 ($10,000,000).
    (d)   Each commercial property tax group under this section
 shall establish a revenue account to deposit commercial property
 taxes from each school district.
    (e)   Each commercial property tax group under this section
 shall distribute the revenue to each school district served by
 the intermediate unit proportionately based on the school
 district's average daily membership in comparison to the total
 average daily membership for all school districts served by the
 intermediate unit.
    (f)   As used in this section, the following words and phrases
 shall have the meanings given to them in this subsection unless
 the context clearly indicates otherwise:
    "Average daily membership."     As defined in section 2501(3).
    "Commercial property tax."    Real property taxes collected on
 commercial real estate.
    "Commercial real estate."    As follows:
    (1)   Real estate that is zoned for a use other than
 residential or agricultural purposes.
    (2)   For a property that is zoned for mixed-use that includes
 residential purposes, the term includes the portion of the real
 property not designated for residential use based on the square
 footage of residential space in relation to the total square
 footage of the real property.
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    (3)   The term does not include single-family residential
 units or building lots such as condominiums, townhouses or homes
 in a subdivision when sold, leased or otherwise conveyed on a
 unit-by-unit basis even though the units may be part of a larger
 building or parcel of real estate.
    Section 2.   This act shall take effect in 60 days.
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Statutes/Laws affected: 
Printer's No. 2858: P.L.30, No.14