The Pennsylvania Constitution states that nonprofit organizations are only exempt from property taxes for the portion of the property used for the operation of the nonprofit. However, there are concerns over nonprofit properties being used for commercial purposes, contradicting the rules outlined in our Constitution.
To clarify this issue and assist local governments in collecting property taxes, I will soon be reintroducing a two-bill package to ensure that the property tax exemption for nonprofits is functioning as intended by only exempting land used for charitable purposes. For example, land utilized to operate a fast-food restaurant on a college campus would be subject to property taxes. By incorporating language directly from the state Constitution, we can eliminate any confusion about what is taxable and prevent hard-working, taxpaying families from having to cover for organizations that are not contributing their fair share.
Simplifying our laws regarding taxation and tax-exempt status benefits everyone involved. I urge you to support our local governments and taxpayers by co-sponsoring both pieces of legislation.