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FOR IMMEDIATE RELEASE |
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State
Rep. Bob Freeman D-Northampton |
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House committee holds hearing on tax-exempt properties bill
PITTSBURGH, March 7 – The state House Local Government Committee today held a hearing in Pittsburgh on legislation that would provide state funding to municipalities to compensate them for high levels of tax-exempt property, according to committee Chairman Bob Freeman, D-Northampton, the bill's sponsor.
House Bill 2018, known as the Tax Exempt Property Municipal Assistance Fund, would be funded by dedicating revenue generated by the 18 percent Johnstown Flood Tax. Under the proposal, any Pennsylvania municipality where 17 percent or more of the total assessed value of properties within its borders is tax-exempt would qualify for compensation. The Johnstown Flood Tax, enacted by the state legislature in 1936 to provide financial relief to victims of flooding in Johnstown, is levied on the sale of wine and liquors. It was intended to be temporary, but now provides the state with approximately $240 million in annual revenue.
“Municipalities with high percentages of tax-exempt properties are at a fiscal disadvantage which makes them unable to meet essential needs in their communities," Freeman said. "The funding this measure calls for would help these municipalities gain a greater degree of fiscal stability to provide essential services and help position them to attract much-needed economic development."
The legislation would require that each county annually provide the state with information regarding the assessed value of tax-exempt properties. The funding formula within the legislation is based on the assessed value of those properties if they were taxable. No single municipality would receive more than 10 percent of the total revenue in the fund, and property owned by the municipality itself would not be eligible.
“With my legislation, we can stabilize hundreds of needy communities across Pennsylvania and ensure their success for years to come,” Freeman said.
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