An Act authorizing local taxing authorities to provide for tax exemptions for improvements and redevelopment of certain underutilized property ; establishing the Economic Development and Mixed-Use Redevelopment Advisory Committee within the State Planning Board; and conferring powers and imposing duties on the Department of Community and Economic Development.

PRIOR PRINTER'S NO. 1691 PRINTER'S NO. 2024
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1446
Session of
2025
INTRODUCED BY SIEGEL, SCHLOSSBERG, KHAN, GIRAL, SANCHEZ, KUZMA,
KINKEAD, DONAHUE, HILL-EVANS, BOROWSKI AND INGLIS,
MAY 12, 2025
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 25, 2025
AN ACT
Authorizing local taxing authorities to provide for tax
exemptions for improvements and redevelopment of shopping
malls CERTAIN UNDERUTILIZED PROPERTY; establishing the
Economic Development and Mixed-Use Redevelopment Advisory
Committee within the State Planning Board; and conferring
powers and imposing duties on the Department of Community and
Economic Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Economic
Development and Mixed-Use Redevelopment of Shopping Malls Act.
Section 2. Findings and declaration of policy.
It is determined and declared as a matter of legislative
finding that there exists in this Commonwealth a number of
underutilized shopping malls which PROPERTY THAT provide an
economic liability to the communities in which they sit ARE
LOCATED. It is in the public interest to promote redevelopment
of these large parcels UNDERUTILIZED PROPERTIES and return them <--
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to function in accordance with sound and approved plans for
their redevelopment that will promote public safety, convenience
and welfare.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Attainable housing." Any of the following:
(1) A single-family residence that is subject to home
attainable deed restrictions and occupied by an individual or
family whose income is not more than 60% of the area median
gross income.
(2) A multiunit residential dwelling where at least a
percentage, as defined by the municipality, of the
residential units are:
(i) rent-restricted; and
(ii) occupied by an individual or family whose
income is not more than 60% of area median income.
"Board." The State Planning Board established by the act of
April 9, 1929 (P.L.177, No.175), known as The Administrative
Code of 1929.
"BROWNFIELD." AN ABANDONED, IDLED OR UNDERUTILIZED
INDUSTRIAL AND COMMERCIAL PROPERTY OF WHICH EXPANSION OR
REDEVELOPMENT IS COMPLICATED BY THE PRESENCE OR POTENTIAL
PRESENCE OF ENVIRONMENTAL CONTAMINATION.
"Committee." The Economic Development and Mixed-Use
Redevelopment Advisory Committee established by the board under
section 4.
"Department." The Department of Community and Economic
Development of the Commonwealth.
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"Developer." A taxpayer redeveloping a shopping mall AN
UNDERUTILIZED PROPERTY for economic development and mixed-use
redevelopment purposes.
"Economic development." Creating the conditions for economic
growth and improved quality of life by expanding the capacity of
individuals, businesses and communities to maximize the use of
their talents and skills to support innovation, job creation and
private investment.
"Economic development and mixed-use redevelopment." An
urban, suburban, village development or single building that
combines residential, commercial, cultural, institutional or
industrial uses to provide efficiency for the community in terms
of space, transportation and economic development.
"GREYFIELD." A PROPERTY WITH COMMERCIAL DEVELOPMENT AND
PUBLIC UTILITIES THAT HAVE BECOME ABANDONED, IDLED OR
UNDERUTILIZED.
"Local taxing authority." A county, municipal corporation,
institution district or school district having authority to levy
real estate taxes.
"Municipal corporation." A city, borough, incorporated town
or township.
"Project agreement." An agreement between a developer and a
local taxing authority stating the terms and conditions of the
redevelopment of a shopping mall AN UNDERUTILIZED PROPERTY
authorized by the local taxing authority for a tax exemption or
special tax provision under section 5.
"Property maintenance code." A municipal ordinance that
regulates the maintenance or development of real property. The
term includes a building code, zoning code, housing code and
public safety code.
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"Real estate tax." A tax on a homestead imposed or
authorized to be imposed by a local taxing authority.
"Redevelopment." Repair, construction or reconstruction,
including alterations and additions, having the effect of
rehabilitating a shopping mall AN UNDERUTILIZED PROPERTY so that
the shopping mall UNDERUTILIZED PROPERTY attains higher
standards of safety, health, economic use or amenity or is
brought into compliance with laws, ordinances or regulations
governing safety, health, economic use or amenity standards. The
term shall not include ordinary upkeep and maintenance.
"Serious violation." A violation of a State law or a
property maintenance code that poses an immediate imminent
threat to the health and safety of a dwelling occupant,
occupants in surrounding structures or passersby.
"Shopping mall." A large building or series of connected
buildings containing a variety of stores for the purpose of
retail, food service or recreation. The term includes A shopping
plazas PLAZA, shopping centers CENTER and mini malls MALL.
"Special tax provision." The refund or forgiveness of a
portion of a taxpayer's real estate tax liability as provided by
this act.
"UNDERUTILIZED PROPERTY." ANY OF THE FOLLOWING:
(1) A BROWNFIELD.
(2) A GREYFIELD.
(3) A SHOPPING MALL.
Section 4. Economic Development and Mixed-Use Redevelopment
Advisory Committee.
(a) Establishment.--The board shall establish the Economic
Development and Mixed-Use Redevelopment Advisory Committee for
the purpose of providing municipal corporations with guidance
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and best practices for the redevelopment of shopping malls
UNDERUTILIZED PROPERTIES into attainable housing and other
mixed-use spaces for the benefit of the community.
(b) Composition.--
(1) The committee shall be composed of members with
expertise in areas, including:
(i) Real estate development.
(ii) Municipal planning.
(iii) Economic development.
(iv) Land use planning.
(2) The committee shall include a member of a Statewide
trade association of real estate professionals involved in
all aspects of the residential and commercial real estate
industry.
(c) Guidelines.--The committee shall draft best practices
guidelines for the redevelopment of shopping malls UNDERUTILIZED
PROPERTIES based on national standards and models. The
guidelines shall be posted on the department's publicly
accessible Internet website within six months of the effective
date of this subsection.
Section 5. Authority to provide special tax provisions.
(a) Construction.--This act shall be construed to authorize
local taxing authorities to provide special tax provisions
related to an increase in the value of real estate resulting
from the redevelopment of shopping malls UNDERUTILIZED
PROPERTIES within the boundaries of the local taxing authority,
implementing section 2(b)(iii) of Article VIII of the
Constitution of Pennsylvania.
(b) Approval required.--A tax exemption or special tax
provision authorized under this act is not enforceable until the
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governing body of any one local taxing authority with
jurisdiction to levy real estate taxes on a property has
approved an ordinance or resolution adopting the tax exemption
or special tax provision. Other local taxing authorities may
approve a tax exemption or special tax provision subsequently.
(c) Notice.--
(1) Upon adoption of an ordinance or resolution adopting
the tax exemption or special tax provision under subsection
(a), each local taxing authority must post a notice of the
approval in a newspaper of general circulation in the area. A
local taxing authority may also post the notice on its
publicly accessible Internet website, if the local taxing
authority possesses a publicly accessible Internet website.
(2) If multiple local taxing authorities have mutual
jurisdiction to levy real estate taxes on a property, a joint
notice of implementation of the tax exemption or special tax
provision must be published in a newspaper of general
circulation in the area upon adoption by each local taxing
authority with mutual jurisdiction to levy real estate taxes
on the property and each local taxing authority must post a
notice of the adoption on its publicly accessible Internet
website, if the local taxing authority possesses a publicly
accessible Internet website.
Section 6. Exemption schedule.
(a) Tax exemption on assessment.--A local taxing authority
granting a tax exemption under this act may provide for a tax
exemption on the assessment attributable to the actual cost of
the redevelopment of shopping malls UNDERUTILIZED PROPERTIES or
up to a maximum cost uniformly established by the municipal
corporation. The maximum cost must uniformly apply within the
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local taxing authority's jurisdiction.
(b) Schedule.--Notwithstanding if an assessment eligible for
exemption is based upon actual cost or a maximum cost, the
actual amount of taxes exempt must be in accordance with at
least one of the following schedules, as determined by the local
taxing authority:
(1) For the first 10 years, 100% of the eligible
assessment is exempt for economic development and mixed-use
redevelopment.
(2) For any economic development and mixed-use
redevelopment that is approved by the municipal corporation
in which the shopping mall UNDERUTILIZED PROPERTY is located,
100% of the eligible assessment shall be exempt for an
additional two years if at least one of the following
criteria is met to the satisfaction of and by a date
established by the local taxing authority, and 100% of the
eligible assessment shall be exempt for an additional five
years if at least two of the following criteria are met to
the satisfaction of and by a date established by the local
taxing authority:
(i) A minimum amount of attainable housing as
defined and determined by the local taxing authority
granting the exemption in consultation with the local
planning authority.
(ii) Improved energy efficiency.
(iii) Installation of a renewable energy system that
provides electricity for 50% of the average electricity
needs for the economic development and mixed-use
redevelopment.
(iv) Creation of greener or open space.
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(v) Creation of lifestyle improvement projects,
including outdoor recreation space, walking paths,
bicycle paths or farmers markets.
(vi) Installation of charging stations for electric
vehicles.
(vii) Access to public transit.
(viii) The redevelopment of the shopping mall
UNDERUTILIZED PROPERTY is subject to a project labor
agreement.
(c) Sale or exchange.--A tax exemption authorized by an
ordinance or resolution adopted under this act is specific to
real property of the shopping mall UNDERUTILIZED PROPERTY and
shall not terminate upon the sale or exchange of the property.
(d) Estimate.--A local taxing authority must provide upon
request and within 30 days an estimate of the amount of
assessment exempted for each eligible property based on the
exemption schedule under subsection (b).
(e) Repayment.--
(1) A local taxing authority shall receive a return of
the local taxing authority's proportional share of taxes
exempt under this act if, within five years following the
redevelopment of the shopping mall UNDERUTILIZED PROPERTY,
the following occur:
(i) a serious violation of State law or a property
maintenance code exists on the property and the owner has
taken no substantial steps to correct the violation
within six months following notification of the violation
and for which fines or other penalties or a judgment to
abate or correct were imposed by a magisterial district
judge at law or in equity, not subject to appellate
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review, or imposed by a court of common pleas; or
(ii) the developer is subject to a municipal permit
denial under 53 Pa.C.S. Ch. 61 (relating to neighborhood
blight reclamation and revitalization) in connection with
the redevelopment of the shopping mall UNDERUTILIZED
PROPERTY.
(2) At the time a project agreement is executed, if the
developer has not completed each requirement for exemption
under section 8(a) or is ineligible under section 8(b) or
(c), the local taxing authority shall file a lien against the
tax-exempt property at the rate of the estimated amount of
assessment under subsection (d). The lien shall be satisfied
by the local taxing authority at the end of the fifth year
following the completion of the redevelopment if there have
been no serious violations against the property that have not
been corrected to the satisfaction of the local taxing
authority. The lien on the property remains under subsection
(c) upon the sale or exchange of the shopping mall
UNDERUTILIZED PROPERTY.
Section 7. Exemption incentives procedure.
(a) Notification.--A developer desiring tax exemption for
the redeveloped property as authorized by an ordinance or
resolution adopted under this act must notify the local taxing
authority granting the exemption in writing on an application
form provided by the local taxing authority, which must be
submitted at the time the developer secures the building permit
or, if no building permit or other notification is required for
the redevelopment of the property, at the time the developer
commences construction. The application must include the
following information:
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(1) A notarized statement of tax obligations, signed by
the applicant and the local taxing authority.
(2) An outline of specifications for the redevelopment
of the shopping mall UNDERUTILIZED PROPERTY indicating, with
as much specificity as practicable, the materials to be used
for exterior and interior finishes.
(3) An itemized cost estimate for the redevelopment of
the shopping mall UNDERUTILIZED PROPERTY. The itemization
must:
(i) be on contractor letterhead; and
(ii) indicate the property address of the
redevelopment project.
(4) A preliminary architectural drawing or blueprint for
the redevelopment.
(5) A recent appraisal of the property, if available.
(6) An applicable building permit application or
building permit.
(7) An income and expense report for the shopping mall
UNDERUTILIZED PROPERTY, which may be submitted directly to
the county assessment office in order to protect the
confidentiality of the information.
(8) The final decision of the zoning authority or other
regulatory agency granting relief, if applicable.
(9) The signature of the applicant and the date of
signing.
(10) Proof of a project labor agreement for the
redevelopment, if applicable.
(b) Estimate.--The amount of assessment deemed eligible for
tax exemption under subsection (c) shall be available for public
inspection and copying so that a subsequent purchaser may be
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informed of the amount of taxes to be paid after the exemption
expires.
(c) County assessment office.--
(1) A copy of the application submitted under subsection
(a) shall be forwarded to the county assessment office. After
completion of the redevelopment of the shopping mall
UNDERUTILIZED PROPERTY, the county assessment office shall:
(i) Separately assess the redevelopment and
calculate the amounts of the assessment eligible for tax
exemption in accordance with the limits established by
the local taxing authorities.
(ii) Notify the developer and the local taxing
authorities of the reassessment and amounts of the
assessment eligible for exemption.
(2) Appeals from a reassessment and the amounts eligible
for the exemption may be made by the developer or the local
taxing authorities.
(d) Amendment of ordinance or resolution.--The cost of
redevelopment to be exempt and the schedule of taxes exempt that
exist at the time of the initial request for tax exemption must
apply to the exemption request. A subsequent amendment to the
ordinance or resolution does not apply to a request initiated
prior to adoption of the amendment.
Section 8. Eligibility requirements.
(a) Compliance.--The completed redevelopment must:
(1) Conform to zoning ordinance requirements.
(2) Correct any municipal code violation.
(b) Ineligibility.--A property is deemed ineligible for tax
exemption under section 7(a) if any of the following apply:
(1) The property receives other property tax abatement
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or exemption incentives for new construction or improvement.
(2) The property receives tax relief through a State
program.
(3) The property owner or developer is delinquent on
property taxes related to the subject property, unless the
delinquent taxes are paid prior to redevelopment, or payment
of delinquent taxes has been arranged with the local taxing
authority in accordance with an installment plan.
(4) The property owner has a legal or equitable interest
in other property for which taxes are delinquent, unless the
delinquent taxes are paid prior to redevelopment, or payment
of delinquent taxes has been arranged with the local taxing
authority in accordance with an installment plan.
(5) The property owner has a legal or equitable interest
in other property within the boundaries of the municipal
corporation for which there exists a serious violation that
has not been remedied prior to filing the application under
section 7.
(6) Construction or other improvements for the
redevelopment of the shopping mall UNDERUTILIZED PROPERTY has
commenced prior to filing an application under section 7.
(c) Prohibitions.--For the period of time that a AN
UNDERUTILIZED property receives tax exemption under this act, a
purchase or sale of the UNDERUTILIZED property or a portion of
the UNDERUTILIZED property may not be structured to exclude or
exempt the transaction from a realty transfer tax due to a
taxing authority that would not be excluded or exempt, except
for the following:
(1) A sheriff sale or tax claim bureau sale.
(2) A corrective deed.
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(3) A transfer by a mortgagor to the holder of a bona
fide mortgage in default in lieu of a foreclosure.
(4) A transfer to a judicial sale in which the
successful bidder is the bona fide holder of a mortgage.
(5) A transaction excluded from the realty transfer tax
under Article XI-C of the act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
Section 9. Effective date.
This act shall take effect in 60 days.
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