An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in school finances, providing for commercial property tax redistribution.

PRINTER'S NO. 448
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 465
Session of
2025
INTRODUCED BY FRIEL, SANCHEZ, HILL-EVANS, GIRAL, BURGOS, GREEN
AND MADDEN, FEBRUARY 4, 2025
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 2025
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
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respective commercial property tax group:
(1) In the first tax year beginning after the effective date
of this paragraph, ten per centum 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 per centum 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 per centum 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 per centum 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 per centum 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 per centum of the property taxes that
the school district collected for that year on commercial
properties located in the school district with a minimum
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assessment value 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 per
centum 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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