PRINTER'S NO. 848
No. 782 Session of 1979
INTRODUCED BY S. E. HAYES, JR., POTT, KLINGAMAN, KNEPPER, LEVI,
PITTS, SIRIANNI, DIETZ, PUNT, A. C. FOSTER, JR., WENGER,
GEIST, DeVERTER AND E. G. JOHNSON, MARCH 20, 1979
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 20, 1979
A JOINT RESOLUTION
1 Proposing an amendment to the Constitution of the Commonwealth
2 of Pennsylvania, providing for spending and tax limitations
3 on the State and its political subdivisions.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby resolves as follows:
6 Section 1. The following amendment to the Constitution of
7 the Commonwealth of Pennsylvania is proposed in accordance with
8 the provisions of Article XI thereof:
9 That a section be added to Article VIII to read:
10 § 18. Spending and tax limitations.
11 (a) No governmental unit shall levy a tax on the assessed
12 valuation of real property at a millage rate which will produce
13 greater revenue than the tax yielded in fiscal year ending in
14 1978, excluding the value of new construction and improvements.
15 No governmental unit shall levy a tax on tangible personal
16 property.
17 (b) The total amount of taxes which may be imposed by either
18 the General Assembly or by the governing bodies of local
1 municipalities or school districts shall not exceed the revenue
2 limit. The revenue limit for any year shall be an amount
3 determined by applying to the total revenue of the taxing unit
4 in the most recent prior fiscal year for which such information
5 is available either (i) 105%, or (ii) a ratio based on changes
6 in State personal income in a manner determined by the General
7 Assembly, whichever is smaller. Revenue shall include all
8 general and special tax revenues, license fees and assessments
9 levied by the Commonwealth or its political subdivisions
10 including interest, penalties but excluding refunds and
11 excluding amounts received from the public discretionary
12 services benefiting the person charged, liquor store receipts,
13 insurance trust revenue and Federal aid. The revenue limit may
14 be further adjusted, as provided by the General Assembly, to
15 reflect population changes and for the additional funding needed
16 for unfunded pension liabilities existing prior to passage of
17 this amendment.
18 (c) The revenue limit established in this section shall not
19 apply to taxes imposed for the payment of principal and interest
20 on bonds issued for capital improvements.
21 (d) (1) The basis of the Commonwealth's revenue limitation
22 as provided in subsection (b) may be changed only by
23 constitutional amendment.
24 (2) The revenue limitation of each municipality and
25 school district may be changed if such change is approved by
26 a majority of those voting at a referendum placed on the
27 ballot by the appropriate legislative body at a regularly
28 scheduled general or municipal election.
29 (e) If responsibility for funding a program or programs is
30 transferred from one level of government to another, the revenue
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1 limits shall be adjusted to reflect such change, provided that
2 the total revenue authorized for collection by both State and
3 local governments does not exceed that amount which would have
4 been authorized without such change.
5 (f) The revenue limit otherwise may be exceeded only if all
6 of the following conditions are met:
7 (1) The Governor requests the General Assembly to
8 declare an emergency.
9 (2) The request is specific as to the nature of the
10 emergency, the dollar amount of the emergency, and the method
11 by which the emergency will be funded.
12 (3) The General Assembly thereafter declares an
13 emergency in accordance with the specifics of the Governor's
14 request by a two-thirds vote of the members elected to and
15 serving in each House.
16 The revenue limit may be exceeded only during the fiscal year
17 for which the emergency is declared.
18 (g) No expenses of State or local government shall be
19 incurred in any fiscal year which exceeds the sum of the revenue
20 limit provided herein plus Federal aid and any surplus from a
21 previous fiscal year.
22 (h) If total State or local revenues exceed the revenue
23 limit, the excess revenue shall be refunded to the taxpayer of
24 the taxing unit or the level of taxes shall be reduced in the
25 taxing unit in a manner authorized by the General Assembly.
26 Section 2. Subsection (a) of section 18 of Article VIII
27 shall take effect on the date of approval by the electorate and
28 the remaining provisions of section 18 shall take effect on the
29 effective date of legislation adopted pursuant to those
30 provisions or two years after the date of approval by the
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1 electorate, whichever shall first occur.
2 The Commonwealth and each municipality and school district
3 therein, for fiscal years beginning two years or later after the
4 date of approval of this amendment, shall not impose or receive
5 tax and non-tax revenues in excess of those received during the
6 fiscal year in which this amendment was approved unless, by such
7 date, the General Assembly shall have enacted legislation
8 restricting growth in such revenues to growth in population and
9 appropriate economic indices.
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