THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCHRODER, JUNE 24, 2009

REFERRED TO COMMITTEE ON COMMERCE, JUNE 24, 2009  

AN ACT

Amending the act of October 6, 1998 (P.L.705, No.92), entitled,

as amended, "An act providing for the creation of keystone

opportunity zones and keystone opportunity expansion zones to

foster economic opportunities in this Commonwealth, to

facilitate economic development, stimulate industrial,

commercial and residential improvements and prevent physical

and infrastructure deterioration of geographic areas within

this Commonwealth; authorizing expenditures; providing tax

exemptions, tax deductions, tax abatements and tax credits;

creating additional obligations of the Commonwealth and local

governmental units; and prescribing powers and duties of

certain State and local departments, agencies and officials,"

further providing for expansion for new parcels and for

payments.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 301.5(c) and 310 of the act of October

6, 1998 (P.L.705, No.92), known as the Keystone Opportunity

Zone, Keystone Opportunity Expansion Zone and Keystone

Opportunity Improvement Zone Act, added July 10, 2008 (P.L.1014,

No.79), are amended to read:

Section 301.5.  Expansion for new parcels.

* * *

(c)  Applications for certain zones.--For a keystone

opportunity zone that expires December 31, 2008, but is seeking

an extension under section 301.3, the application shall include

the request for an expansion under subsection (a). The

application must be submitted by December 31, [2008] 2009, and

include all ordinances, resolutions or other required action

from all affected political subdivisions approving the addition

of the acreage. If the expiration of a keystone opportunity zone

is delayed under this subsection, a political subdivision or its

designee may apply for an extension under section 301.3 and an

expansion under this section. If an extension is granted under

section 301.3, the extension and the expansion shall be deemed

to be effective January 1, 2009.

* * *

Section 310.  Payments.

The following shall apply to an agreement between a business

and a political subdivision entered into after the effective

date of this section in exchange for the approval of, or

otherwise relating to, the establishment of a keystone

opportunity zone, keystone opportunity expansion zone or

keystone opportunity improvement zone under this act, to include

an extension under section 301.2:

(1)  Except as otherwise required or authorized by law, a

business may not provide payments to a political subdivision

in exchange for the approval of, or otherwise relating to,

the designation or extension of a keystone opportunity zone,

keystone opportunity expansion zone or keystone opportunity

improvement zone in excess of 110% of the amount of real

property taxes payable to the political subdivision for the

tax year immediately prior to the year in which the

designation or extension is granted. The limitation on

payments set forth under this paragraph is waivable by the

parties and may increase by the percentage increase in the

payments that would occur if the property was not exempt from

local real property taxes.

(2)  Except as provided under paragraph (3), payments

made under paragraph (1) may be increased based on a taxpayer

assessment appeal or as necessary to correct any errors or

omissions in the county's assessment records. Payments may be

increased following a countywide reassessment based on

improvements to the property made prior to the approval of

the designation or expansion.

(3)  Payments may not be increased for the duration of

the designation or expansion based on an increase in the

assessed value of property due to improvements to the

property made subsequent to designation.

(4)  Any agreement to make payments under this section

shall be in writing and approved by a majority vote of the

governing body of the political subdivision at a meeting that

is subject to 65 Pa.C.S. Ch. 7 (relating to open meetings).

Section 2.  This act shall take effect in 60 days.