PRINTER'S NO. 1590
No. 1223 Session of 2001
INTRODUCED BY WOZNIAK, O'PAKE, MUSTO, KUKOVICH, D. WHITE,
HUGHES, ORIE, LAVALLE, ERICKSON, BOSCOLA, COSTA AND EARLL,
DECEMBER 6, 2001
REFERRED TO FINANCE, DECEMBER 6, 2001
AN ACT
1 Amending the act of October 6, 1998 (P.L.705, No.92), entitled,
2 as amended, "An act providing for the creation of keystone
3 opportunity zones and keystone opportunity expansion zones to
4 foster economic opportunities in this Commonwealth, to
5 facilitate economic development, stimulate industrial,
6 commercial and residential improvements and prevent physical
7 and infrastructure deterioration of geographic areas within
8 this Commonwealth; authorizing expenditures; providing tax
9 exemptions, tax deductions, tax abatements and tax credits;
10 creating additional obligations of the Commonwealth and local
11 governmental units; and prescribing powers and duties of
12 certain State and local departments, agencies and officials,"
13 further providing for the zone authorization and duration of
14 program.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Sections 301 and 301.1 of the act of October 6,
18 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone
19 and Keystone Opportunity Expansion Zone Act, amended or added
20 December 20, 2000 (P.L.841, No.119), are amended to read:
21 Section 301. Keystone opportunity zones.
22 (a) Establishment.--There is hereby established within the
23 department a program providing for keystone opportunity zones. A
1 keystone opportunity zone shall be comprised of deteriorated
2 property and shall not exceed a total of 5,000 acres.
3 (b) Zone authorization.--The department shall authorize not
4 more than 12 keystone opportunity zones in this Commonwealth.
5 Persons and businesses within an authorized keystone opportunity
6 zone that are qualified under this act shall be entitled to all
7 tax exemptions, deductions, abatements or credits set forth in
8 this act for a period not to exceed 15 years beginning [January
9 1, 1999, and ending on or before December 31, 2013] with the
10 date of designation of the keystone opportunity zone by the
11 department.
12 (c) Subzone designation.--The department may designate not
13 more than 12 subzones in each keystone opportunity zone. The
14 total number of subzone acres in a keystone opportunity zone
15 shall not exceed 5,000 acres in the aggregate.
16 (d) Authorization for local tax exemption.--Every political
17 subdivision within which a proposed subzone is located, whether
18 in whole or in part, is hereby authorized to provide tax
19 exemptions, deductions, abatements or credits to persons and
20 businesses qualified under this act. The political subdivision
21 shall agree to provide exemptions, deductions, abatements or
22 credits from all local taxes set forth in this act in order to
23 qualify to be designated a subzone. Except as provided in
24 section 303(e), the exemptions, deductions, abatements or
25 credits shall be effective January 1, 1999, if designation of a
26 subzone within the political subdivision is granted by the
27 department. The exemptions, deductions, abatements or credits
28 shall be binding upon the political subdivision for the duration
29 of the subzone designation.
30 (e) Authorization to extend the duration of a keystone
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1 opportunity zone or subzone.--A subzone of a keystone
2 opportunity zone may request to extend its designation as a
3 subzone for a period of three years. [A subzone that is part of
4 a keystone opportunity zone that will expire on December 31,
5 2008, may extend its designation as a subzone to December 31,
6 2010, or to December 31, 2013.] The request to extend a subzone
7 designation shall be made on a subzone-by-subzone basis. A
8 qualified political subdivision having an approved subzone
9 within its jurisdiction and seeking to extend the subzone
10 designation shall pass the required ordinances, resolutions or
11 other required action of the qualified political subdivision for
12 the necessary exemptions, deductions, abatements or credits
13 pursuant to this act for the period beginning after [December
14 31, 2008, or] December 31, 2010, as the case may be, and shall
15 submit copies of the ordinance, resolution or other action to
16 the department by June 30, [2001] 2002. The department may grant
17 the request to extend provided all the proper binding
18 ordinances, resolutions or other governing documents are passed
19 by all qualified political subdivisions within the subzone
20 extending the necessary exemptions, deductions, abatements and
21 credits to the entire subzone to [December 31, 2010, or]
22 December 31, [2013] 2015. The department shall approve or deny
23 the request for extension of duration of a subzone by July 31,
24 [2001] 2002, and shall provide written notice, irrespective of
25 whether approved or denied, to each qualified political
26 subdivision, resident and qualified business affected. Upon
27 approval of a request for extension of duration of a subzone,
28 the exemptions, deductions, abatements or credits shall be
29 binding upon the qualified political subdivision as provided in
30 subsection (d).
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1 Section 301.1. Keystone opportunity expansion zones.
2 (a) Establishment.--There is hereby established within the
3 department a program providing for keystone opportunity
4 expansion zones. A keystone opportunity expansion zone shall be
5 comprised of deteriorated property and shall not exceed a total
6 of 1,500 acres.
7 (b) Authorization.--The department shall authorize not more
8 than 12 keystone opportunity expansion zones in this
9 Commonwealth. Persons and businesses within an authorized
10 keystone opportunity expansion zone that are qualified under
11 this act shall be entitled to all tax exemptions, deductions,
12 abatements or credits set forth in this act for a period of [ten
13 or 13] 15 years beginning [January 1, 2001, and ending on
14 December 31, 2010, or December 31, 2013] with the date of
15 designation of the keystone opportunity expansion zone by the
16 department.
17 (c) Expansion subzone designation.--The department may
18 designate not more than eight expansion subzones in a keystone
19 opportunity expansion zone. The total number of expansion
20 subzone acres in a keystone opportunity expansion zone shall not
21 exceed 1,500 acres in the aggregate.
22 (d) Authorization for local tax exemption.--Every political
23 subdivision within which a proposed expansion subzone is
24 located, whether in whole or in part, is hereby authorized to
25 provide tax exemptions, deductions, abatements or credits to
26 persons and businesses qualified under this act for a period
27 [ending December 31, 2010, or December 31, 2013] of 15 years or
28 until December 31, 2015, whichever first occurs. The exemption
29 period shall be uniform within each expansion subzone. The
30 political subdivision shall agree to provide exemptions,
20010S1223B1590 - 4 -
1 deductions, abatements or credits from all local taxes set forth
2 in this act in order to qualify to be designated an expansion
3 subzone. The exemptions, deductions, abatements or credits shall
4 be effective January 1, 2001, if designation of an expansion
5 subzone within the political subdivision is granted by the
6 department. The exemptions, deductions, abatements or credits
7 shall be binding upon the political subdivision for the duration
8 of the expansion subzone designation.
9 Section 2. This act shall take effect immediately.
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