PRINTER'S NO. 3636
No. 664 Session of 2004
INTRODUCED BY EACHUS, GOODMAN, ARGALL, HASAY, McCALL, ARMSTRONG,
BIANCUCCI, BLAUM, BOYD, BROWNE, CAPPELLI, CAWLEY, COLEMAN,
CORRIGAN, COY, CURRY, DeLUCA, DERMODY, DeWEESE, DiGIROLAMO,
EGOLF, FABRIZIO, FORCIER, FRANKEL, FREEMAN, GEORGE, GERGELY,
GOOD, GRUCELA, HANNA, HARHAI, HERSHEY, HORSEY, JAMES,
JOSEPHS, KILLION, LAUGHLIN, LEVDANSKY, LEWIS, MAHER,
MANDERINO, MANN, MARKOSEK, MUNDY, NICKOL, PALLONE, PETRARCA,
PETRI, READSHAW, ROBERTS, RUBLEY, SAINATO, SOLOBAY, STABACK,
STURLA, SURRA, E. Z. TAYLOR, J. TAYLOR, THOMAS, TIGUE, WALKO,
WASHINGTON, WATERS, WHEATLEY, WOJNAROSKI, YOUNGBLOOD AND
YUDICHAK, APRIL 2, 2004
REFERRED TO COMMITTEE ON COMMERCE, APRIL 2, 2004
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to
2 determine the effectiveness of keystone opportunity zones,
3 keystone opportunity expansion zones and keystone opportunity
4 improvement zones.
5 WHEREAS, The Keystone Opportunity Zone, Keystone Opportunity
6 Expansion Zone and Keystone Opportunity Improvement Zone Act was
7 established to provide for the creation of keystone opportunity
8 zones, keystone opportunity expansion zones and keystone
9 opportunity improvement zones to foster economic opportunities
10 in this Commonwealth; and
11 WHEREAS, The primary components of keystone opportunity
12 zones, keystone opportunity expansion zones and keystone
13 opportunity improvement zones enable qualifying business and
14 residential property tax owners to be exempt from certain State
1 and local taxes, including real property taxes; and
2 WHEREAS, The real estate tax is the main source of locally
3 generated revenue to fund Pennsylvania's school districts and
4 municipalities and the base for the property tax is the value of
5 all real property within the borders of each school district and
6 municipality; and
7 WHEREAS, School districts and municipalities must often
8 increase property taxes because of an increase in revenue needs,
9 a reduction in the actual collection of revenues or an
10 alteration of the tax base; and
11 WHEREAS, Such reductions in the collection of revenues will
12 likely result when a significant portion of a school district's
13 or municipality's property is exempted from local property taxes
14 under the keystone opportunity zone, keystone opportunity
15 expansion zone or the keystone opportunity improvement zone
16 programs; and
17 WHEREAS, School districts and municipalities will be
18 encouraged to shift this financial burden to the remaining
19 taxable property in their boundaries; and
20 WHEREAS, No measurable data has been collected with regard to
21 the overall effectiveness of the keystone opportunity zone,
22 keystone opportunity expansion zone and keystone opportunity
23 improvement zone programs in sustaining real and long-term
24 economic growth in qualifying regions; therefore be it
25 RESOLVED, That the House of Representatives direct the
26 Legislative Budget and Finance Committee to determine the
27 effectiveness of the keystone opportunity zone, keystone
28 opportunity expansion zone and keystone opportunity improvement
29 zone programs in this Commonwealth; and be it further
30 RESOLVED, That, in furtherance of its study, the Legislative
20040H0664R3636 - 2 -
1 Budget and Finance Committee shall:
2 (1) Identify the programs' effects on economic
3 development in keystone opportunity zone, keystone
4 opportunity expansion zone and keystone opportunity
5 improvement zone areas as compared to nearby areas that do
6 not contain tax-free zones.
7 (2) Discuss any major trends in the types of new
8 business that have resulted from these programs and include
9 an estimate of the total number of new jobs that have been
10 created since the programs' inception.
11 (3) Examine the potential effects of statutory
12 requirements on school districts and municipalities
13 throughout Pennsylvania.
14 (4) Identify the potential loss of revenue from tax-
15 exempt properties that will shift to those remaining in the
16 tax base of each applicable school district and municipality
17 and discuss alternative means for school districts and
18 municipalities to recoup this revenue;
19 and be it further
20 RESOLVED, That the Legislative Budget and Finance Committee
21 report all findings, conclusions and recommendations to the
22 House of Representatives within six months of the passage of
23 this resolution.
C12L82BIL/20040H0664R3636 - 3 -