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 -