PRINTER'S NO. 3908
No. 2659 Session of 2002
INTRODUCED BY R. MILLER, NICKOL, CAPPELLI, CREIGHTON, FEESE, HANNA, MARSICO, READSHAW, SAYLOR, SCHULER, S. H. SMITH, STEELMAN, STEIL, STETLER, R. STEVENSON, E. Z. TAYLOR, THOMAS, TIGUE, TULLI, WATSON AND WILT, MAY 13, 2002
REFERRED TO COMMITTEE ON FINANCE, MAY 13, 2002
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, further providing for limitations on
3 incurring of debt by school districts, for assessor reports,
4 for adoption of referendum on the question of the levy of an
5 earned income and net profits tax, for referendum
6 requirements for increasing property taxes previously reduced
7 and for local tax study commission; providing for continuity
8 of homestead exclusion; and further providing for disposition
9 of earned income and net profits tax revenue.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Sections 8022(f), 8584(i), 8703, 8704 and 8705 of
13 Title 53 of the Pennsylvania Consolidated Statutes are amended
14 to read:
15 § 8022. Limitations on incurring of other debt.
16 * * *
17 (f) Limitations on incurring of debt by school districts.--
18 (1) Except for purposes of refinancing existing debt
19 under this subpart and notwithstanding the other provisions
20 of this section, no school district of the first class A
1 through fourth classes shall incur any new nonelectoral debt 2 or lease rental debt if the aggregate net principal amount of 3 such new debt together with any other net nonelectoral debt 4 and lease rental debt then outstanding would cause the 5 outstanding total of net nonelectoral debt plus net lease 6 rental debt of the school district to exceed 225% of the 7 school district's borrowing base as defined in section 8002 8 (relating to definitions). This section shall apply 9 regardless of whether there is an election by the school 10 district under section 8703 (relating to adoption of 11 referendum). 12 (2) The calculation of the limitation under this 13 subsection shall not include any portion of debt allocated to 14 or by a school district for the support of an area 15 vocational-technical school or intermediate unit. 16 § 8584. Administration and procedure. 17 * * * 18 (i) Reports.--At the same time as the assessor certifies the 19 tax duplicate, the assessor shall provide to the governing 20 bodies of the county and each political subdivision within the 21 county upon request and at no charge a certified report listing 22 at least all of the following information: 23 (1) The parcel number of each parcel which is approved, 24 in whole or in part, as homestead property. 25 (2) The assessed value of each parcel which is approved, 26 in whole or in part, as homestead property. 27 (3) The portion of the assessed value of each parcel 28 listed under paragraph (2) which is approved as homestead 29 property. 30 (4) The median assessed value of the homestead property 20020H2659B3908 - 2 -
1 listed in paragraph (3). 2 (5) The parcel number of each parcel which is approved, 3 in whole or in part, as farmstead property. 4 (6) The assessed value of each parcel which is approved, 5 in whole or in part, as farmstead property. 6 (7) The portion of the assessed value of each parcel 7 listed under paragraph (6) which is approved as farmstead 8 property. 9 The assessor shall also provide to the governing body of a 10 school district considering an earned income and net profits tax 11 levy under Chapter 87 (relating to other subjects of taxation) 12 upon request and at no charge an interim report with preliminary 13 information as of June 30. The governing body of the county may 14 set reasonable fees for providing customized reports or services 15 not otherwise required under this chapter or other applicable 16 law to political subdivisions. 17 * * * 18 § 8703. Adoption of referendum. 19 (a) General rule.-- 20 (1) In order to levy an earned income and net profits 21 tax under this chapter, a governing body shall use the 22 procedures set forth in subsection (b). 23 (2) Any governing body after making an election to levy 24 an earned income and net profits tax under this chapter may, 25 after a period of at least three full fiscal years, elect 26 under the provisions of subsection (c) to levy, assess and 27 collect the taxes prohibited by section 8701(b) (relating to 28 general tax authorization) to the extent otherwise provided 29 by law. If the electorate approves such referendum, the 30 governing body shall lose the authority to continue to levy 20020H2659B3908 - 3 -
1 an earned income and net profits tax authorized under this 2 chapter. 3 (3) Upon defeat of a public referendum held under the 4 provisions of subsection (b) or (d), the governing body and 5 electors of a school district may, after a period of at least 6 three full fiscal years, use the procedures set forth in 7 subsection (b) or (d) to establish a local tax study 8 commission or initiate another referendum to levy an earned 9 income and net profits tax under this chapter. 10 (b) Public referendum requirements.--Subject to the notice 11 and public hearing requirements of section 8716 (relating to 12 procedure and administration), a governing body may levy the 13 earned income and net profits tax under this chapter only by 14 obtaining the approval of the electorate of the affected school 15 district in a public referendum at only the municipal election 16 preceding the fiscal year when the earned income and net profits 17 tax will be initially imposed. The referendum question must 18 state the initial rate of the proposed earned income and net 19 profits tax, the reason for the tax and the amount of proposed 20 budgeted revenue growth, if any, in the first fiscal year 21 following adoption of the referendum, expressed as a percent 22 increase over the prior year's budgeted revenue. If a stated 23 reason for the tax is a reduction in real property taxes by 24 means of a homestead exclusion, the governing body shall use the 25 best estimate of the reduction that is sustainable in at least 26 five subsequent years as additional parcels are approved for the 27 homestead exclusion. Any increase in budgeted revenue between 28 the first fiscal year following adoption of the referendum and 29 the prior year's budgeted revenue shall not exceed the annual 30 percent change in the Statewide average weekly wage. The 20020H2659B3908 - 4 -
1 question shall be in clear language that is readily 2 understandable by a layperson. For the purpose of illustration, 3 a referendum question may be framed as follows: 4 Do you favor the imposition of an earned income and net 5 profits tax of X% to be used to replace (names of local 6 taxes to be repealed), reduce real property taxes by X% 7 by means of a homestead exclusion and provide for a one- 8 time revenue increase of X% over the preceding fiscal 9 year? 10 A nonlegal interpretative statement must accompany the question 11 in accordance with section 201.1 of the act of June 3, 1937 12 (P.L.1333, No.320), known as the Pennsylvania Election Code, 13 that includes the following: the initial rate of the earned 14 income and net profits tax and the maximum allowable rate of the 15 earned income and net profits tax imposed under this chapter; 16 the estimated revenues to be derived from the initial rate of 17 the earned income and net profits tax imposed under this 18 chapter; the amount of proposed revenue growth, if any, in the 19 first fiscal year following adoption of the referendum; the 20 estimated reduction in real property taxes and the elimination 21 of certain existing taxes under this chapter; the identification 22 of the existing taxes to be eliminated under this chapter; the 23 method to be used to reduce real property taxes; the class or 24 classes of real property for which real property taxes would be 25 reduced; and the estimated amount of real property tax reduction 26 by class, expressed as an average percent reduction by class. 27 Any governing body which uses the procedures under this section 28 shall not be subject to the provisions of section 8704 (relating 29 to public referendum requirements for increasing property taxes 30 previously reduced) for any future increases in the earned 20020H2659B3908 - 5 -
1 income and net profits tax rates authorized under this chapter.
2 Any future real property tax rate increases are subject to the
3 provisions of section 8704. If the ballot question fails to
4 receive a majority vote pursuant to this section, approval of
5 the electorate under section 8704 shall not be required to
6 increase the rate of any tax which the governing body of the
7 affected school district is authorized to levy and increase
8 pursuant to any other act.
9 (c) Public referendum requirements to end participation
10 under this chapter.--Subject to the notice and public hearing
11 requirements in section 4 of the Local Tax Enabling Act, a
12 governing body may elect to end participation under this chapter
13 in accordance with subsection (a)(2) by obtaining the approval
14 of the electorate of the affected school district in a public
15 referendum at a municipal election.
16 (d) Public requirements to initiate referendum.--
17 (1) If the governing body of a school district fails to
18 place a referendum question on the ballot within two years
19 after the effective date of this chapter, the electors of the
20 school district may:
21 (i) Circulate a petition which, if signed by
22 electors comprising [2%] 5% of the number of electors
23 voting for the office of Governor in the last
24 gubernatorial election in the school district and filed
25 with the election officials and submitted to the
26 governing body thereof, shall require the governing body
27 to establish a local tax study commission. The provisions
28 under paragraph (2)(v), (vi), (vii), (viii) (ix) and (x)
29 shall not apply to this subparagraph.
30 (ii) If the local tax study commission makes a
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1 recommendation to levy the earned income and net profits
2 tax under this chapter and the governing body fails to
3 place the recommendation or other alternative of the
4 governing body authorized under this chapter on the
5 ballot in accordance with this chapter at the next
6 municipal election occurring at least 90 days after the
7 submission of the recommendation to the governing body, a
8 petition under this paragraph may be circulated. If the
9 petition is signed by the electors comprising [5%] 10% of
10 the number of electors voting for the office of Governor
11 in the last gubernatorial election in the school district
12 and filed with election officials at least 90 days prior
13 to the next municipal election, the petition shall compel
14 the election officials to place the recommendation upon
15 the ballot at the next municipal election occurring at
16 least 90 days after the filing of the petition.
17 (2) The following requirements shall apply to the
18 process under paragraph (1):
19 (i) The name and street address of each elector
20 signing the petition and of the person filing the
21 petition shall be clearly stated on the petition. The
22 petition shall include an affidavit of the circulator
23 that he or she is a qualified elector of the school
24 district referred to in the petition; that the signers
25 signed with full knowledge of the contents of the
26 petition; that the signers' residences are correctly
27 stated; and that, to the best of the circulator's
28 knowledge and belief, the signers are qualified electors.
29 (ii) The election officials shall, within ten days
30 after filing, review the petition as to the number and
20020H2659B3908 - 7 -
1 qualifications of signers. If the petition appears to be 2 defective, the election officials shall immediately 3 notify the person filing the petition of the defect and 4 may reject the petition if warranted. 5 (iii) The petition as submitted to the election 6 officials, along with the list of signatories, shall be 7 open to public inspection in the office of the election 8 officials. 9 (iv) If the election officials find that the 10 petition as submitted is in proper order, they shall send 11 copies of the petition without signatures thereon to the 12 governing body involved. 13 (v) The procedure for the referendum shall be 14 governed by the act of June 3, 1937 (P.L.1333, No.320), 15 known as the Pennsylvania Election Code. 16 (vi) If the election officials find the petition 17 meets the requirements of this chapter, they shall place 18 the proposal on the ballot in a manner fairly 19 representing the content of the petition for decision by 20 referendum at the proper election. 21 (vii) The election officials shall certify the date 22 for the referendum and shall notify the governing body at 23 least 30 days prior to such date. 24 (viii) At least 30 days' notice of the referendum 25 shall be given by proclamation of the governing body. A 26 copy of the proclamation shall be posted at each polling 27 place on the day of the election and shall be published 28 once in at least one newspaper of general circulation 29 which is distributed within the school district during 30 the 30-day period prior to the election. 20020H2659B3908 - 8 -
1 (ix) Approval of a referendum shall be by majority
2 vote of those voting in the school district involved.
3 (x) The election officials shall certify the results
4 of the referendum to the governing body.
5 (e) School districts located in more than one county.--
6 (1) In the event a school district is located in more
7 than one county, petitions under this section shall be filed
8 with the election officials of the county wherein the
9 administrative offices of the school district are located.
10 (2) The election officials receiving a petition shall be
11 responsible for all administrative functions in reviewing and
12 certifying the validity of the petition and for making all
13 necessary communications with the school district.
14 (3) If the election officials of the county receiving
15 the petition certify that it is sufficient under this subpart
16 and determine that a question should be placed upon the
17 ballot, such decision shall be communicated to election
18 officials in any other county in which the school district is
19 also located. Election officials in the other county or
20 counties shall cooperate with election officials of the
21 county receiving the petition to insure that an identical
22 question is placed on the ballot at the same election
23 throughout the entire school district.
24 (4) Election officials from each county involved shall
25 independently certify the results from their county to the
26 governing body.
27 § 8704. Public referendum requirements for increasing property
28 taxes previously reduced.
29 (a) General rule.--[Except as provided in subsections (c)
30 and (d), a] A governing body that elects to levy an earned
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1 income and net profits tax under this chapter pursuant to 2 section 8703(a) (relating to adoption of referendum) shall not 3 increase the rate of its tax on real property without 4 advertising its intention to adopt a resolution increasing the 5 rate of its tax on real property once a week for three weeks 6 pursuant to the notice and public hearing requirements in 7 section 4 of the Local Tax Enabling Act and, except as provided 8 in subsections (c) and (d), first obtaining the approval of the 9 electorate of the affected school district in a referendum [at 10 the primary election immediately preceding the fiscal year of 11 the proposed tax increase] if required under subsection (a.1). 12 (a.1) Referendum.--The electors of a school district may 13 petition the governing body of the school district to require 14 approval of the electorate of the affected school district in a 15 public referendum for any increase in the rate of real property 16 tax beyond the rate provided for in subsections (c) and (d). A 17 school district proposing such an increase shall, upon first 18 advertising its intention to adopt a resolution increasing the 19 rate of its tax on real property, prepare and hold open a 20 petition to require a referendum in a designated office of the 21 school district to be available for signing by qualified 22 electors of the school district. The petition shall be available 23 for signing during the normal business hours of the school 24 district for a period of two weeks. In addition, the petition 25 shall be made available for signing at least three additional 26 hours on each of the two evenings prior to the signing deadline. 27 Notice of the petition, the date and times for signing and its 28 location shall be included in the advertisement required in 29 subsection (a). If the petition is signed by electors comprising 30 5% of the number of electors voting for the office of Governor 20020H2659B3908 - 10 -
1 in the last gubernatorial election in the school district, the 2 governing body of the school district shall not be permitted to 3 increase the rate of its tax on real property, except as 4 provided in subsections (c) and (d), without first obtaining the 5 approval of the electorate of the affected school district in a 6 referendum. 7 (b) Disapproval.--Whenever the electorate fails to approve 8 the proposed referendum question to increase the rate of tax on 9 real property under subsection [(a)] (a.1), the governing body 10 shall be [limited to the rate of tax in effect prior to the 11 referendum.] compelled to repeal the resolution increasing the 12 rate of tax on real property for the next fiscal year. Nothing 13 in this subsection shall be construed as prohibiting the 14 governing body from increasing the rate of tax on real property 15 pursuant to subsections (c) and (d). 16 (c) Exception to general rule.--The provisions of subsection 17 [(a)] (a.1) shall not apply to an increase in the rate of the 18 real property tax that does not cause [local tax revenue, 19 excluding real property taxes to be levied on newly constructed 20 buildings or structures or on increased valuations based on new 21 improvements made to existing houses, to increase by more than 22 the percentage increase in the Statewide average weekly wage in 23 the preceding year. Prior to any increase under this subsection, 24 the governing body must certify to the court of common pleas in 25 the judicial district in which the governing body is located the 26 estimates of total local tax revenues used in the calculation 27 under this subsection.] per-student school district revenue to 28 increase by more than the percentage increase in the Statewide 29 average weekly wage in the preceding year. For the purposes of 30 this paragraph, per-student school district revenue shall be 20020H2659B3908 - 11 -
1 determined by adding together local tax revenues, Federal and 2 State funding and dividing the total by the average daily 3 membership of a school district as defined by the act of March 4 10, 1949 (P.L.30, No.14), known as the Public School Code of 5 1949. Prior to any increase under this subsection, the governing 6 body must certify to the court of common pleas in the judicial 7 district in which the governing body is located the estimates of 8 total local tax revenues, Federal and State funding and student 9 enrollment used in the calculations under this subsection. The 10 court may, on its own motion or on petition of a person having 11 standing under subsection (f), revise the estimates certified by 12 the governing body and reduce the allowable increase in the rate 13 of the real property tax under this subsection. 14 (d) Referendum exceptions.--The provisions of subsection 15 [(a)] (a.1) shall not apply to increases in the rate of tax on 16 real property in this subsection only if the exception to the 17 general rule under subsection (c) has been utilized, if 18 applicable, to the maximum amount allowed: 19 (1) To respond to or recover from an emergency or 20 disaster declared pursuant to 35 Pa.C.S. § 7301 (relating to 21 general authority of Governor) or 75 Pa.C.S. § 6108 (relating 22 to power of Governor during emergency), only for the duration 23 of the emergency or disaster and for the costs of the 24 recovery from the emergency or disaster. 25 (2) To implement a court order or an administrative 26 order from a Federal or State agency that requires the 27 expenditure of funds that exceed current available revenues. 28 The rate increase shall be rescinded following fulfillment of 29 the court order or administrative order. 30 (3) To pay interest and principal on any indebtedness 20020H2659B3908 - 12 -
1 incurred under Subpart B (relating to indebtedness and 2 borrowing). However, in no case may a school district incur 3 additional debt under this paragraph, except for the 4 refinancing of existing debt, including the payment of costs 5 and expenses related to such refinancing and the 6 establishment or funding of appropriate debt service 7 reserves. The increase shall be rescinded following the final 8 payment of interest and principal. The exception provided 9 under this paragraph shall not be used to avoid referendum 10 requirements to pay for costs which could not be financed by 11 the issuance of debt under Subpart B. 12 (4) To respond to conditions that pose an immediate 13 threat of serious physical harm or injury to the students, 14 staff or residents of the school district until the 15 circumstances causing the threat have been fully resolved. 16 (5) Special purpose tax levies approved by the 17 electorate. 18 (6) [To maintain per-student local tax revenue in the 19 school district at an amount not exceeding the amount of per- 20 student local tax revenue at the level of the preceding year, 21 adjusted for the percentage increase in the Statewide average 22 weekly wage. This paragraph shall apply only if the 23 percentage growth in student enrollment in the school 24 district between the current fiscal year and the third fiscal 25 year immediately preceding the current fiscal year exceeds 26 10%. For the purposes of this paragraph, student enrollment 27 shall be measured by average daily membership as defined by 28 the act of March 10, 1949 (P.L.30, No.14), known as the 29 Public School Code of 1949. For the purposes of this 30 paragraph, per-student local tax revenue shall be determined 20020H2659B3908 - 13 -
1 by dividing local tax revenue by average daily membership.] 2 To implement a statutory or regulatory requirement imposed by 3 the Federal or State government and for the first time 4 affecting the school district. 5 (e) Court action.--Prior to the imposition of the tax 6 increase under subsection (d)(1), (2), (4) or (6), approval is 7 required by the court of common pleas in the judicial district 8 in which the governing body is located. The governing body shall 9 publish in a newspaper of general circulation a notice of its 10 intent to file an action under this subsection at least one week 11 prior to the filing of the petition. The governing body shall 12 also publish in a newspaper of general circulation notice, as 13 soon as possible following notification from the court that a 14 hearing has been scheduled, stating the date, time and place of 15 the hearing on the petition. The following shall apply to any 16 proceedings instituted under this subsection: 17 (1) The governing body must prove by clear and 18 convincing evidence the necessity for the tax increase. 19 (2) The governing body must prove by clear and 20 convincing evidence that there are no assets or other 21 feasible alternatives available to the school district. 22 (3) The court shall determine the appropriate duration 23 of the increase and may retain continuing jurisdiction. The 24 court may, on its own motion or on petition of an interested 25 party, revoke approval for or order rescission of a tax 26 increase. 27 (f) Standing.--A person shall have standing as a party to a 28 proceeding under this section as long as the person resides 29 within or pays real property taxes to the taxing jurisdiction of 30 the governing body instituting the action. 20020H2659B3908 - 14 -
1 § 8705. Local tax study commission. 2 (a) Appointment.--A governing body may appoint a local tax 3 study commission. 4 (b) Membership.--The local tax study commission shall 5 consist of at least five but not more than 11 members who are 6 resident individuals or taxpayers of the school district and 7 shall reflect the socioeconomic, age and occupational diversity 8 of the school district to the extent possible. 9 (1) Except for paragraph (2), no member shall be an 10 official or employee, or a relative thereof, of the school 11 district. 12 (2) One member may be a member of the governing body. 13 (c) Staff and expenses.--The governing body shall provide 14 necessary and reasonable support staff and shall reimburse the 15 members of the local tax study commission for necessary and 16 reasonable expenses in the discharge of their duties. 17 (d) Contents of study.--The local tax study commission shall 18 study the existing taxes levied, assessed and collected by the 19 school district and their effect. The local tax study commission 20 shall determine how the tax policies of the school district 21 could be improved by the levy, assessment and collection of the 22 taxes authorized pursuant to this chapter. The study shall 23 include, but not be limited to, consideration of all of the 24 following: 25 (1) Historic and present rates of and revenue from taxes 26 currently levied, assessed and collected. 27 (2) The age, income, employment and property use 28 characteristics of the existing tax base. 29 (3) Projected revenues of taxes currently levied, 30 assessed and collected, including taxes authorized and taxes 20020H2659B3908 - 15 -
1 not levied under this chapter. 2 (e) Recommendation.--[Within 90 days of its appointment, the 3 local tax study commission shall] The governing body shall 4 establish a deadline for the local tax study commission to 5 conduct its study and make a nonbinding recommendation to the 6 governing body regarding the imposition of an earned income and 7 net profits tax to be levied, assessed and collected commencing 8 the next fiscal year. The deadline for the recommendation shall 9 be no later than 150 days before the next municipal election. 10 Except as provided in subsection (f), if the governing body 11 appoints a commission, the earned income and net profits tax 12 authorized under this chapter may not be levied, assessed or 13 collected until receipt of the recommendation. No later than 90 14 days prior to the next municipal election occurring at least 150 15 days after the submission of the recommendation, the governing 16 body shall accept or reject the recommendation of the local tax 17 study commission or adopt an alternative proposal authorized 18 under this chapter. 19 (f) Failure to issue a recommendation.--If the local tax 20 study commission fails to make a recommendation under subsection 21 (e), the governing body may adopt a proposal authorized under 22 this chapter. 23 (g) Public distribution of report.--The local tax study 24 commission shall publish a final report of its findings and 25 recommendation and deliver the report to the governing body. The 26 governing body shall supply copies to any interested persons 27 upon request. 28 (h) Materials.--All records of the local tax study 29 commission shall be available for public inspection during the 30 regular business hours of the school district. 20020H2659B3908 - 16 -
1 (i) Definitions.--As used in this section, the term 2 "relative" means a spouse, parent, sibling, child, stepchild, or 3 the spouse of the parent, sibling, child or stepchild. 4 Section 2. Title 53 is amended by adding a section to read: 5 § 8707. Continuity of homestead exclusion. 6 A homestead exclusion created under this chapter shall 7 continue in full force and effect and not be diminished unless a 8 governing body elects to end participation in accordance with 9 section 8703 (relating to adoption of referendum) and obtains 10 the approval of the electorate of the affected school district. 11 Section 3. Section 8717 of Title 53 is amended to read: 12 § 8717. Disposition of earned income and net profits tax 13 revenue. 14 The disposition of revenue from an earned income and net 15 profits tax or an increase in the rate of an earned income and 16 net profits tax imposed by school districts under the authority 17 of this chapter shall occur in the following manner: 18 (1) For the fiscal year of implementation of a newly 19 imposed income tax, all earned income and net profits tax 20 revenue received by a school district shall be used first to 21 offset any lost revenue to the school district from the taxes 22 prohibited under section 8701(b) (relating to general tax 23 authorization) in an amount equal to the revenue collected 24 from the prohibited taxes in section 8701(b) in the preceding 25 fiscal year; second, to provide for an increase in budgeted 26 revenues over the preceding fiscal year in accordance with 27 the amount specified in the referendum question approved by 28 the voters under section 8703 (relating to adoption of 29 referendum); [and] third, to reduce the school district real 30 property tax [in the following order: 20020H2659B3908 - 17 -
1 (i) By means of an exclusion for homestead property 2 pursuant to section 8583 (relating to exclusion for 3 homestead property). 4 (ii) By means of a reduction in the millage rate 5 after the limit on the exclusion for homestead property 6 has been reached under section 8586 (relating to 7 limitations).] by means of an exclusion for homestead 8 property pursuant to section 8583; and fourth, any or a 9 combination of the following, at the discretion of the 10 board of school directors: 11 (i) to reduce the school district real property tax 12 by means of a reduction in the millage rate; 13 (ii) to reduce the outstanding debt of the school 14 district; or 15 (iii) to create a designated budgetary reserve to 16 provide funds to sustain the level of the homestead 17 exclusion in subsequent years as additional parcels are 18 approved for the homestead exclusion. 19 (2) For the fiscal year of implementation of an increase 20 in the rate of the existing earned income and net profits tax 21 imposed under this chapter, all revenue received by a school 22 district directly attributable to the increased rate shall be 23 used to reduce the school district real property tax in the 24 following order: 25 (i) By means of an exclusion for homestead property 26 pursuant to section 8583. 27 (ii) By means of a reduction in the millage rate 28 after the limit on the exclusion for homestead property 29 has been reached under section 8586. 30 Section 4. This act shall take effect in 60 days. H2L53BIL/20020H2659B3908 - 18 -