HB 465 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in school finances, providing for commercial property tax redistribution.

PRINTER'S NO.   448

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 465
                                               Session of
                                                 2025

     INTRODUCED BY FRIEL, SANCHEZ, HILL-EVANS, GIRAL, BURGOS, GREEN
        AND MADDEN, FEBRUARY 4, 2025

     REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 2025


                                    AN ACT
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," in school finances, providing for
 6      commercial property tax redistribution.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
10   as the Public School Code of 1949, is amended by adding a
11   section to read:
12      Section 618.    Commercial Property Tax Redistribution.--(a)
13   Each intermediate unit shall establish a commercial property tax
14   group for the purpose of collecting a portion of commercial
15   property tax for redistribution to school districts served by
16   the intermediate unit.
17      (b)   Each school district shall select one representative to
18   serve on the commercial property tax group established by the
19   intermediate unit that serves the school district.
20      (c)   Each school district shall provide the following to its
 1   respective commercial property tax group:
 2      (1)   In the first tax year beginning after the effective date
 3   of this paragraph, ten per centum of the property taxes that the
 4   school district collected for that year on commercial properties
 5   located in the school district with a minimum assessment value
 6   of ten million dollars ($10,000,000).
 7      (2)   In the second tax year beginning after the effective
 8   date of this paragraph, twenty per centum of the property taxes
 9   that the school district collected for that year on commercial
10   properties located in the school district with a minimum
11   assessment value of ten million dollars ($10,000,000).
12      (3)   In the third tax year beginning after the effective date
13   of this paragraph, thirty per centum of the property taxes that
14   the school district collected for that year on commercial
15   properties located in the school district with a minimum
16   assessment value of ten million dollars ($10,000,000).
17      (4)   In the fourth tax year beginning after the effective
18   date of this paragraph, forty per centum of the property taxes
19   that the school district collected for that year on commercial
20   properties located in the school district with a minimum
21   assessment value of ten million dollars ($10,000,000).
22      (5)   In the fifth tax year beginning after the effective date
23   of this paragraph, fifty per centum of the property taxes that
24   the school district collected for that year on commercial
25   properties located in the school district with a minimum
26   assessment value of ten million dollars ($10,000,000).
27      (6)   In the sixth tax year beginning after the effective date
28   of this paragraph, sixty per centum of the property taxes that
29   the school district collected for that year on commercial
30   properties located in the school district with a minimum

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 1   assessment value of ten million dollars ($10,000,000).
 2      (7)   In the seventh tax year beginning after the effective
 3   date of this paragraph and each tax year thereafter, seventy per
 4   centum of the property taxes that the school district collected
 5   for that year on commercial properties located in the school
 6   district with a minimum assessment value of ten million dollars
 7   ($10,000,000).
 8      (d)   Each commercial property tax group under this section
 9   shall establish a revenue account to deposit commercial property
10   taxes from each school district.
11      (e)   Each commercial property tax group under this section
12   shall distribute the revenue to each school district served by
13   the intermediate unit proportionately based on the school
14   district's average daily membership in comparison to the total
15   average daily membership for all school districts served by the
16   intermediate unit.
17      (f)   As used in this section, the following words and phrases
18   shall have the meanings given to them in this subsection unless
19   the context clearly indicates otherwise:
20      "Average daily membership."     As defined in section 2501(3).
21      "Commercial property tax."    Real property taxes collected on
22   commercial real estate.
23      "Commercial real estate."    As follows:
24      (1)   Real estate that is zoned for a use other than
25   residential or agricultural purposes.
26      (2)   For a property that is zoned for mixed-use that includes
27   residential purposes, the term includes the portion of the real
28   property not designated for residential use based on the square
29   footage of residential space in relation to the total square
30   footage of the real property.

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1      (3)   The term does not include single-family residential
2   units or building lots such as condominiums, townhouses or homes
3   in a subdivision when sold, leased or otherwise conveyed on a
4   unit-by-unit basis even though the units may be part of a larger
5   building or parcel of real estate.
6      Section 2.   This act shall take effect in 60 days.




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