SB 394 — A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, providing for expiration of authority to levy or collect real property taxes on homesteads and farmsteads.

PRIOR PASSAGE - NONE
                                                        PRINTER'S NO.   340

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 394
                                               Session of
                                                 2025

     INTRODUCED BY BOSCOLA AND KEEFER, MARCH 6, 2025

     REFERRED TO FINANCE, MARCH 6, 2025


                              A JOINT RESOLUTION
 1   Proposing an amendment to the Constitution of the Commonwealth
 2      of Pennsylvania, providing for expiration of authority to
 3      levy or collect real property taxes on homesteads and
 4      farmsteads.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby resolves as follows:
 7      Section 1.    The following amendment to the Constitution of
 8   Pennsylvania is proposed in accordance with Article XI:
 9      That Article VIII be amended by adding a section to read:
10   § 18.    Expiration of authority to levy or collect real property
11                taxes on homesteads and farmsteads.
12      (a)    No school district may levy a real property tax on a
13   homestead or farmstead after June 30, 2030. This subsection
14   shall not prohibit a school district from collecting a tax
15   levied prior to June 30, 2030.
16      (b)    The Legislature shall, by general law, provide annually
17   each school district with maintenance and support in an amount
18   at least equal to the real property tax collected by the school
19   district on homesteads and farmsteads during the fiscal year
 1   ending June 30, 2030, less the annual debt service legally
 2   obligated to be paid by the school district during the fiscal
 3   year ending June 30, 2030. The maintenance and support of school
 4   districts may include, but need not be limited to:
 5      (1)     A State tax on each separate sale at retail of tangible
 6   personal property or services in this Commonwealth.
 7      (2)     A State tax on the receipt of income by every resident
 8   individual, estate or trust.
 9      (3)     A local tax on the receipt of income by every resident
10   individual, estate or trust.
11      (4)     A local tax on earned income and net profits.
12      (c)     Under no circumstances may the General Assembly provide,
13   by general, local or special law, for a real property tax on a
14   homestead or farmstead.
15      (d)     Except for taxes imposed under subsection (b)(3) and
16   (4), all proceeds from other taxes imposed under subsection (b),
17   shall be deposited into a separate fund in the State Treasury,
18   to be known as the Stabilization of Education Fund, and shall be
19   used for the purpose of the maintenance and support of school
20   districts required under subsection (a). The money in the fund
21   may not be diverted by transfer or otherwise to any other
22   purpose.
23      Section 2.     The following procedure applies to the proposed
24   constitutional amendment in this joint resolution:
25            (1)   Upon the first passage by the General Assembly of
26      the amendment, the Secretary of the Commonwealth shall
27      proceed immediately to comply with the advertising
28      requirements of section 1 of Article XI of the Constitution
29      of Pennsylvania.
30            (2)   Upon the second passage by the General Assembly of

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1     the amendment, the Secretary of the Commonwealth shall
2     proceed immediately to comply with the advertising
3     requirements of section 1 of Article XI of the Constitution
4     of Pennsylvania. The Secretary of the Commonwealth shall
5     submit the amendment to the qualified electors of this
6     Commonwealth at the first general or municipal election which
7     meets the requirements of section 1 of Article XI of the
8     Constitution of Pennsylvania.




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