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Articles
PANO Updates
Articles
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The Pittsburgh Promise's first lesson, Pittsburgh
Post-Gazette, By Brian O'Neill, 12/30/07, Page 2.
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UPMC announces $618 million profit, fends off critics,
Pittsburgh Tribune-Review, Rick Stouffer, Aug 24, 2007,
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$618M is a pretty tidy 'non'profit for UPMC, Pittsburgh
Tribune-Review, Eric Heyl, Aug 24, 2007,
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IRS Releases Hospitals and Community Benefit - Interim
Report
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"No relief: Shifting state money only bails out rich
nonprofits”, Pittsburgh Post-Gazette, editorial, 11/19/07 .
- “Allegheny
County may ask nonprofits to fill gap”, Pittsburgh
Tribune-Review, 11/20/2007, by Mike Wereschagin
- ”Ferlo
calls for end to one of city's state overseers”,
Pittsburgh Post-Gazette 11/08/2007, by Rich Lord
- “Pennswood
Village granted tax exemption”, Bucks County Courier
Times, 11/14/07 by Rachel Canelli. (But will pay nearly
$500,000 in PILOTS until 2020.)
PANO Updates
3/7/08 Public Hearing:
The PA House Local Government Committee will hold a public
hearing on Friday, March 7, 2008, 10:00 am in Pittsburgh to
discuss House Bill 2018 to create the Tax-exempt Property
Municipal Assistance Fund (the State-paid PILOTs bill) that
would create an annual revenue sharing program for distressed
municipalities with high levels of tax-exempt property. The
hearing will be held at the City-Council Building, 5th Floor,
City Council Chambers, 414 Grant Street, Pittsburgh, PA.
Testimony will be heard from Scott Kunka, of the City of
Pittsburgh, Curtis Davis of the City of Johnstown, Rich Herman
and Nancy Freenock of Clarion Borough, Robert Lucas of City of
Sharon, James Nowalk of the Pennsylvania State Mayors'
Association; and from the Committee, Rep. Robert Freeman
(Chair) and Rep. Don Walko.
3/7/08 The Pittsburgh
Public Service Fund is a group of over a hundred Pittsburgh
nonprofits who for the past three years, have been paying
$13.57 million in voluntary contributions in-lieu-of property
taxes to assist the City of Pittsburgh with its fiscal crisis.
Last month’s final payment of that three year agreement
exceeded the Fund’s promise by $411,000, bringing the total
paid to $13.98 million in PILOTs (payment in-lieu-of taxes).
See Tax-exempt groups exceed 3-year pledge to city, offer
more, Pittsburgh Post Gazette, March 1, 2008, by Rich Lord.
http://www.post-gazette.com/pg/08061/861722-53.stm.
Currently, the Public Service Fund is reconstituting its
board and will resume negotiations on a new voluntary PILOTs
agreement with the City. With UPMC contributing $10 million
annually to the Pittsburgh Promise scholarship program, some
are concerned that smaller charities will be asked to make-up
the difference. According to the Pittsburgh Post-Gazette, “The
alternative is state legislation that sets a formula for real
payments in lieu of taxes. While Pennsylvania cities bogged
down by the inability to tax wealthy "nonprofits" would love
to go there, we suspect the nonprofits would not.” Measure of
help: The city deserves more support from tax-exempts,
Pittsburgh Post-Gazette online Opinion, March 6, 2008.
http://www.post-gazette.com/pg/08066/862815-192.stm.
2/20/08
PANO testifies
at State Legislative Hearing in support of State-Paid PILOTs
bill. This bill would enable to State to compensate hundreds
of distressed municipalities that have greater than 17% tax
exempt property within their borders. David Ross, PANO Public
Policy Officer, testified that this bill would encourage
cooperation between charities and their local communities by
relieving tensions over PILOT (payments in-lieu-of taxes)
agreements.
2/19/08 House Committee to
Hold Public Hearings on State–Paid PILOTS Bill. On
February 19 and 20, the House Local Government Committee will
hold hearings on legislation to establish the Tax Exempt
Property Municipal Assistance Fund. Representative Freeman’s
bill (HB2018) would provide for an annual revenue sharing
program for municipalities that have high percentages of
tax–exempt property.
11/14/07 Freeman Bill
Introduced; State Would Cover Costs for Tax-Exempt Property.
On November 14, 2007, Rep. Freeman introduced
HB2018 to compensate municipalities with high
concentrations of tax exempt properties. The Freeman bill
would tap into the State’s $240 million annual revenue stream
from the 1936 Johnstown flood liquor tax. This money would
compensate municipalities with at least 17% of the land not on
the tax rolls for as much as $36 million a year. For the bill
history go to
http://www.legis.state.pa.us/WU01/LI/BI/BH/2007/0/HB2018.HTM.
11/14/07 Rep. Freeman
(D-136) bill offers a remedy to Act 47 municipalities. HB2018
(PN2846) provides $240 million from old State liquor tax to
compensate any municipality with 17 percent or more of its total
assessed property value exempt from property taxes. Bill text
posted at
http://www.legis.state.pa.us/WU01/LI/BI/BH/2007/0/HB2018.HTM.
11/13/07
Press release
& analysis of HB2018
11/12/07
Rep. Freeman- (D-Northampton, Easton)- plans to unveil
legislation he will be introducing next week (Nov 13, 2007)
that would provide funding to municipalities with high levels
of tax-exempt property.
http://www.pahouse.com/PR/136110907.asp.
Rep. Curry-(H.R.459) -
Resolution directing the Legislative Budget and Finance
Committee to study the fiscal impact of tax-exempt properties
on the finances of municipalities and school districts; to
review the policies of other states in addressing the burden
of limited tax bases as a result of tax-exempt properties; and
to make recommendations on ways to assist tax authorities with
a high concentration of tax-exempt properties. Introduced in
the House on October 18, 2007 and referred to House FINANCE
Committee.
11/7/07 Senate to Hold Act
47 Hearing in Pittsburgh Nov 8 On Fiscal health of Distressed
Cities in PA. On Thursday, November 8, 2007 at 9:00 am,
the Pennsylvania Senate Urban Affairs & Housing Committee will
hold a public hearing to examine Pennsylvania Act 47 of 1987
and the fiscal health of distressed cities in Pennsylvania.
Hearing will begin at 9am in the City Council Chambers of the
City-County Bldg, Pittsburgh, PA.
State Senator John Pippy (R-37 Allegheny and Washington
Counties), chairman of the Senate Urban Affairs and Housing
Committee is hosting a series of public hearings on the fiscal
health of Pennsylvania's cities and Act 47 of 1987, the
Municipalities Financial Recovery Act and the fiscal health of
distressed cities in Pennsylvania. Act 47 is the 20-year-old
state law designed to help stabilize the finances of
Pennsylvania’s distressed cities. These hearings are designed
to identify causes, and offer solutions. While the Committee
has not targeted charities tax exemptions, the Committee will
address the role of nonprofit tax exemptions a it related to a
diminished urban property tax base.
The Brookings Institution, the Pennsylvania Economy League
and Penn State University recently issued a joint report
citing the shortcomings of Act 47 and the need to examine
challenges faced by Pennsylvania's cities. The Committee’s
first public hearing was held in Harrisburg on May 23, 2007.
For the Senate Urban Affairs & Housing Committee go to
http://www.senatorpippy.com/urbanaffairs.htm. For
transcripts of the September. 20, 2007 Allentown hearing go to
http://www.senatorpippy.com/UACnews/9-20-2007-Allentown.htm.
8/30/07 PANO Testifies at
State Senate Hearing on Act 55, Charities Contribution. On
August 30, 2007, Pittsburgh attorney and former PANO Board
Member, Jack Owen, testified on behalf of PANO before the
Pennsylvania Senate Finance Committee public hearing on Act 55
of 1997, Pennsylvania's Institutions of Purely Public Charity
Act. The Pittsburgh hearing is part of a statewide
fact-finding tour to review the impact and adequacy of Act 55
after 10 years of the law being in effect relatively
unchanged. Jack Owen testified that Act 55 helped to build
Pennsylvania’s dynamic community of 61,000 charities employing
over 650,000 full-time workers (1 of every 9 in Pennsylvania’s
workforce). The Act was designed to reduce costly litigation
and provide uniform and clear rules by which charities could
receive property and sales tax exemptions. It is PANO’s
position that Act 55 works, continues to help charities
promote the quality of life in our communities. For a copy of
the August 30, 2007 Pittsburgh hearing Agenda and the
testimony, go to
http://www.senatorbrowne.com/finance/083007/083007-agenda.htm.
For
the March 14, 2007, Harrisburg public hearing Agenda and
testimony, go to
http://www.senatorbrowne.com/finance/031407/031407-agenda.htm.
6/21/06 House Passes Property Tax Reform Bill; Senate Approved; goes to Governor for Signature. June 14- House adopts [Special Session HB 39] Conference Committee Report reducing property taxes for low-income senior citizen homeowners. The Senate signed the Report on June 19. The bill moves to the Governor for signature. The Governor has stated publicly that he intends to sign it. Pennsylvanian’s can expect sharper reductions in their property tax through a shift to local earned income and personal income tax increases.
While proponents argue that the bill is a significant step toward real property tax reform in PA, opponents argue that the bill is misses a significant opportunity to achieve real tax reform. For a copy of the bill go to http://www.legis.state.pa.us/WU01/LI/BI/BT/2005/1/HB0039P0093.HTM.
3/24/06 Local Governments seeking PILOTS from Charities. Last week, Erie City Council Approved a proposed 3% Amusement tax on Admission fees on all events including Nonprofit Arts events. Museums and symphonies will face decreased revenues, increased operating costs, and decreased attendance.
Scranton city Council President Gatelli pushes for nonprofits to make payments in leis of taxes. In 2005, Scranton collected $166,200 from non-profits, but most of it came from the University of Scranton. While, nonprofits are property tax exempt in PA, some municipalities have looked to nonprofits for voluntary payments to the communities where they are based. Unfortunately, this can adversely effect charities' ability to provide programming. Scranton Council president Gatelli said that she intends to ask every nonprofit in the city to make some voluntary payments.
The City of Pittsburgh has been requiring payments in lieu of taxes from nonprofits because they have received distressed city status. The City of Pittsburgh is finally in the black again, but is still requiring PILOTS.
PANO will continue to monitor these issues and offer updates. If your community is considering PILOTS, please contact David Ross at PANO at david@pano.org. |