Act 72 Homestead Tax Relief Part 2 of 3

1 ELECTORATE, THE SCHOOL DISTRICT SHALL BE DEEMED TO HAVE
2 SATISFIED THE REQUIREMENTS OF SECTION 331. IF A REFERENDUM
3 QUESTION UNDER THIS SUBSECTION IS NOT APPROVED BY THE
4 ELECTORATE, ALL OF THE FOLLOWING APPLY:
5 (1) THE BOARD OF SCHOOL DIRECTORS SHALL IMPOSE THE
6 EARNED INCOME AND NET PROFITS TAX REQUIRED UNDER SECTION 331
7 ON RESIDENTS OF THE SCHOOL DISTRICT.
8 (2) THE TAX UNDER PARAGRAPH (1) SHALL TAKE EFFECT
9 BEGINNING ON THE FIRST DAY OF THE FISCAL YEAR IN WHICH THE
10 SCHOOL DISTRICT RECEIVES A PAYMENT UNDER SECTION 505(B).
11 (E) MUNICIPAL ELECTION OF 2007.--IN ACCORDANCE WITH
12 SUBSECTIONS (B) AND (C)(1), A BOARD OF SCHOOL DIRECTORS SHALL
13 PROPOSE A REFERENDUM QUESTION AT THE MUNICIPAL ELECTION OF 2007.
14 IF A BOARD OF SCHOOL DIRECTORS FAILS TO PROPOSE A REFERENDUM
15 QUESTION AT THE MUNICIPAL ELECTION OF 2007, THE SCHOOL DISTRICT
16 SHALL BE INELIGIBLE TO RECEIVE A PROPERTY TAX REDUCTION
17 ALLOCATION UNDER SECTION 505 UNTIL A REFERENDUM QUESTION
18 PURSUANT TO SUBSECTION (C)(1) IS PROPOSED IN A SUBSEQUENT
19 GENERAL OR MUNICIPAL ELECTION.
20 (F) PUBLIC REFERENDUM REQUIREMENTS TO END PARTICIPATION
21 UNDER THIS CHAPTER.--SUBJECT TO THE NOTICE AND PUBLIC HEARING
22 REQUIREMENTS IN SECTION 4 OF THE LOCAL TAX ENABLING ACT AND
23 AFTER A PERIOD OF AT LEAST FOUR FULL FISCAL YEARS OF ANY TAX
24 AUTHORIZED UNDER SECTION 321 BEING LEVIED, A BOARD OF SCHOOL
25 DIRECTORS MAY SEEK TO END PARTICIPATION UNDER THIS CHAPTER BY
26 OBTAINING THE APPROVAL OF THE ELECTORS OF THE SCHOOL DISTRICT IN
27 A PUBLIC REFERENDUM AT A MUNICIPAL ELECTION.
28 (G) EFFECT ON CERTAIN SCHOOL DISTRICTS.--
29 THIS SECTION SHALL NOT APPLY TO:
30 (1) A SCHOOL DISTRICT OF THE FIRST CLASS.
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1 (2) A SCHOOL DISTRICT WHICH REACHES THE MAXIMUM
2 HOMESTEAD EXCLUSION ALLOWED UNDER 53 PA.C.S. § 8586 WHEN
3 COMBINING THE TAX IMPOSED UNDER SECTION 331, THE PROPERTY TAX
4 REDUCTION ALLOCATION RECEIVED UNDER SECTION 505, FUNDS
5 RECEIVED UNDER SECTION 324(B) AND ANY FUNDS CURRENTLY
6 COLLECTED FOR THE PURPOSE OF PROVIDING HOMESTEAD EXCLUSIONS.
7 (3) A SCHOOL DISTRICT THAT REACHES 50% OF THE MAXIMUM
8 HOMESTEAD EXCLUSION ALLOWED UNDER 53 PA.C.S. § 8586 WHEN
9 COMBINING THE TAX IMPOSED UNDER SECTION 331, THE PROPERTY TAX
10 REDUCTION ALLOCATION RECEIVED UNDER SECTION 505, FUNDS
11 RECEIVED UNDER SECTION 324(B) AND ANY FUNDS CURRENTLY
12 COLLECTED FOR THE PURPOSE OF PROVIDING HOMESTEAD EXCLUSIONS.
13 NOTHING IN THIS PARAGRAPH SHALL PROHIBIT A SCHOOL DISTRICT
14 FROM SEEKING VOTER APPROVAL TO PROVIDE FURTHER HOMESTEAD AND
15 FARMSTEAD EXCLUSIONS SHOULD IT ELECT TO DO SO UNDER
16 SUBSECTION (B).
17 (H) SCHOOL DISTRICTS OPERATING UNDER 53 PA.C.S. CH. 87.--
18 (1) A SCHOOL DISTRICT WHICH IS SUBJECT TO 53 PA.C.S. CH.
19 87 (RELATING TO OTHER SUBJECTS OF TAXATION) MAY ADOPT THE
20 PROVISIONS OF THIS CHAPTER PURSUANT TO THIS SUBSECTION.
21 (2) A SCHOOL DISTRICT WHICH CURRENTLY LEVIES AN EARNED
22 INCOME AND NET PROFITS TAX UNDER 53 PA.C.S. § 8703 (RELATING
23 TO ADOPTION OF REFERENDUM) SHALL, BY RESOLUTION, COMPLY WITH
24 SECTION 331 IN ORDER TO ESTABLISH ELIGIBILITY TO RECEIVE A
25 PROPERTY TAX REDUCTION ALLOCATION UNDER CHAPTER 5.
26 (3) A SCHOOL DISTRICT UNDER THIS SUBSECTION SHALL
27 CONVERT ITS EARNED INCOME AND NET PROFITS TAX AUTHORIZED
28 UNDER 53 PA.C.S. § 8703 TO AN EARNED INCOME AND NET PROFITS
29 TAX AUTHORIZED UNDER THIS SUBSECTION AT THE SAME RATE AS THE
30 TAX WAS LEVIED UNDER SECTION 53 PA.C.S. 8703 ON THE DATE OF
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1 CONVERSION. THE TAX AUTHORIZED UNDER THIS SUBSECTION SHALL BE
2 SUBJECT TO THE PROVISIONS OF SECTIONS 323, 324, 325 AND 326.
3 (4) A SCHOOL DISTRICT UNDER THIS SUBSECTION SHALL
4 COMBINE ALL REVENUE GENERATED FOR FUNDING HOMESTEAD AND
5 FARMSTEAD EXCLUSIONS UNDER 53 PA.C.S. § 8703 WITH ANY REVENUE
6 COLLECTED FOR THE PURPOSES OF FUNDING HOMESTEAD AND FARMSTEAD
7 EXCLUSIONS UNDER THIS CHAPTER.
8 (5) UNLESS SUBSECTION (G)(3) APPLIES, A SCHOOL DISTRICT
9 UNDER THIS SUBSECTION SHALL BE REQUIRED TO PLACE A REFERENDUM
10 QUESTION ON THE BALLOT PURSUANT TO SUBSECTION (E). WHEN
11 CALCULATING THE PROPOSED RATE OF EARNED INCOME AND NET
12 PROFITS TAX OR PERSONAL INCOME TAX PURSUANT TO SUBSECTION
13 (C), THE SCHOOL DISTRICT SHALL INCLUDE ANY REVENUE COLLECTED
14 FOR THE PURPOSES OF HOMESTEAD AND FARMSTEAD EXCLUSIONS.
15 (6) A SCHOOL DISTRICT TAKING ACTION UNDER PARAGRAPH (2)
16 SHALL NO LONGER IMPLEMENT ANY PROVISIONS OF 53 PA.C.S. CH.
17 87.
18 (I) ELECTION CODE PROVISIONS.--PROCEEDINGS UNDER THIS
19 SECTION SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF THE
20 PENNSYLVANIA ELECTION CODE.
21 SECTION 333. PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
22 CERTAIN TAXES.
23 (A) APPLICABILITY.--
24 (1) THIS SECTION SHALL APPLY TO A BOARD OF SCHOOL
25 DIRECTORS OF A SCHOOL DISTRICT THAT HAS TAKEN ACTION UNDER
26 SECTION 331.
27 (2) FOR SCHOOL DISTRICTS UNDER PARAGRAPH (1), THIS
28 SECTION SHALL APPLY TO FISCAL YEARS BEGINNING WITH THE 2006-
29 2007 FISCAL YEAR.
30 (B) PROHIBITIONS.--EXCEPT AS SET FORTH IN SUBSECTION (F),
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1 UNLESS THERE IS COMPLIANCE WITH SUBSECTION (C), A BOARD OF
2 SCHOOL DIRECTORS MAY NOT DO ANY OF THE FOLLOWING:
3 (1) INCREASE THE RATE OF A TAX LEVIED FOR THE SUPPORT OF
4 THE PUBLIC SCHOOLS BY MORE THAN THE INDEX. FOR PURPOSES OF
5 COMPLIANCE WITH THIS PARAGRAPH, A SCHOOL DISTRICT WHICH IS
6 SITUATED IN MORE THAN ONE COUNTY AND WHICH LEVIES REAL ESTATE
7 TAXES UNDER SECTION 672.1 OF THE ACT OF MARCH 10, 1949
8 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949,
9 SHALL APPLY THE INDEX TO EACH SEPARATE RATE OF REAL ESTATE
10 TAXES LEVIED.
11 (2) LEVY A TAX FOR THE SUPPORT OF THE PUBLIC SCHOOLS
12 WHICH WAS NOT LEVIED IN THE FISCAL YEAR IN WHICH A TAX UNDER
13 SECTION 321 WAS IMPOSED.
14 (3) RAISE THE RATE OF THE EARNED INCOME AND NET PROFITS
15 TAX, IF ALREADY IMPOSED UNDER THE AUTHORITY OF THE LOCAL TAX
16 ENABLING ACT, EXCEPT AS OTHERWISE PROVIDED FOR UNDER SECTION
17 332.
18 (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
19 TO THE CONTRARY, THE ADOPTION OF A REFERENDUM UNDER SECTION
20 332 CONFERS ON THE BOARD OF SCHOOL DIRECTORS THE AUTHORITY TO
21 RAISE INCOME TAXES ONLY TO THE EXTENT CONTAINED IN THE
22 LANGUAGE OF THE REFERENDUM AND ANY FUTURE INCREASE OF AN
23 INCOME TAX TO BE USED FOR THE PURPOSE OF PROPERTY TAX
24 REDUCTION SHALL BE SUBMITTED TO THE ELECTORS OF THE SCHOOL
25 DISTRICT AT A SUBSEQUENT MUNICIPAL ELECTION PURSUANT TO THE
26 PROVISIONS OF SECTION 332(C)(2).
27 (C) REFERENDUM.--
28 (1) IN ORDER TO TAKE AN ACTION PROHIBITED UNDER
29 SUBSECTION (B)(1), AT THE ELECTION IMMEDIATELY PRECEDING THE
30 START OF THE SCHOOL DISTRICT FISCAL YEAR IN WHICH THE
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1 PROPOSED TAX INCREASE WOULD TAKE EFFECT, A REFERENDUM STATING
2 THE SPECIFIC RATE OR RATES OF THE TAX INCREASE MUST BE
3 SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT; AND A
4 MAJORITY OF THE ELECTORS VOTING ON THE QUESTION MUST APPROVE
5 THE INCREASE.
6 (2) IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(2),
7 AT THE ELECTION IMMEDIATELY PRECEDING THE START OF THE SCHOOL
8 DISTRICT FISCAL YEAR IN WHICH THE PROPOSED TAX WOULD TAKE
9 EFFECT, A REFERENDUM STATING THE PROPOSED TAX AND THE RATE AT
10 WHICH IT WILL BE LEVIED MUST BE SUBMITTED TO THE ELECTORS OF
11 THE SCHOOL DISTRICT; AND A MAJORITY OF THE ELECTORS VOTING ON
12 THE QUESTION MUST APPROVE THE TAX.
13 (3) EXCEPT AS SET FORTH IN SUBSECTIONS (I) AND (J), A
14 SCHOOL DISTRICT ACTING PURSUANT TO THIS SUBSECTION SHALL
15 SUBMIT THE REFERENDUM QUESTION REQUIRED UNDER THIS SECTION TO
16 THE ELECTION OFFICIALS OF EACH COUNTY IN WHICH IT IS SITUATE
17 NO LATER THAN 60 DAYS PRIOR TO THE ELECTION IMMEDIATELY
18 PRECEDING THE FISCAL YEAR IN WHICH THE TAX INCREASE WOULD
19 TAKE EFFECT.
20 (4) THE ELECTION OFFICIALS OF EACH COUNTY SHALL, IN
21 CONSULTATION WITH THE BOARD OF SCHOOL DIRECTORS, DRAFT A
22 NONLEGAL INTERPRETATIVE STATEMENT WHICH SHALL ACCOMPANY THE
23 REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE
24 ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
25 PENNSYLVANIA ELECTION CODE. THE NONLEGAL INTERPRETATIVE
26 STATEMENT SHALL INCLUDE INFORMATION THAT REFERENCES THE ITEMS
27 OF EXPENDITURE FOR WHICH THE TAX INCREASE IS SOUGHT AND THE
28 CONSEQUENCE OF THE REFERENDUM BEING DISAPPROVED BY THE
29 ELECTORATE.
30 (D) FAILURE TO APPROVE REFERENDUM.--
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1 (1) IF A REFERENDUM QUESTION SUBMITTED UNDER SUBSECTION
2 (C)(1) IS NOT APPROVED, THE BOARD OF SCHOOL DIRECTORS MAY
3 APPROVE AN INCREASE IN THE TAX RATE OF NOT MORE THAN THE
4 INDEX.
5 (2) IF A REFERENDUM QUESTION SUBMITTED UNDER SUBSECTION
6 (C)(2) IS NOT APPROVED, THE BOARD OF SCHOOL DIRECTORS MAY NOT
7 LEVY THE TAX.
8 (E) TAX RATE SUBMISSIONS.--A SCHOOL DISTRICT THAT HAS
9 ADOPTED A PRELIMINARY BUDGET PROPOSAL UNDER SECTION 311 THAT
10 INCLUDES AN INCREASE IN THE RATE OF ANY TAX LEVIED FOR THE
11 SUPPORT OF PUBLIC SCHOOLS SHALL SUBMIT INFORMATION ON THE
12 INCREASE TO THE DEPARTMENT ON A UNIFORM FORM PREPARED BY THE
13 DEPARTMENT. THE SCHOOL DISTRICT SHALL SUBMIT SUCH INFORMATION NO
14 LATER THAN 85 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY
15 PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S FISCAL YEAR.
16 THE DEPARTMENT SHALL COMPARE THE PROPOSED PERCENTAGE INCREASE IN
17 THE RATE OF ANY TAX WITH THE INDEX. WITHIN TEN DAYS OF THE
18 RECEIPT OF THE INFORMATION REQUIRED UNDER THIS SUBSECTION BUT NO
19 LATER THAN 75 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY
20 PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S FISCAL YEAR,
21 THE DEPARTMENT SHALL INFORM THE SCHOOL DISTRICT WHETHER THE
22 PROPOSED TAX RATE INCREASE IS LESS THAN OR EQUAL TO THE INDEX.
23 IF THE DEPARTMENT DETERMINES THAT THE PROPOSED PERCENTAGE
24 INCREASE IN THE RATE OF THE TAX EXCEEDS THE INDEX, THE
25 DEPARTMENT SHALL NOTIFY THE SCHOOL DISTRICT THAT:
26 (1) THE PROPOSED TAX INCREASE MUST BE REDUCED TO AN
27 AMOUNT LESS THAN OR EQUAL TO THE INDEX;
28 (2) THE PROPOSED TAX INCREASE MUST BE APPROVED BY THE
29 ELECTORATE UNDER SUBSECTION (C)(1); OR
30 (3) AN EXCEPTION MUST BE SOUGHT UNDER SUBSECTION (F).
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1 (F) REFERENDUM EXCEPTIONS.--A SCHOOL DISTRICT MAY, WITHOUT
2 SEEKING VOTER APPROVAL UNDER SUBSECTION (C), INCREASE THE RATE
3 OF A TAX LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS BY MORE
4 THAN THE INDEX IF ALL OF THE FOLLOWING APPLY:
5 (1) THE REVENUE RAISED BY THE ALLOWABLE INCREASE UNDER
6 THE INDEX IS INSUFFICIENT TO BALANCE THE PROPOSED BUDGET DUE
7 TO ONE OR MORE OF THE EXPENDITURES LISTED IN PARAGRAPH (2).
8 (2) THE REVENUE GENERATED BY INCREASING THE RATE OF A
9 TAX BY MORE THAN THE INDEX WILL BE USED TO PAY FOR ANY OF THE
10 FOLLOWING:
11 (I) COSTS INCURRED IN RESPONDING TO OR RECOVERING
12 FROM AN EMERGENCY OR DISASTER DECLARED PURSUANT TO 35
13 PA.C.S. § 7301 (RELATING TO GENERAL AUTHORITY OF
14 GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING TO POWER OF
15 GOVERNOR DURING EMERGENCY).
16 (II) COSTS TO IMPLEMENT A COURT ORDER OR AN
17 ADMINISTRATIVE ORDER FROM A FEDERAL OR STATE AGENCY AS
18 LONG AS THE TAX INCREASE IS RESCINDED FOLLOWING
19 FULFILLMENT OF THE COURT ORDER OR ADMINISTRATIVE ORDER.
20 (III) COSTS ASSOCIATED WITH THE FOLLOWING:
21 (A) TO PAY INTEREST AND PRINCIPAL ON ANY
22 INDEBTEDNESS INCURRED UNDER 53 PA.C.S. PT. VII SUBPT.
23 B (RELATING TO INDEBTEDNESS AND BORROWING) PRIOR TO
24 THE EFFECTIVE DATE OF THIS SECTION. IN NO CASE MAY
25 THE SCHOOL DISTRICT INCUR ADDITIONAL DEBT UNDER THIS
26 CLAUSE EXCEPT FOR THE REFINANCING OF EXPENSES RELATED
27 TO SUCH REFINANCING AND THE ESTABLISHMENT OF FUNDING
28 OF APPROPRIATE DEBT SERVICE RESERVES. AN INCREASE
29 UNDER THIS CLAUSE SHALL BE RESCINDED FOLLOWING THE
30 FINAL PAYMENT OF INTEREST AND PRINCIPAL.
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1 (B) TO PAY INTEREST AND PRINCIPAL ON ANY
2 ELECTORAL DEBT INCURRED UNDER 53 PA.C.S. PT. VII
3 SUBPT. B.
4 (C) TO PAY INTEREST AND PRINCIPAL ON
5 INDEBTEDNESS FOR UP TO 60% OF THE CONSTRUCTION COST
6 AVERAGE ON A SQUARE-FOOT BASIS IF ALL OF THE
7 FOLLOWING APPLY:
8 (I) THE INDEBTEDNESS IS FOR A SCHOOL
9 CONSTRUCTION PROJECT UNDER 22 PA. CODE CH. 21
10 (RELATING TO SCHOOL BUILDINGS).
11 (II) THE INDEBTEDNESS TO FUND APPROPRIATE
12 DEBT SERVICE RESERVES FOR THE PROJECT IS INCURRED
13 AFTER THE EFFECTIVE DATE OF THIS SECTION.
14 (III) THE INCREASE SOUGHT UNDER THIS CLAUSE
15 IS RESCINDED FOLLOWING FINAL PAYMENT OF INTEREST
16 AND PRINCIPAL.
17 (IV) THE INDEBTEDNESS IS INCURRED ONLY AFTER
18 EXISTING FUND BALANCES FOR SCHOOL CONSTRUCTION
19 AND ANY UNDESIGNATED FUND BALANCES HAVE BEEN
20 FULLY COMMITTED TO FUND THE PROJECT.
21 (V) THE INDEBTEDNESS IS FOR AN ACADEMIC
22 ELEMENTARY OR ACADEMIC SECONDARY SCHOOL BUILDING.
23 FOR PURPOSES OF THIS SUBCLAUSE, THE FOLLOWING
24 SHALL NOT BE CONSIDERED TO BE AN ACADEMIC
25 ELEMENTARY OR ACADEMIC SECONDARY SCHOOL BUILDING:
26 NATATORIUM, STADIUM BLEACHERS, ATHLETIC FIELD,
27 ATHLETIC FIELD LIGHTING EQUIPMENT AND APPARATUS
28 USED TO PROMOTE AND CONDUCT INTERSCHOLASTIC
29 ATHLETICS.
30 (VI) THE PROJECT HAS BEEN APPROVED BY THE
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1 DEPARTMENT UNDER SECTION 731 OF THE ACT OF MARCH
2 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC
3 SCHOOL CODE OF 1949.
4 (D) TO PAY INTEREST AND PRINCIPAL ON
5 INDEBTEDNESS FOR UP TO $250,000 OF THE CONSTRUCTION
6 COST OF A NONACADEMIC SCHOOL CONSTRUCTION PROJECT, AS
7 ADJUSTED ANNUALLY BY THE PERCENTAGE INCREASE IN THE
8 AVERAGE OF THE STATEWIDE AVERAGE WEEKLY WAGE AND THE
9 EMPLOYMENT COST INDEX.
10 (IV) COSTS TO RESPOND TO CONDITIONS WHICH POSE AN
11 IMMEDIATE THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO
12 THE STUDENTS, STAFF OR RESIDENTS OF THE SCHOOL DISTRICT,
13 BUT ONLY UNTIL THE CONDITIONS CAUSING THE THREAT HAVE
14 BEEN FULLY RESOLVED.
15 (V) COSTS INCURRED IN PROVIDING SPECIAL EDUCATION
16 PROGRAMS AND SERVICES TO STUDENTS WITH DISABILITIES IF
17 THE INCREASE IN EXPENDITURES ON SPECIAL EDUCATION
18 PROGRAMS AND SERVICES WAS GREATER THAN 10%. THE DOLLAR
19 AMOUNT OF THIS EXCEPTION SHALL BE EQUAL TO THE PORTION OF
20 THE INCREASE THAT EXCEEDS 10%.
21 (VI) COSTS WHICH:
22 (A) WERE INCURRED IN THE IMPLEMENTATION OF A
23 SCHOOL IMPROVEMENT PLAN REQUIRED UNDER SECTION
24 1116(B) OF THE ELEMENTARY AND SECONDARY EDUCATION ACT
25 OF 1965 (PUBLIC LAW 89-10, 20 U.S.C. § 6316(B)); AND
26 (B) WERE NOT OFFSET BY A STATE ALLOCATION.
27 (VII) COSTS NECESSARY TO MAINTAIN:
28 (A) PER-STUDENT LOCAL TAX REVENUE, ADJUSTED BY
29 THE INDEX, IF THE PERCENTAGE GROWTH IN AVERAGE DAILY
30 MEMBERSHIP BETWEEN THE SCHOOL YEAR DETERMINED UNDER
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1 SUBSECTION (J)(4) AND THE THIRD SCHOOL YEAR PRECEDING
2 THE SCHOOL YEAR DETERMINED UNDER SUBSECTION (J)(4)
3 EXCEEDS 7.5%; OR
4 (B) ACTUAL INSTRUCTION EXPENSE PER AVERAGE DAILY
5 MEMBERSHIP, ADJUSTED BY THE INDEX, IF THE INCREASE IN
6 ACTUAL INSTRUCTION EXPENSE PER AVERAGE DAILY
7 MEMBERSHIP BETWEEN THE SCHOOL YEAR DETERMINED UNDER
8 SUBSECTION (J)(4) AND THE SCHOOL YEAR PRECEDING THE
9 SCHOOL YEAR DETERMINED UNDER SUBSECTION (J)(4) IS
10 LESS THAN THE INDEX.
11 (VIII) THE MAINTENANCE OF REVENUES DERIVED FROM REAL
12 PROPERTY TAXES, EARNED INCOME AND NET PROFITS TAXES,
13 PERSONAL INCOME TAXES, BASIC EDUCATION FUNDING
14 ALLOCATIONS AND SPECIAL EDUCATION FUNDING ALLOCATIONS,
15 ADJUSTED BY THE INDEX, FOR A SCHOOL DISTRICT WHERE THE
16 PERCENTAGE INCREASE IN REVENUES DERIVED FROM REAL
17 PROPERTY TAXES, EARNED INCOME AND NET PROFITS TAXES,
18 PERSONAL INCOME TAXES, BASIC EDUCATION FUNDING
19 ALLOCATIONS AND SPECIAL EDUCATION FUNDING ALLOCATIONS
20 BETWEEN THE SCHOOL YEAR DETERMINED UNDER SUBSECTION
21 (J)(4) AND THE SCHOOL YEAR PRECEDING THE SCHOOL YEAR
22 DETERMINED UNDER SUBSECTION (J)(4) IS LESS THAN THE
23 INDEX.
24 (IX) COSTS INCURRED FOR PROVIDING HEALTH CARE
25 RELATED BENEFITS WHICH ARE DIRECTLY ATTRIBUTABLE TO A
26 COLLECTIVE BARGAINING AGREEMENT IN EFFECT ON THE
27 EFFECTIVE DATE OF THIS SECTION BETWEEN THE SCHOOL
28 DISTRICT AND ITS EMPLOYEES' ORGANIZATION IF THE
29 ANTICIPATED INCREASE IN THE COST OF HEALTH CARE RELATED
30 BENEFITS BETWEEN THE CURRENT YEAR AND THE UPCOMING YEAR
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1 IS GREATER THAN THE INDEX. THE DOLLAR AMOUNT OF THIS
2 EXCEPTION SHALL BE EQUAL TO THE PORTION OF THE INCREASE
3 WHICH EXCEEDS THE INDEX. THIS SUBPARAGRAPH SHALL NOT
4 APPLY TO A COLLECTIVE BARGAINING AGREEMENT RENEWED,
5 EXTENDED OR ENTERED INTO AFTER THE EFFECTIVE DATE OF THIS
6 SECTION.
7 (G) REVENUE DERIVED FROM INCREASE.--ANY REVENUE DERIVED FROM
8 AN INCREASE IN THE RATE OF ANY TAX ALLOWED PURSUANT TO
9 SUBSECTION (F)(2)(III) SHALL NOT EXCEED THE ANTICIPATED DOLLAR
10 AMOUNT OF THE EXPENDITURE.
11 (H) LIMITATION ON TAX RATE.--THE INCREASE IN THE RATE OF ANY
12 TAX ALLOWED PURSUANT TO AN EXCEPTION UNDER SUBSECTION (F)(2)(I),
13 (II), (IV), (V), (VI), (VII), (VIII) OR (IX) OR (N) SHALL NOT
14 EXCEED THE RATE INCREASE REQUIRED AS DETERMINED BY A COURT OF
15 COMMON PLEAS OR THE DEPARTMENT PURSUANT TO SUBSECTION (I) OR
16 (J).
17 (I) COURT ACTION.--
18 (1) PRIOR TO THE IMPOSITION OF A TAX INCREASE UNDER
19 SUBSECTION (F)(2)(I), (II) AND (IV) AND NO LATER THAN 75 DAYS
20 PRIOR TO THE ELECTION IMMEDIATELY PRECEDING THE BEGINNING OF
21 THE SCHOOL DISTRICT'S FISCAL YEAR, APPROVAL BY THE COURT OF
22 COMMON PLEAS IN THE JUDICIAL DISTRICT IN WHICH THE
23 ADMINISTRATIVE OFFICE OF THE SCHOOL DISTRICT IS LOCATED MUST
24 BE SOUGHT. THE BOARD OF SCHOOL DIRECTORS SHALL PUBLISH IN A
25 NEWSPAPER OF GENERAL CIRCULATION AND ON THE DISTRICT'S
26 PUBLICLY ACCESSIBLE WORLD WIDE WEB SITE, IF ONE IS
27 MAINTAINED, NOTICE OF ITS INTENT TO FILE A PETITION UNDER
28 THIS SUBSECTION AT LEAST ONE WEEK PRIOR TO THE FILING OF THE
29 PETITION. THE BOARD OF SCHOOL DIRECTORS SHALL ALSO PUBLISH IN
30 A NEWSPAPER OF GENERAL CIRCULATION AND ON THE DISTRICT'S
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1 PUBLICLY ACCESSIBLE WORLD WIDE WEB SITE, IF ONE IS
2 MAINTAINED, NOTICE, AS SOON AS POSSIBLE FOLLOWING
3 NOTIFICATION FROM THE COURT THAT A HEARING HAS BEEN
4 SCHEDULED, STATING THE DATE, TIME AND PLACE OF THE HEARING ON
5 THE PETITION. THE FOLLOWING SHALL APPLY TO ANY PROCEEDINGS
6 INSTITUTED UNDER THIS SUBSECTION:
7 (I) THE SCHOOL DISTRICT MUST PROVE BY CLEAR AND
8 CONVINCING EVIDENCE THAT IT QUALIFIES FOR EACH EXCEPTION
9 SOUGHT.
10 (II) THE SCHOOL DISTRICT MUST PROVE BY CLEAR AND
11 CONVINCING EVIDENCE THE ANTICIPATED DOLLAR AMOUNT OF THE
12 EXPENDITURE FOR EACH EXCEPTION SOUGHT.
13 (2) THE COURT SHALL RULE ON THE SCHOOL DISTRICT'S
14 PETITION AND INFORM THE SCHOOL DISTRICT OF ITS DECISION NO
15 LATER THAN 55 DAYS PRIOR TO THE DATE OF THE ELECTION
16 IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S
17 FISCAL YEAR. IF THE COURT APPROVES THE PETITION, THE COURT
18 SHALL ALSO DETERMINE THE DOLLAR AMOUNT OF THE EXPENDITURE FOR
19 WHICH AN EXCEPTION IS GRANTED, THE TAX RATE INCREASE REQUIRED
20 TO FUND THE EXCEPTION AND THE APPROPRIATE DURATION OF THE
21 INCREASE. IF THE COURT DENIES THE PETITION, THE SCHOOL
22 DISTRICT MAY SUBMIT A REFERENDUM QUESTION UNDER SUBSECTION
23 (C)(1). THE QUESTION MUST BE SUBMITTED TO THE ELECTION
24 OFFICIALS NO LATER THAN 50 DAYS PRIOR TO THE DATE OF THE
25 ELECTION IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL
26 DISTRICT'S FISCAL YEAR.
27 (J) DEPARTMENT APPROVAL.--
28 (1) A SCHOOL DISTRICT THAT SEEKS TO INCREASE THE RATE OF
29 TAX DUE TO AN EXPENDITURE UNDER SUBSECTION (F)(2)(III), (V),
30 (VI), (VII), (VIII) OR (IX) OR (N) SHALL OBTAIN THE APPROVAL
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1 OF THE DEPARTMENT BEFORE IMPOSING THE TAX INCREASE. THE
2 DEPARTMENT SHALL ESTABLISH PROCEDURES FOR ADMINISTERING THE
3 PROVISIONS OF THIS SUBSECTION, WHICH MAY INCLUDE AN
4 ADMINISTRATIVE HEARING ON THE SCHOOL DISTRICT'S SUBMISSION.
5 (2) A SCHOOL DISTRICT PROCEEDING UNDER THE PROVISIONS OF
6 THIS SUBSECTION SHALL PUBLISH IN A NEWSPAPER OF GENERAL
7 CIRCULATION AND ON THE DISTRICT'S PUBLICLY ACCESSIBLE WORLD
8 WIDE WEB SITE, IF ONE IS MAINTAINED, NOTICE OF ITS INTENT TO
9 SEEK DEPARTMENT APPROVAL AT LEAST ONE WEEK PRIOR TO
10 SUBMITTING ITS REQUEST FOR APPROVAL TO THE DEPARTMENT. IF THE
11 DEPARTMENT SCHEDULES A HEARING ON THE SCHOOL DISTRICT'S
12 REQUEST, THE SCHOOL DISTRICT SHALL PUBLISH NOTICE OF THE
13 HEARING IN A NEWSPAPER OF GENERAL CIRCULATION AND ON THE
14 DISTRICT'S PUBLICLY ACCESSIBLE WORLD WIDE WEB SITE, IF ONE IS
15 MAINTAINED, IMMEDIATELY UPON RECEIVING THE INFORMATION FROM
16 THE DEPARTMENT. THE NOTICE SHALL INCLUDE THE DATE, TIME AND
17 PLACE OF THE HEARING.
18 (3) THE DEPARTMENT SHALL APPROVE A SCHOOL DISTRICT'S
19 REQUEST UNDER THIS SUBSECTION IF A REVIEW OF THE DATA UNDER
20 PARAGRAPH (4) DEMONSTRATES THAT:
21 (I) THE SCHOOL DISTRICT QUALIFIES FOR ONE OR MORE
22 EXCEPTIONS UNDER SUBSECTION (F)(2)(III), (V), (VI),
23 (VII), (VIII) OR (IX) OR (N); AND
24 (II) THE SUM OF THE DOLLAR AMOUNTS OF THE EXCEPTIONS
25 FOR WHICH THE SCHOOL DISTRICT QUALIFIES MAKES THE SCHOOL
26 DISTRICT ELIGIBLE UNDER SUBSECTION (F)(1).
27 (4) FOR THE PURPOSE OF DETERMINING THE ELIGIBILITY OF A
28 SCHOOL DISTRICT FOR AN EXCEPTION UNDER SUBSECTION (F)(2)(V),
29 (VI), (VII) OR (VIII), THE DEPARTMENT SHALL UTILIZE DATA FROM
30 THE MOST RECENT SCHOOL YEARS FOR WHICH ANNUAL FINANCIAL
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1 REPORT DATA REQUIRED UNDER SECTION 2553 OF THE ACT OF MARCH
2 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF
3 1949, HAS BEEN RECEIVED FOR ALL SCHOOL DISTRICTS. THE
4 DEPARTMENT SHALL INFORM SCHOOL DISTRICTS OF THE SCHOOL YEARS
5 DETERMINED UNDER THIS SUBSECTION NO LATER THAN 30 DAYS PRIOR
6 TO THE DATE ON WHICH PUBLIC INSPECTION OF PROPOSED SCHOOL
7 BUDGETS IS REQUIRED UNDER SECTION 311(C).
8 (5) THE DEPARTMENT SHALL RULE ON THE SCHOOL DISTRICT'S
9 REQUEST AND SHALL INFORM THE SCHOOL DISTRICT OF ITS DECISION
10 NO LATER THAN 55 DAYS PRIOR TO THE DATE OF THE ELECTION
11 IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S
12 FISCAL YEAR. IF THE DEPARTMENT APPROVES THE REQUEST, THE
13 DEPARTMENT SHALL DETERMINE THE DOLLAR AMOUNT OF THE
14 EXPENDITURE FOR WHICH THE EXCEPTION IS SOUGHT AND THE TAX
15 RATE INCREASE REQUIRED TO FUND THE EXCEPTION. IF THE
16 DEPARTMENT DENIES THE REQUEST, THE SCHOOL DISTRICT MAY SUBMIT
17 A REFERENDUM QUESTION UNDER SUBSECTION (C)(1). THE QUESTION
18 MUST BE SUBMITTED TO THE ELECTION OFFICIALS NO LATER THAN 50
19 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY PRECEDING
20 THE BEGINNING OF THE SCHOOL DISTRICT'S FISCAL YEAR.
21 (6) WITHIN 30 DAYS OF THE DEADLINE UNDER PARAGRAPH (5),
22 THE DEPARTMENT SHALL SUBMIT A REPORT TO THE PRESIDENT PRO
23 TEMPORE OF THE SENATE, THE MINORITY LEADER OF THE SENATE, THE
24 SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE MINORITY
25 LEADER OF THE HOUSE OF REPRESENTATIVES ENUMERATING THE SCHOOL
26 DISTRICTS WHICH SOUGHT AN EXCEPTION UNDER THIS SUBSECTION.
27 THE DEPARTMENT SHALL ALSO PUBLISH THE REPORT ON ITS PUBLICLY
28 ACCESSIBLE WORLD WIDE WEB SITE. THE REPORT SHALL INCLUDE:
29 (I) THE NAME OF EACH SCHOOL DISTRICT MAKING A
30 REQUEST UNDER THIS SUBSECTION.
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1 (II) THE SPECIFIC EXCEPTIONS REQUESTED BY EACH
2 SCHOOL DISTRICT AND THE DOLLAR AMOUNT OF THE EXPENDITURE
3 FOR EACH EXCEPTION.
4 (III) THE DEPARTMENT'S RULING ON THE REQUEST FOR THE
5 EXCEPTION.
6 (IV) IF THE EXCEPTION WAS APPROVED, THE DOLLAR
7 AMOUNT OF THE EXPENDITURE FOR WHICH THE EXCEPTION WAS
8 SOUGHT AND THE TAX RATE INCREASE REQUIRED TO FUND THE
9 EXCEPTION.
10 (V) A STATISTICAL SUMMARY OF THE INFORMATION IN
11 SUBPARAGRAPHS (II), (III) AND (IV).
12 (K) OBJECTIONS.--ANY PERSON THAT RESIDES WITHIN OR PAYS REAL
13 PROPERTY TAXES TO THE SCHOOL DISTRICT FILING A PETITION UNDER
14 SUBSECTION (I) MAY FILE WITH THE COURT WRITTEN OBJECTIONS TO ANY
15 PETITION FILED UNDER THIS SECTION.
16 (L) INDEX CALCULATION.--NO LATER THAN AUGUST 15, 2005, AND
17 EACH AUGUST 15 THEREAFTER, THE DEPARTMENT SHALL CALCULATE THE
18 INDEX. THE DEPARTMENT SHALL PUBLISH THE INDEX BY SEPTEMBER 1,
19 2005, AND EACH SEPTEMBER 1 THEREAFTER IN THE PENNSYLVANIA
20 BULLETIN.
21 (M) ELECTION INTERFERENCE PROHIBITED.--
22 (1) NO PUBLIC FUNDS MAY BE USED TO URGE ANY ELECTOR TO
23 VOTE FOR OR AGAINST A REFERENDUM OR BE APPROPRIATED FOR
24 POLITICAL OR CAMPAIGN PURPOSES.
25 (2) THIS SUBSECTION SHALL NOT PROHIBIT THE USE OF PUBLIC
26 FUNDS FOR DISSEMINATION OF FACTUAL INFORMATION RELATIVE TO A
27 REFERENDUM APPEARING ON AN ELECTION BALLOT.
28 (3) AS USED IN THIS SUBSECTION, THE TERM "PUBLIC FUNDS"
29 MEANS ANY FUNDS APPROPRIATED BY THE GENERAL ASSEMBLY OR BY A
30 POLITICAL SUBDIVISION.
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