HB 985 Pennsylvania House · 2025-2026 Regular Session

An Act providing for an annual revenue-sharing program for municipalities relating to tax-exempt real property; establishing the Tax-exempt Property Municipal Assistance Fund; imposing powers and duties on the Department of Community and Economic Development; and making a repeal.

HB 985 creates an annual revenue-sharing program where municipalities receive funds based on tax-exempt real property (like schools or nonprofits) within their borders. It establishes the Tax-exempt Property Municipal Assistance Fund to distribute these shared revenues. The Department of Community and Economic Development would manage the fund and determine annual allocations. The bill also repeals outdated provisions related to this tax-exempt property revenue system.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 20, 2025 Last action Sep 10, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN1075 → Printer's No. PN2023 · 6 edits

MODERATE

This bill update significantly expands eligibility criteria and payment limits for municipalities receiving revenue-sharing funds based on tax-exempt property. The changes add new income thresholds, introduce county seat status as a qualifying factor, and establish tiered per-person payment caps ranging from $100 to $200 depending on a municipality's median income and tax-exempt property concentration. These modifications aim to better target funding toward municipalities with higher concentrations of tax-exempt property while accounting for economic disparities across different communities.

Scope change

The bill's scope expanded to include additional eligibility criteria beyond just tax-exempt property concentration, now incorporating median household income thresholds and county seat status as qualifying factors for revenue distribution.

ELIGIBILITY

Added county seat status as a qualifying condition for municipalities to receive revenue-sharing payments

Modified income eligibility criteria to include both first-year and subsequent year thresholds based on 2022 and most recent Census data

FISCAL

Established tiered per-person payment limits ranging from $100 to $200 based on median household income and tax-exempt property concentration levels

Changed recalculation procedures to handle municipalities exceeding payment limits with more detailed allocation rules

REQUIREMENT

Added specific reporting requirements for payments in lieu of tax or other funding received under Federal or State programs

DEFINITION

Updated definition of 'Common level ratio' to reference the Community and Economic Development Enhancement Act

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Sep 10, 2025

Lower · Passed

Re-reported as committed

lower

Jun 25, 2025

Committee

Re-committed to Rules

lower

Jun 25, 2025

Lower · Passed

Reported as amended

lower

Mar 20, 2025

Committee

Referred to Local Government

lower

1 primary · 26 co-sponsors