bill that’s been stuck in a General Assembly committee for over a year would give counties, currently limited to the property tax for revenue, the option to levy a one percent sales tax.

The bill is specifically targeted for counties that have tax-generation issues with tax exempt properties.

As the Warren County Commissioners held a public hearing Wednesday to consider an amendment to the county’s comprehensive plan to limit the future expansion of government owned land, Warren County certainly fits the bill

“By definition, tax-exempt institutions and the properties they occupy are assets to Pennsylvanians,” Rep. Michael Sturla (D-Lancaster) said in a memo for HB 678. “However, they also pose a ‘burden’ from a tax-generating standpoint for local governments who rely on property taxes to pay for vital services.

He outlined legislation that would allow counties to enact the sales via ordinance from the county commissioners or voter referendum.

“Revenue generated by this sales tax shall be allocated to counties and municipalities within the adopted county based on the assessed value of tax-exempt properties if they were taxable in each municipality located in the county,” Sturla argued. “Counties and municipalities could use this revenue to pay pension obligations and maintain core services, such as police, fire, public works, parks, libraries and administrative services, as well as lower overall property tax burdens.”

The bill has languished in a House committee since March 2023.

The County Commissioners Association of Pennsylvania offered testimony to the committee back in April in support of the bill.

“Counties have long called for local taxing options to reduce their burden on the property tax, and HB 678 represents a good starting point for ongoing discussions around these priorities,” Frank Mazza, CCAP’s director of government relations, said in prepared testimony.

“Right now, counties have all their eggs in one basket, to follow the old adage, with only the property tax as a source of local general fund revenues,” Mazza said. “So when costs and mandates go up, and state and federal funding go down, they have nowhere else to go but the property taxpayer to fund critical programs and services.”

He acknowledged that the issue is “compounded” in areas where there is a “significant portion of property that is either tax exempt or preferentially assessed.

“It is time to stop talking about county property taxpayers as though they are a different set of individuals and offer counties the taxing options they seek to help relieve the burden on the commonwealth’s property owners.”