Proposal could threaten major revenue source for cities, counties

Mayors and county commissioners are trying to fight a proposal they think could imperil one of their biggest sources of revenue.

The plan is poised for action in the state Senate.

A constitutional amendment expected to pass this spring would give lawmakers the power to regulate charities that are exempt from paying property taxes.

It’s a big deal for cities and counties with high concentrations of charitable organizations like hospitals and universities.

They’re worried the amendment would mean more exempted properties and are concerned lawmakers would write rules tailored to special interests lobbying them.

If the plan passes anytime soon, it’ll go to a voter referendum.

But, Pennsylvania Municipal League head Rick Schuettler doubts people will know what they’re voting for.

“They’re not going to be saying that, ‘Do you understand that all these people are not paying taxes, and you’re paying more because of it? Are you in favor of that?’” he says.

He notes it doesn’t look like opposition from local governments will slow the proposal down.

“We’re part of a coalition that’s coming together to sort of try to bring some daylight to this issue,” he says This seems to be on a fast-track all the time. I mean the issue of exempt properties is a big one in a lot of our municipalities.”

Supporters say the amendment rightfully restores regulatory power to the Legislature, and will better protect non-profit charities without allowing giveaways to conglomerate organizations.