PROPOSED AMENDMENT TO THE CONSTITUTION OF PENNSYLVANIA

The following is a true and correct copy of a joint resolution of the General Assembly of Pennsylvania proposing an amendment to the Constitution of Pennsylvania. Consistent with the procedures prescribed by Article XI, Section 1 of the Constitution, the General Assembly first proposed the amendment during the 2016 session and approved it for a second time during the 2017 session of the legislature. As required by Article XI, Section 1 of the Constitution and statutory law, the Secretary of the Commonwealth has caused the proposed amendment to be published here.

Pursuant to law, the Secretary of the Commonwealth will submit the proposed amendment to the electors of Pennsylvania in the form of a ballot question at the Municipal Election to be held on November 7, 2017. If a ballot question is approved by a majority of electors voting on it, the corresponding amendment becomes part of the Constitution.

Those parts of the joint resolution that appear in BOLD PRINT are the words of the Constitution that are proposed by the General Assembly for addition or deletion. If an amendment were approved, the words UNDERLINED would be added to the Constitution and the words in BRACKETS (e.g., [Constitution]) would be deleted. The unbolded words would remain unchanged in the Constitution.

Following the proposed amendment is the text of the question that will be placed on the ballot. Below the question is a “Plain English Statement” prepared by the Office of Attorney General, and published as required by law, indicating the purpose, limitations and effects of the ballot question upon the people of this Commonwealth.

Anyone who needs help reading this advertisement or who needs the text of the proposed amendment in an alternative format may call or write the Pennsylvania Department of State, Bureau of Commissions, Elections and Legislation, Room 210 North Office Building, Harrisburg, PA 17120, (717) 787-5280, ra-BCEL@pa.gov. Pedro A. Cortés Secretary of the Commonwealth

JOINT RESOLUTION 2017-1

Proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, further providing for exemptions and special provisions. The General Assembly of the Commonwealth of Pennsylvania hereby resolves as follows: Section 1. The following amendment to the Constitution of Pennsylvania is proposed in accordance with the provisions of Article XI:

That section 2(b)(vi) of Article VIII be amended to read: § 2. Exemptions and special provisions. *** (b) The General Assembly may, by law: *** (vi) Authorize local taxing authorities to exclude from taxation an amount based on the assessed value of homestead property. The exclusions authorized by this clause shall not exceed [one-half of the median assessed value of all] 100% of the assessed value of

each homestead property within a local taxing jurisdiction. A local taxing authority may not increase the millage rate of its tax on real property to pay for these exclusions. *** Section 2. (a) Upon the first passage by the General Assembly of this proposed constitutional amendment, the Secretary of the Commonwealth shall proceed immediately to comply with the advertising requirements of section 1 of Article XI of the Constitution of Pennsylvania and shall transmit the required advertisements to two newspapers in every county in which such newspapers are published in sufficient time after passage of this proposed constitutional amendment.

(b) Upon the second passage by the General Assembly of this proposed constitutional amendment, the Secretary of the Commonwealth shall proceed immediately to comply with the advertising requirements of section 1 of Article XI of the Constitution of Pennsylvania and shall transmit the required advertisements to two newspapers in every county in which such newspapers are published in sufficient time after passage of this proposed constitutional amendment. The Secretary of the Commonwealth shall submit this proposed constitutional amendment to the qualified electors of this Commonwealth at the first primary, general or municipal election which meets the requirements of and is in conformance with section 1 of Article XI of the Constitution of Pennsylvania and which occurs at least three months after the proposed constitutional amendment is passed by the General Assembly.

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PROPOSED CONSTITUTIONAL AMENDMENT AMENDING THE HOMESTEAD PROPERTY TAX ASSESSMENT EXCLUSION Ballot Question

Shall the Pennsylvania Constitution be amended to permit the General Assembly to enact legislation authorizing local taxing authorities to exclude from taxation up to 100 percent of the assessed value of each homestead property within a local taxing jurisdiction, rather than limit the exclusion to one-half of the median assessed value of all homestead property, which is the existing law?

Plain English Statement of the Office of Attorney General

The purpose of the ballot question is to amend Article VIII, Section 2(b)(vi) of the Pennsylvania Constitution to permit the General Assembly to pass a law authorizing local taxing authorities to increase the amount of assessed value of homestead property that may be excluded when determining the real estate tax owed for homestead property. If the ballot question is approved, the General Assembly could then pass a law authorizing local taxing authorities to exclude up to one-hundred percent (100%) of the assessed value of each homestead property when calculating the real estate tax owed on homestead property.

The Pennsylvania Constitution currently permits the General Assembly to pass a law authorizing local taxing authorities to exclude only a portion of the assessed value of homestead property when determining the amount of real estate tax owed. Under current law, the amount of assessed value that may be excluded from taxation cannot exceed onehalf the amount of the median assessed value of all homestead property within a local taxing jurisdiction. Local taxing authorities may not increase the millage rate of its real property tax to pay for homestead property exclusions.

The effect of the ballot question would allow the General Assembly to pass a law increasing the amount of assessed value that local taxing authorities may exclude from real estate taxation for homestead property. Currently, local taxing authorities can exclude from taxation only up to one-half the amount of the median assessed value of all homestead property located in the local taxing jurisdiction. But if the ballot question is approved, the General Assembly would have authority to pass a law permitting local taxing authorities to exclude up to one-hundred percent (100%) of the assessed value of each homestead property. Local taxing authorities would continue to be prohibited from increasing the millage rate of its tax on real property to pay for the homestead exclusions.

The ballot question, by itself, does not authorize local taxing authorities to exclude up to one-hundred percent (100%) of the assessed value of each homestead property from real estate taxation. Local taxing authorities could not take such action unless and until the General Assembly passes a law authorizing them to do so. The ballot question authorizes the General Assembly to pass that law.