Pennsylvania Senate Passes Proposed Amendment on Nonprofit Tax Exemptions

A proposal to give the Pennsylvania General Assembly the authority to decide when hospitals and other not-for-profit organizations receive tax exemptions cleared the Pennsylvania Senate Tuesday over opposition from Democrats. The proposal, which would amend the state Constitution, passed both legislative chambers in 2013. If it passes the House this year or next, it will appear on a ballot for approval by the voters.

Local governments have opposed the amendment, arguing that handing the Legislature the power to determine tax exemptions would diminish local officials’ prospects in seeking tax revenue from nonprofit organizations.