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Legislation for TMI tax break in state Senate

By Dan Miller

danmiller@pressandjournal.com

717-944-4628
Posted 9/11/19

With the Sept. 30 shutdown of Three Mile Island now a certainty, legislation has been introduced in the state Senate to make grants available to communities affected by a power plant …

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Legislation for TMI tax break in state Senate

Posted

With the Sept. 30 shutdown of Three Mile Island now a certainty, legislation has been introduced in the state Senate to make grants available to communities affected by a power plant closing.

Senate Bill 704 was introduced in June by Sen. John DiSanto, R-Dauphin County, whose district includes much of Lower Dauphin School District — which receives close to $700,000 a year in property taxes from TMI.

Sen. Mike Folmer, R-Lebanon, is a co-sponsor of the bill, which is awaiting action in the Senate Local Government Committee. The Senate returns to session on Sept. 21.

Under DiSanto’s proposal, the Department of Community and Economic Development would make state grants available to local governments that experience a reduction of at least 20 percent in property tax collections and payments in lieu of taxes received from a power plant.

Eligible local governments could apply for temporary relief for up to four years. Initial awards may be up to 80 percent of the demonstrated tax loss in the first year, up to 60 percent in year two, 40 percent in year three, and 20 percent in year four.

The relief would give municipalities and school districts time to replace tax shortfalls and to transition while lessening the immediate impact on schools and essential public services.

The General Assembly would have to appropriate money each year to fund the grants.

DiSanto’s Senate district includes parts of Dauphin and Perry counties.