PA HB985

Establishes the Tax-exempt Property Municipal Assistance Fund, funded by all Pennsylvania state liquor tax revenues, to provide annual distributions to municipalities with high concentrations of tax-exempt property

Municipalities qualify for funding if tax-exempt property equals or exceeds 15% of total assessed property value, and either have median household income within 115% of the statewide median or host a county seat

County assessment offices must submit annual reports by June 30 (starting 2026) detailing all tax-exempt properties, including owner, location, assessed value, and existing payments in lieu of taxes

Per-person payment caps range from $100 to $200 based on the municipality's median household income and percentage of tax-exempt property, with lower-income municipalities having higher tax-exempt concentrations eligible for larger payments

Department of Community and Economic Development must distribute funds by September 15 each year and develop implementation guidelines within 180 days; counties failing to file reports by July 31 cause their municipalities to forfeit that year's funding