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§ 376. Presumption process

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 10 P.S. Charities and Welfare

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 10 P.S. Charities and Welfare (Refs & Annos)
Chapter 13. Institutions of Purely Public Charity Act (Refs & Annos)
10 P.S. § 376
§ 376. Presumption process
Currentness
(a) Presumption determination.--An institution of purely public charity possessing a valid exemption from the tax imposed by Article II of the act of March 4, 1971 (P.L. 6, No. 2),1 known as the Tax Reform Code of 1971, shall be entitled to assert a rebuttable presumption regarding that institution's compliance with the criteria set forth in section 52 as follows:
(1) An institution of purely public charity that has annual program service revenue less than $10,000,000 shall be entitled to assert the presumption if the institution possesses a valid exemption under section 204(10) of the Tax Reform Code of 1971.3
(2) An institution of purely public charity that has annual program service revenue equal to or exceeding $10,000,000 shall be entitled to assert the presumption if all of the following apply:
(i) the institution possesses a valid exemption under section 204(10) of the Tax Reform Code of 1971; and
(ii) the institution has a voluntary agreement as provided under section 74 with a political subdivision in which that institution conducts substantial business operations.
(3) The presumption pursuant to paragraph (2) may be asserted by an institution of purely public charity only with regard to a challenge made by a political subdivision with which that institution has a voluntary agreement in effect pursuant to section 7.
(4) For the purpose of calculating annual program service revenue under this section, an institution of purely public charity may elect to average annual program service revenue for its two most recently completed fiscal years.
(5) Commencing July 1, 1999, and every year thereafter, the Department of Revenue shall increase the amount set forth in paragraphs (1) and (2) by 1%. The department shall transmit notice of the adjustment to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
(b) Burden of proof.--If an institution of purely public charity asserts a presumption under subsection (a), a political subdivision challenging that institution before a government agency or court shall bear the burden, by a preponderance of the evidence, of proving that the institution of purely public charity does not comply with the requirements of section 5.
(c) Issuance of written order.--The department shall furnish a written order to any institution applying for exemption under section 204(10) of the Tax Reform Code of 1971 approving or denying the exemption. An order denying an exemption shall include specific information concerning that institution's failure to comply with at least one of the criteria under section 5.
(d) Waiver of confidentiality.--An institution of purely public charity asserting a presumption under subsection (a) shall be deemed to have waived any right to confidentiality with regard to all records in the possession of the department relating to the application for exemption. These records shall be deemed public records that the department must furnish to any person upon request. A political subdivision challenging such presumption may request from the institution of purely public charity all relevant financial statements, records and documents used to obtain the exemption under section 204(10) of the Tax Reform Code of 1971. Failure by that institution to supply or, at its option, to permit inspection of such information in its possession within 30 days shall eliminate the presumption with respect to that challenge.
(e) Department involvement.--A determination made under this section shall not in any way subject the department to participation in any controversy, discovery or litigation between a political subdivision and an institution claiming the exemption as an institution of purely public charity, other than providing a copy of its written order and any supporting documentation supplied to the department by that institution.

Credits

1997, Nov. 26, P.L. 508, No. 55, § 6, imd. effective.

Footnotes

1
72 P.S. § 7201 et seq.
2
10 P.S. § 375.
3
72 P.S. § 7204.
4
10 P.S. § 377.
10 P.S. § 376, PA ST 10 P.S. § 376
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document