HB 2153 — An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in taxation by school districts, further providing for definitions, providing for disposition of data center property tax revenue and further providing for school district tax notices.

PRINTER'S NO.   2780

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2153
                                               Session of
                                                 2026

     INTRODUCED BY OLSOMMER, PUGH, WATRO, RADER, WALSH, ROWE,
        ZIMMERMAN, FRITZ, OWLETT AND K.HARRIS, JANUARY 21, 2026

     REFERRED TO COMMITTEE ON EDUCATION, JANUARY 21, 2026


                                    AN ACT
 1   Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
 2      No.1), entitled "An act providing for taxation by school
 3      districts, for the State funds formula, for tax relief in
 4      first class cities, for school district choice and voter
 5      participation, for other school district options and for a
 6      task force on school cost reduction; making an appropriation;
 7      prohibiting prior authorized taxation; providing for
 8      installment payment of taxes; restricting the power of
 9      certain school districts to levy, assess and collect taxes;
10      and making related repeals," in taxation by school districts,
11      further providing for definitions, providing for disposition
12      of data center property tax revenue and further providing for
13      school district tax notices.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    Section 302 of the act of June 27, 2006 (1st
17   Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is
18   amended by adding a definition to read:
19   Section 302.    Definitions.
20      The following words and phrases when used in this chapter
21   shall have the meanings given to them in this section unless the
22   context clearly indicates otherwise:
23      * * *
 1      "Data center."    A facility primarily used for storage,
 2   management and processing of digital data related to the
 3   functioning of artificial intelligence or artificial-
 4   intelligence-powered language models. A facility shall not be
 5   considered a data center unless the facility is used to house
 6   all of the following:
 7            (1)   Computer and network systems, including associated
 8      components such as servers, network equipment and appliances,
 9      telecommunications and data storage systems.
10            (2)   Data communications connections.
11            (3)   Equipment used for the transformation, transmission,
12      distribution or management of at least one megawatt of
13      capacity of electrical power and cooling, including
14      substations, uninterruptible power supply systems, all
15      electrical plant equipment and associated air handlers.
16            (4)   Internet-related and artificial-intelligence-related
17      equipment and services.
18      * * *
19      Section 2.    The act is amended by adding a section to read:
20   Section 334.1.    Disposition of data center property tax revenue.
21      (a)   First fiscal year.--In the first fiscal year that
22   unabated property taxes are fully imposed on data centers
23   located within a school district, all revenue received by the
24   school district that is directly attributable to the imposition
25   of property taxes on data centers shall be used to fund
26   exclusions for homestead and farmstead properties.
27      (b)   Subsequent fiscal years.--In the second fiscal year and
28   each fiscal year thereafter, an amount equivalent to the revenue
29   directly attributable to the imposition of property taxes on
30   data centers in the first full fiscal year in which property

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 1   taxes are levied and collected shall be used to fund exclusions
 2   for homestead and farmstead properties.
 3      (c)   Prior years.--If, prior to the effective date of this
 4   subsection, a school district has imposed property taxes on data
 5   centers for one or more full fiscal years, the first full fiscal
 6   year after the effective date of this subsection shall be
 7   considered the first fiscal year for the purposes of this
 8   section. A school district may not be required to contribute
 9   funds for property tax revenue collected from taxes imposed on
10   data centers in fiscal years prior to the effective date of this
11   subsection.
12      Section 3.    Section 343(a) of the act is amended to read:
13   Section 343.    School district tax notices.
14      (a)   Tax notice.--A school district that implements homestead
15   and farmstead exclusions shall itemize the homestead and
16   farmstead exclusion on tax bills sent to homestead and farmstead
17   owners, indicating the original amount of tax liability, the
18   amount of the exclusion and the net amount of tax due after the
19   exclusion is applied. If a school district contributes funds
20   under section 334.1, the amount contributed and the amount of
21   exclusion granted under section 334.1 shall be included in the
22   itemization. The tax bill shall be easily understandable and
23   include a notice pursuant to subsection (b).
24      * * *
25      Section 4.    This act shall apply to taxable years beginning
26   after December 31, 2025.
27      Section 5.    This act shall take effect immediately.




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