Freeman conducted a series of public hearings across the state to gather information about the issue and one of those hearings was last month in Pittsburgh .

Herman and Clarion Borough Manager Nancy Freenock recently provided testimony on the issue before the local government committee headed by Freeman.

“Why are we so strong in our support of House Bill 2018 you ask? – The answer is simple. In Clarion we have built the “perfect storm” of tax exempt properties to the tune of 70.7 percent,” Herman testified. “That’s right- 70.7 percent of our total assessed property value is tax exempt. And we feel this presents an unfair tax burden on Clarion Borough taxpayers that must be addressed.”

Herman said Clarion University is the largest employer in the borough, with a total employment in Clarion of 700. That number is down about 40 since 1997. Owens-Brockway Glass has operated in Clarion since 1906 and employs approximately 450, while the third biggest employer, Clarion Hospital , moved from the Borough to Monroe Township in 1983. The hospital had 350 employees in Clarion Borough and now employs approximately 500.

“But their move to Monroe Township signaled the beginning of the expansion of the township and the Interstate 80 corridor at exit 62, that continues today,” said Herman. “Since 1980 the Clarion Hospital , Clarion Mall, four new hotels, WalMart, a new Intermediate Unit, Trinity Point Development, a large number and variety of restaurants and other establishments have keyed an unprecedented growth spurt in Monroe Township .”

According to the latest information obtained from the Clarion County Real Property Tax Summary, the Borough of Clarion has $107,018,911 in total assessed property value. Of that, $75,658,177 is tax exempt. Meaning that 70.7 percent of the assessed property value in the Borough of Clarion is not taxable.

“These figures are nothing new to the borough or its taxpayers. In 1990 the percentage of non-taxable properties was at 69.8 percent, reached a high of 71.1 percent in 1995 and currently sits at 70.7 percent,” said Herman. “In 2007 Clarion Borough received $16,247 on payments in lieu of taxes. Even considering these arrangements, Clarion Borough would be at 70 percent non-taxable assessed property.”

Herman said the non-taxable property problem crosses the state and is not just limited to Clarion Borough.

Herman said while he and his fellow council members support the expansion of CUP as a strong part of the local economy, the problem of CUP’s non-taxable status is a state problem.

“But CUP’s growth shouldn’t come at the expense of the residents of Clarion Borough. I understand that,” said Herman. “I’m committed to finding a way to lower property taxes for the residents of Clarion Borough.

“Clarion Borough offers its residents a lot of quality services and we have to pay for those services, but those services also benefit the non-taxable properties as well.”

Herman said he favors the way Freeman’s proposal approaches the problem.

Freeman’s legislation would create the Tax-Exempt Property Municipal Assistance Fund, which would be funded by dedicating revenue generated by the 18 percent Johnstown Flood Tax to the new fund.

The Johnstown Flood Tax, enacted by the state legislature in 1936 to provide financial relief to victims of flooding in Johnstown , is levied on the sale of wine and liquors and was intended to be temporary but now provides the state with approximately $240 million in annual revenue.

Passage of the legislation could mean as much as $574,000 per year for Clarion, based on the proposed formula in the bill.

Allegheny County could see as much as $24 million and Gettysburg , with 80 percent non-taxable property, could see as much as $702,000.

The funding formula within the legislation is based on the assessed value of those properties if they were taxable.

No single municipality would receive more than 10 percent of the total revenue in the fund, and property owned by the municipality itself would not be eligible.

Herman said there is now only way for the borough to cover increasing costs.

“There’s only one way to cover those costs and that is increased property taxes,” Herman told the committee. “Clarion Borough enjoyed a reputation of not raising property taxes for many years. From 1994 to 2002 we had no property tax increase. But having so much tax exempt property has finally caught up with us. In the last three years Clarion Borough had to raise taxes eight mills, and those increases were simply to pay the bills. In other words, we passed a bare bones budget leaving only a small contingency fund.”

Herman told the Clarion News, “This solution would cross all the lines. It’s not just for places with State System of Higher Education schools. It’s a totality bill.”

Herman said he also likes the proposal because it doesn’t pit the community against the university.

“We should be able to do this working side by side,” said Herman.

The bill is making its way the legislative process.