2012 Pennsylvania Consolidated Statutes
Title 53 - MUNICIPALITIES GENERALLY
Chapter 80 - General Provisions
Section 8001 - Short title, scope and applicability of subpart
PART VII
TAXATION AND FISCAL AFFAIRS
Subpart
B. Indebtedness and Borrowing
C. Taxation and Assessments
D. Employment and Employees
Enactment. Part VII was added December 19, 1996, P.L.1158, No.177, effective in 60 days.
SUBPART B
INDEBTEDNESS AND BORROWING
Chapter
80. General Provisions
81. Incurring Debt and Issuing Bonds and Notes
82. Miscellaneous Provisions
CHAPTER 80
GENERAL PROVISIONS
Subchapter
A. Preliminary Provisions
B. Limitations on Debt of Local Government Units
C. Procedure for Securing Approval of Electors
Enactment. Chapter 80 was added December 19, 1996, P.L.1158, No.177, effective in 60 days.
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
8001. Short title, scope and applicability of subpart.
8002. Definitions.
8003. Advertisement and effectiveness of ordinances.
8004. When lease or other agreement evidences acquisition of capital asset.
8005. Classification and authority to issue bonds and notes.
8006. Preliminary cost estimates.
8007. Cost of project.
8008. Home rule.
8009. Guaranty funds and compulsory associations.
§ 8001. Short title, scope and applicability of subpart.
(a) Short title of subpart.--This subpart shall be known and may be cited as the Local Government Unit Debt Act.
(b) Scope of subpart.--This subpart shall apply to all local government units.
(c) Exemption of bonds and notes from taxation in this Commonwealth.--This section is the Commonwealth's pledge to and agreement with a person, firm, corporation or Federal agency subscribing to or acquiring any bonds or notes, including tax anticipation notes issued by any local government unit under this subpart, the act of June 25, 1941 (P.L.159, No.87), known as the Municipal Borrowing Law, or the act of July 12, 1972 (P.L.781, No.185), known as the Local Government Unit Debt Act, that the bonds or notes, their transfer and the income therefrom, including any profits made on their sale, shall be free from taxation for State and local purposes within this Commonwealth. This exemption does not apply to gift, inheritance, succession or estate taxes or any other taxes not levied directly on the bonds or notes, their transfer, the income therefrom or the realization of profits on their sale. The exemption under this subsection of profits made on the sale of bonds or notes does not apply to bonds or notes issued on or after February 1, 1994 (the effective date of section 2901 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971).
(d) Exclusive procedure.--A local government unit may borrow money on bonds or notes, including tax anticipation notes, only as provided in this subpart. This subpart provides an exclusive and uniform system on the subjects covered by this subpart.
(May 5, 1998, P.L.301, No.50, eff. 60 days)
1998 Amendment. Act 50 amended subsec. (c).
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