Friends of Pennsylvania Leadership Charter School v. Chester County Board of Assessment Appeals
61 A.3d 354
Pa. Commw. Ct.2013Background
- Friends is a Pennsylvania nonprofit affiliated with PALCS, a public cyber charter school, and owns property in Chester County leased to PALCS.
- Friends sought exemption from real estate taxes as an institution of purely public charity in 2007; the Board denied, and the denial was affirmed on appeal.
- The General Assembly amended Section 1722-A in 2011 to provide retroactive tax exemption for associated nonprofit foundations leasing to charter/cyber charter schools.
- Friends applied for a real estate exemption for the Property in 2011; the Board granted it for 2011, and Friends then sought a refund of county taxes paid in 2008–2010 under Local Tax Collection Law §5566b.
- The trial court granted the Board’s Motion for Judgment on the Pleadings, holding Friends was not entitled to a county tax refund under 1722-A(e)(3) and noting, as dicta, that retroactive application would violate Article I, Section 11 of the Pennsylvania Constitution.
- This Court affirms the trial court’s Order, adopting the constitutional rationale consistent with Collegium Charter School that retroactive application of 1722-A(e)(3) violates Art. I, §11.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 1722-A(e)(3) retroactively exempts Friends from 2008–2010 taxes. | Friends asserts entitlement as an associated nonprofit foundation. | Board/WCASD contend Friends is not an associated nonprofit foundation and lacks pleading; retroactive exemption not applicable. | Retroactive exemption invalid; Friends not entitled to refunds under 1722-A(e)(3). |
| Whether retroactive application of 1722-A(e)(3) violates Article I, Section 11. | Friends argues government rights are not vested, so retroactivity is permissible. | Collegium Charter School framework shows vested rights protect against retroactive repeal. | Retroactive application violates Art. I, §11; affirmed on constitutional grounds. |
Key Cases Cited
- Jenkins v. Hospital of the University of Pennsylvania, 535 Pa. 252 (1993) (retroactivity impaired vested rights rule)
- Gibson v. Commonwealth, 490 Pa. 156 (1980) (accrued rights cannot be extinguished by retroactive repeal)
- Rebel v. Standard Sanitary Mfg. Co., 340 Pa. 313 (1940) (vested rights principle in employment/statutory schemes)
- Stroback v. Camaioni, 449 Pa. Super. 395 (1996) (vested rights concept in scope of retroactivity)
- Ieropoli v. A.C. & S. Corp., 577 Pa. 138 (2004) (remedy by due course of law; limits on Legislature’s interference)