Court Opinion

ID: 9760785
Source: CourtListenerOpinion
Date Created: 2023-08-29 01:15:12.629318+00
Date Added: 2024-06-11T07:29:17.284870
License: Public Domain

DISSENTING OPINION BY
Judge LEAVITT.
Respectfully, I dissent. The majority’s holding that WRC North Fork Heights, Inc. (WRC) failed to prove it was a purely public charity contravenes the binding precedent of G.D.L. Plaza Corp. v. Council Rock School District, 515 Pa. 54, 526 A.2d 1173 (1987) (G.D.L. Plaza ID, wherein our Supreme Court held that a federally subsidized low-income housing provider, which was identical in all respects to WRC, was a purely public charity. G.D.L. Plaza II compels the same conclusion with respect to WRC’s tax exemption request. In addition, the effect of the majority’s holding is to nullify two acts of our General Assembly, which contravenes the Court’s duty to presume the constitutionality of our legislative enactments and to give them effect.
Background
In 1994, WRC entered into a Capital Advance Agreement with the U.S. Department of Housing and Urban Development (HUD) for a $3 million loan that was used to construct North Fork Heights, a two story apartment building in Brookville, Pennsylvania.1 All 56 of the one-bedroom apartments in North Fork Heights are occupied by persons who qualify for rent subsidies from HUD by reason of their low income. These subsidies make up the difference between WRC’s costs and its rental revenue.
The availability of subsidies are governed by WRC’s 20-year contract with HUD, which provides WRC a fixed amount of federal funds to support WRC’s operations. The contract allows WRC to draw on these funds at a rate determined by its operational expenses. However, if WRC uses the contractually allocated funds too quickly, WRC cannot look to HUD for additional funds. Stated otherwise, the HUD Section 202 subsidies do not relieve WRC of all financial risk. In addition, WRC’s eligibility for subsidies is subject to HUD’s ongoing and thorough oversight.2
In 2004, Jefferson County notified WRC that it owed real estate taxes in the *903amount of $34,498.40 for 2004.3 Shortly thereafter, WRC requested a tax exemption from the Jefferson County Board of Assessment Appeals (Board). WRC asserted that as a federally funded low-income housing provider, it had an express exemption from real property taxation under Section 204(a)(3) of The General County Assessment Law, Act of May 22, 1933, P.L. 853, as amended, 72 P.S. § 5020-204(a)(3) (Assessment Law). The Board denied the exemption request.
WRC appealed, and a hearing was conducted by the trial court, which affirmed the Board.4 The trial court reasoned that WRC was required, first, to demonstrate that it was a purely public charity within the meaning of the Pennsylvania Constitution and, if successful, then WRC had to show that it satisfied the terms for a Section 204(a)(3) exemption. Finding that WRC failed two of the five criteria established in Hospital Utilization Project v. Commonwealth, 507 Pa. 1, 487 A.2d 1306 (1985), the trial court concluded that WRC was not a purely public charity. Accordingly, the trial court did not consider whether WRC complied with the terms of Section 204(a)(3) of the Assessment Law.
The central issue in this appeal is by what standards should the tax exemption request of a federally subsidized provider of low-income housing, such as WRC, be judged. The answer requires a review of the authority relevant to any tax exemption request, which is found in our Pennsylvania Constitution, in enactments of the General Assembly and in our Supreme Court’s precedent.
Pennsylvania Constitution
The Pennsylvania Constitution authorizes the General Assembly to exempt institutions of purely public charity from taxation in Article VIII, Section 2, which states as follows:
(a) The General Assembly may by law exempt from taxation:
(v) Institutions of purely public charity, but in the case of any real property tax exemptions only that portion of real property of such institution which is actually and regularly used for the purposes of the institution.
Pa. Const, art. VIII, 2(a)(v). The “constitution does not, of itself, exempt any property; it merely permits the legislature to do so within certain limits.” G.D.L. Plaza II, 515 Pa. at 58, 526 A.2d at 1175 (1987) (quoting Donohugh’s Appeal, 86 Pa. 306, 309 (1878)). The obverse is likewise true: the constitution does not obligate the legislature to provide any taxpayer with exemptions.
Exercising its authority under Article VIII, Section 2, the General Assembly has established tax exemptions for purely public charities in a number of tax statutes. For example, “charitable institutions” have been exempted from the payment of sales and use taxes,5 and corporations holding a 501(c)(3) exemption from the Internal Rev*904enue Code have been exempted from the payment of corporate net income taxes.6 Regardless of what term is chosen by the legislature to identify the exempt taxpayer, ie., “charitable” or “501(c)(3) corporation,” that statutory term will be treated as synonymous with “purely public charity” as used in Article VIII, Section 2 of the Constitution.7
The standards for identifying a “purely public charity” emerged in the case law over the course of many years. See, e.g., Appeal of Woods Schools Tax Exemption Case, 406 Pa. 579, 178 A.2d 600 (1962). These cases culminated in the landmark case, Hospital Utilization Project, which, drawing on years of precedent, announced a five-part test, the so-called HUP test, for determining whether an institution is a purely public charity. Under the HUP test, a purely public charity (a) advances a charitable purpose, (b) donates or renders gratuitously a substantial portion of its services, (c) benefits a substantial and indefinite class of persons who are legitimate subjects of charity, (d) relieves the government of some of its burden, and (e) operates entirely free from private profit motive. 507 Pa. at 22, 487 A.2d at 1317.
The G.D.L. Plaza Litigation
Our Supreme Court held in G.D.L. Plaza II that a federally subsidized low-income housing provider was a “purely public charity” within the meaning of Article VIII, Section 2 of the Pennsylvania Constitution. This binding, but inconvenient, holding is disregarded by the majority.
G.D.L. Plaza’s eligibility for a tax exemption was governed by an earlier version of Section 204(a)(3) of the Assessment Law that stated in relevant part as follows:
(a) The following property shall be exempt from all county, city, borough, town, township, road, poor and school tax, to wit:
(3) All hospitals, universities, colleges, seminaries, academies, associations and institutions of learning, benevolence, or charity, including fire and rescue stations, with the grounds thereto annexed and necessary for the occupancy and enjoyment of the same, founded, endowed, and maintained by public or private charity: Provided, That the entire revenue derived by the same be applied to the support and to increase the efficiency and facilities thereof, the repair and the necessary increase of grounds and buildings thereof, and for no other purpose.
*90572 P.S. § 5020-204(a)(3) (emphasis added). In 1987, two years after the HUP test was announced, our Supreme Court considered whether G.D.L. Plaza was entitled to a tax exemption under the above-quoted statutory provision.
The Supreme Court found certain facts about G.D.L. Plaza’s operation to be critical to the outcome. First, G.D.L. Plaza was organized as a Pennsylvania non-profit corporation for the purpose of providing housing to low-income elderly persons, who paid below-market level rents. Second, G.D.L. Plaza received assistance from HUD by way of a loan under Section 202 of the Housing Act of 1959, 12 U.S.C. § 1701q, for construction of the facility. Under its loan agreement, G.D.L. Plaza agreed to comply with HUD guidelines with respect to admissions, rental agreements, occupancy and rental subsidies.8 Third, G.D.L. Plaza received monthly subsidies from HUD to make up the difference between its rental income and its actual costs.
Based upon these facts, the Supreme Court came to two conclusions. First, it held that G.D.L. Plaza satisfied each of the five factors in the HUP test. Accordingly, G.D.L. Plaza was held to be a “purely public charity” within the meaning of Article VIII, Section 2 of the Pennsylvania Constitution. Second, it held that G.D.L. Plaza was, nevertheless, not entitled to a tax exemption because it failed the statutory test set forth in Section 204(a)(3) of the Assessment Law. It so held because G.D.L. Plaza was not “maintained by public or private charity” but, rather, by federal tax dollars. G.D.L. Plaza II, 515 Pa. at 64, 526 A.2d at 1178.9
The Supreme Court reversed this Court’s holding that G.D.L. Plaza was not a purely public charity. Council Rock School District v. G.D.L. Plaza Corp., 91 Pa.Cmwlth. 176, 496 A.2d 1298 (1985) (G.D.L. Plaza I). This Court had reasoned that the services G.D.L. Plaza provided to its residents were inadequate to satisfy the test “rendering gratuitously a substantial portion of its services.” Id. at 1302. Further, because HUD subsidized G.D.L. Plaza’s operations, this Court reasoned that G.D.L. Plaza was not “relieving the government of any of its burdens.” Id. In reversing this Court’s application of the HUP test, the Supreme Court acknowledged that it had been difficult for this Court to “assess in advance the relative importance of each of the factors listed in Hospital Utilization Project.” G.D.L. Plaza II, 515 Pa. at 62, 526 A.2d at 1176. However, it concluded that this Court’s “advance assessment” was incorrect, explaining that this Court had placed too little weight on the services rendered by G.D.L. Plaza, i.e., providing housing at below cost, and placed too much weight on the extent to which the government must be relieved of its burden.10
*906The majority’s holding on WRC’s appeal flies in the face of the Supreme Court’s holding in G.D.L. Plaza II. It follows the logic and reasoning used by this Court in G.D.L. Plaza I that was expressly rejected by the Supreme Court.11 Residents at WRC receive housing at below cost; this, in itself, is a gratuitous service, as explained in G.D.L. Plaza II, 515 Pa. at 62, 526 A.2d at 1176. Further, by subsidizing WRC, the government is relieved of the burden of having to provide this housing directly. Id. By proving that its operations are identical to those of G.D.L. Plaza, WRC did not fail the two HUP test criteria as found by the trial court; to the contrary, it passed them. As a matter of G.D.L. Plaza IPs binding precedent, WRC is a purely public charity.12
Legislative Changes After G.D.L. Plaza
Since the decision in G.D.L. Plaza II, two important legislative developments have occurred. First, the General Assembly amended Section 204(a)(3) of the Assessment Law in 1992, so that it now reads as follows:
And provided further, That any charitable organization providing residential housing services in which the charitable nonprofit organization receives subsidies for at least ninety-five per centum of the residential housing units from a low-income Federal housing program shall remain a “purely public charity” and tax exempt provided that any surplus from such assistance or subsidy is monitored by the appropriate governmental agency and used solely to advance common charitable purposes within the charitable organization.
Section 1(a)(3) of the Act of December 14, 1992, P.L. 886, as amended, 72 P.S. § 5020-204(a)(3). Second, the General Assembly enacted Act 55, which codified the “traditional legislative and judicial applications of the constitutional term 'institutions of purely public charity.’ ” Section 2(b) of Act 55, 10 P.S. § 372(b). The task in this appeal is to determine how each of these two legislative enactments apply to WRC’s request for a tax exemption.
The 1992 amendment to Section 204(a)(3) was enacted in response to the Supreme Court’s decision in G.D.L. Plaza II.13 In using the phrase “shall remain a purely public charity,” the General Assembly codified the Supreme Court’s holding in G.D.L. Plaza II that a federally subsidized provider of low-income housing is a *907purely public charity.14 The General Assembly also matched the evidentiary burden of a federally subsidized low-income housing provider seeking a tax exemption to the holding in G.D.L. Plaza II. To be entitled to “remain” a purely public charity, the applicant for an exemption must show that it is non-profit and that 95% of its units are subsidized under a “low-income Federal housing program.” 72 P.S. § 5020-204(a)(3).
The record made by WRC cannot be distinguished from that made by G.D.L. Plaza, and, therefore, it met the evidentia-ry burden required of a low-income housing provider seeking to “remain a purely public charity.” 72 P.S. § 5020-204(a)(3). The only factual difference between the two cases is one that tips the balance in favor of WRC. In G.D.L. Plaza II, the Supreme Court reasoned that because the federal government subsidies could be increased to cover real estate taxes, G.D.L. Plaza had no risk. Here, by contrast, the record shows that WRC assumes a risk in undertaking its charitable mission. It can only draw so much in the way of federal subsidies to make up the budgetary shortfall created by inadequate rents; there is no evidence that WRC can simply get more federal funds to pay taxes.
However, to qualify for a tax exemption under Section 204(a)(3) of the Assessment Law, it is not enough for a low-income housing provider to be a purely public charity. It must also show that its “surplus or subsidy” from HUD is monitored by HUD; and that the subsidy, or the surplus it generates, is used “solely to advance [the] common charitable purposes.” 72 P.S. § 5020-204(a)(3). These facts were also proved by WRC.
In sum, the only legal conclusion to be drawn from this record is that WRC is entitled to be tax exempt. First, WRC produced evidence that it was a purely public charity. It did so by demonstrating that its operations are indistinguishable from those of G.D.L. Plaza. Under the binding precedent of G.D.L. Plaza II and under Section 204(a)(3) of the Assessment Law, WRC is entitled to “remain a purely public charity.” Second, WRC’s evidence established that it satisfied the additional statutory standards in Section 204(a)(3) for a low-income housing provider seeking a tax exemption.
The next question is whether the 1992 version of Section 204(a)(3) of the Assessment Law was affected by the subsequent 1997 enactment of Act 55. I believe it was not.
The General Assembly explained that its purpose in enacting Act 55 was as follows:
It is the intent of the General Assembly to eliminate inconsistent application of eligibility standards for charitable tax exemptions ... by providing standards to be applied uniformly in all proceedings throughout this Commonwealth for determining eligibility from exemption from State and local taxation which are consistent with traditional legislative and judicial applications of the constitutional term “institutions of purely public charity.”
10 P.S. § 372(b)15 (emphasis added). Stated otherwise, Act 55 was intended to be consistent with, inter alia, the holdings *908of Hospital Utilization Project and of G.D.L. Plaza II, as well as with Section 204(a)(3) of the Assessment Law. To effect uniform proceedings, Act 55 established standard procedures for determining whether a taxpayer is entitled to an exemption.16 It codified the HUP test, making it the legislative test for determining whether an entity is a purely public charity.17 In the interest of a unitary scheme, Act 55 repealed all acts “inconsistent” with its terms. The statutory exemption for low-income housing providers was not included in this repeal. Section 14(b) of Act 55 states as follows:
All other acts and parts of acts are repealed insofar as they are inconsistent with this act except for section 204(a)(3) of the act of May 22, 1933 (P.L. 853, No. 155), known as The General County Assessment Law, as it applies to charitable organizations providing residential housing services.
10 P.S. § 384(b).
These pertinent provisions of Act 55 lead to one conclusion: the General Assembly intended Section 204(a)(3) of the Assessment Law to remain the definitive test to apply where a low-income housing provider seeks a tax exemption.18 Thus, low-income housing providers with operations like those of G.D.L. Plaza, or WRC, continue to have their tax exemption requests governed exclusively by Section 204(a)(3) of the Assessment Law, rather than by Act 55.19
The Community Options, Inc. Holding
The majority asserts that in Community Options, Inc. v. Board of Property Assess*909ment, 571 Pa. 672, 813 A.2d 680 (2002), (Community Options II) the Supreme Court held that the HUP test continues to apply to tax exemption requests made by those claiming to be purely public charities, notwithstanding the enactment of Act 55. This was not the holding in Community Options II.
In that case, the Court of Common Pleas of Allegheny County held that Act 55, not the HUP test, should apply to tax exemptions filed after 1998, the effective date of Act 55.20 This Court disagreed. We disallowed the tax exemption, and in doing so reasoned that tax exemption requests should be reviewed under, first, the HUP test and, second, under the Act 55 procedures. Community Options, Inc. v. Board of Property Assessment, Appeals and Review, 764 A.2d 645 (Pa.Cmwlth.2000) (Community Options I). The Supreme Court reversed this Court, finding that we misapplied the HUP test. It held that the taxpayer was eligible for a tax exemption for all the years in question, both before and after the enactment of Act 55.
The Supreme Court did not reach the issue of whether Act 55 should replace the HUP test after 1998. It explained as follows:
Appellee the Borough of Churchill ... argued in its cross-appeal before the Commonwealth Court that, since Appellant did not meet the constitutional definition of “purely public charity” as set forth in the Hospital Utilization Project test, it was unnecessary to consider whether it met the statutory definition of “purely public charity” as outlined in [Act 55]. The Commonwealth Court agreed and reversed the trial court as to that issue. In its brief to this Court, Appellant responds by arguing that “the Commonwealth Court ignored the definition of purely public charity provided by the legislature in [Act 55] and did not give the legislature the deference to which it is entitled.” Brief for Appellant at 20.
However, we need not reach this argument because we have rejected the Commonwealth Court’s reasoning in Community Service Foundation and the conclusion that Appellant is not a “purely public charity” under the Hospital Utilization Project test.
571 Pa. at 682-683, 813 A.2d at 687 (emphasis added).21 In short, Community *910Options II did not reach the issue of whether the HUP test trumps Act 55.22
Even if the majority were correct in its premise that every taxpayer seeking an exemption as a purely public charity must, first, undergo the judicially created HUP test, that premise is not dispositive of the question in this appeal, which is what evidence must be presented by a low-income housing provider. WRC’s evidence proved that its operations were identical to those of G.D.L. Plaza, entitling it to avail itself of the Supreme Court’s holding in G.D.L. Plaza II. Thus, the evidence WRC presented did satisfy the five-part HUP test and demonstrated that was a purely public charity.
I agree with the majority on the analytical paradigm to be followed in every tax exemption case. First, the applicant must prove that it is a purely public charity. Second, the applicant must prove that it satisfies any conditions set forth in the tax statute to qualify for the exemption. This was the paradigm followed in G.D.L. Plaza II, and it is the paradigm followed by the dissent in its analysis of WRC’s application for a tax exemption.
Community Options II had nothing to do with federally subsidized low-income housing providers, and in no way did it limit or overrule the holding in G.D.L. Plaza II.
Conclusion
This Court is required to presume the constitutionality of legislative enactments, such as Act 55 and Section 204(a)(3) of the Assessment Law, and to give them effect. City of Philadelphia v. Commonwealth, 575 Pa. 542, 573, 838 A.2d 566, 585 (2003). Because each enactment codifies holdings of our Supreme Court on what constitutes a purely public charity, they cannot be unconstitutional. Nevertheless, the majority treats each enactment as a nullity, and along the way disregards the binding precedent of our Supreme Court in G.D.L. Plaza II.
The binding precedent of G.D.L. Plaza II is reason enough to reverse the trial court. For that reason alone, I would reverse and grant WRC an exemption pursuant to Section 204(a)(3) of the Assessment Law.

. WRC does not need to repay the loan if the housing continues to be occupied by low-income elderly and handicapped persons for 40 years.

. This oversight includes, inter alia, the following: (1) a monthly certification of the current resident population at North Fork Heights, (2) an annual recertification to qualify as a participant in the Section 202 Program, (3) HUD’s annual, or more frequent, survey to confirm Section 202 Program compliance, and (4) WRC’s submission of an annual budget for HUD's review and approval.

. As far as can be determined, this was the first time Jefferson County taxed WRC.

. For the most part, the record consisted of stipulated facts and documents. WRC also presented the testimony of its President, Frances Robuck Coons, and of its Director of Finance, Susan McFadden Schmader. The Board presented no evidence in rebuttal.

.Section 204 of the Tax Reform Code of 1971, Act of March 4, 1971, P.L. 6, as amended, 72 P.S. § 7204, states as follows:
The tax imposed by Section 202 [sales and use tax] shall not be imposed upon any of the following:
*904(10) The sale at retail to or use by (i) any charitable organization, volunteer firemen’s organization or nonprofit educational institution, or (ii) a religious organization for religious purposes of tangible personal property or services other than pursuant to a construction contract ...
72 P.S. § 7204 (emphasis added).

. The exemption for a § 501(c)(3) corporation from Pennsylvania's corporate net income tax is set forth in the definition of a “corporation” in the Tax Reform Code of 1971. It states as follows:
The [word corporation] does not include:
3. A corporation, trust, or other entity which is an exempt organization as defined by section 501 of the Internal Revenue Code of 1986 (26 U.S.C. § 501).
Section 401(1)(3) of the Tax Reform Code of 1971, 72 P.S. § 7401(1)(3).

. Accordingly, whether the legislature uses the term "charitable organization,” "501(c)(3) corporation” or "purely public charity,” to identify the exempt taxpayer, the result is the same. The taxpayer must show that it is a purely public charity. To be sure, for the General Assembly to establish a constitutional tax exemption, it is limited by the standards of Article VIII, Section 2.

. To be eligible, residents had to be at least 62 years of age or handicapped, and their assets could not exceed federally specified levels.

. The holding in G.D.L. Plaza II is not easy to parse. The Supreme Court held that G.D.L. Plaza was a purely public charity. In other words, the Supreme Court found G.D.L. Plaza to be an “institution of charity,” the words used in Section 204(a)(3) to designate a purely public charity. However, G.D.L. Plaza failed the next part of the Section 204(a)(3) test because it was not a charity "founded, endowed and maintained by public or private charity.” 72 P.S. § 5020-204(a)(3). The language "founded, endowed, and maintained by public or private charity” used in Section 204(a)(3) was another way of saying a “purely public charity” prior to the HUP decision. See, e.g., Appeal of Woods Schools Tax Exemption Case, 406 Pa. at 584, 178 A.2d at 602.

. If the government had to provide the same service and its costs would be higher than its subsidy, then it is relieved of some of its burden. City of Washington v. Board of Assessment Appeals of Washington County, 550 Pa. 175, 186, 704 A.2d 120, 125, n. 8 (1997).

. Indeed, the majority finds that WRC failed the same two HUP test factors that were failed by the low-income housing provider in G.D.L. Plaza I. The Supreme Court reversed this misapplication of the HUP test in G.D.L. Plaza II.

. The binding precedent of G.D.L. Plaza II defines the evidentiary burden of any other low-income housing provider taxpayer seek-mg an exemption. Stated otherwise, the applicant has to prove the existence of the facts found dispositive in G.D.L. Plaza II. By showing that its operations were identical to G.D.L. Plaza's operations, WRC satisfied its burden.

.A change in the language of a statute ordinarily indicates á change in legislative intent. Masland v. Bachman, 473 Pa. 280, 289, 374 A.2d 517, 521 (1977). The object of the construction of all statutes is to ascertain and effectuate the intention of the General Assembly. The clearest indication of legislative intent is generally the plain language of a statute. See, e.g., Bowser v. Blom, 569 Pa. 609, 617, 807 A.2d 830, 835 (2002).

. The majority offers no explanation of what the legislature meant by the phrase "shall remain a 'purely public charity’ and tax exempt....” Section 240(a)(3) of the Assessment Law, 72 P.S. § 5020-204(a)(3).

. The purpose, stated in Section 2(b) of Act 55, provides in full:
It is the intent of the General Assembly to eliminate inconsistent application of eligibility standards for charitable tax exemptions, reduce confusion and confrontation among traditionally tax-exempt institutions *908and political subdivisions and ensure that charitable and public funds are not unnecessarily diverted from the public good to litigate eligibility for tax-exempt status by providing standards to be applied uniformly in all proceedings throughout this Commonwealth for determining eligibility for exemption from State and local taxation which are consistent with traditional legislative and judicial applications of the constitutional term “institutions of purely public charity.”
10 P.S. § 372(b).

. Section 6 of Act 55 grants an institution exempt from taxation under the Tax Reform Code of 1971 a rebuttable presumption that it meets the substantive standards for a purely public charity set forth in Section 5 of Act 55. Section 6(a)(1) states:
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.
10 P.S. § 376(a)(1).

. Section 5(a) states:
An institution of purely public charily is an institution which meets the criteria set forth in subsections (b), (c), (d), (e) and (f). An institution which meets the criteria specified in this section shall be considered to be founded, endowed and maintained by public or private charity.
10 P.S. § 375(a). The criteria (b), (c), (d), (e) and (f) mirror the five factors that make up the HUP test.

. However, éven if Act 55 were applicable here, it would not change the outcome. WRC presented evidence sufficient to give it the benefit of the presumption that it was a purely public charity because it is a Section 501(c)(3) non-profit corporation. Because the Tax Assessment Board presented no evidence, it failed to rebut the presumption that WRC is a purely public charity under Act 5 5. However, this issue is not raised in this appeal.

. Where the operations of the low-income housing provider are materially different from those of G.D.L. Plaza, or WRC, the taxpayer will not be able to use the binding precedent of G.D.L. Plaza II. In that case, the taxpayer begins with a clean slate on the question of whether it is a purely public charity, and the standards and procedures in Act 55 would be appropriately employed to evaluate the tax exemption request. Stated otherwise, a taxpayer whose operations are unlike those of G.D.L. Plaza, or WRC, may not be entitled to "remain” a purely public charity.

. Act 55 codifies the substantive standards set forth in Hospital Utilization Project. What is new in Act 55 is the establishment of unified procedures by which to evaluate a tax exemption request that might be brought in any county. The Pennsylvania Constitution is silent on procedures, and this created the opportunity for the legislature to act. See Collins v. Commonwealth, 262 Pa. 572, 575, 106 A. 229, 230 (1919) (stating that “[i]f the Constitution is silent on the subject, the legislative authority, being uncontrolled, is supreme.”).
Act 55 does not effect a tax exemption. It provides the roadmap for determining whether an applicant is entitled to an exemption set forth in the substantive tax statute, such as the Assessment Law or the Sales and Use Tax Statute. If all existing exemptions were repealed, then Act 55 would never come into play. Act 55 complements other statutes, i.e., the tax statutes creating the exemption.

. The majority contends that this quoted passage refers to another issue. I disagree. In the Community Options litigation, the trial court held that Act 55 was the sole guide for determining, after 1998, whether an applicant for a tax exemption was a purely public charity. This Court rejected this reasoning. We held, in Community Options I, that, first, the HUP test and, second, the Act 55 test was to be applied to determine whether the appellant was a purely public charity. Appellant urged the Supreme Court to reject our Court's reasoning, but, as the above-quoted passage demonstrates, the Supreme Court did "not reach this argument” because it rejected our application of the HUP test.

. Of course, Act 55 and the HUP test use the same substantive standards. What is new in Act 55 is the procedure, which uses shifting burdens of proof, to apply those standards. The result should be the same under either test, which was the outcome in Community Options II.