THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY McGEEHAN, B. BOYLE, K. BOYLE, BROWNLEE, CALTAGIRONE, DONATUCCI, JOSEPHS, KOTIK, M. O'BRIEN, PAYNE, TAYLOR AND YOUNGBLOOD, OCTOBER 18, 2011

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, OCTOBER 18, 2011  

AN ACT

Amending the act of May 22, 1933 (P.L.853, No.155), entitled "An

act relating to taxation; designating the subjects, property

and persons subject to and exempt from taxation for all local

purposes; providing for and regulating the assessment and

valuation of persons, property and subjects of taxation for

county purposes, and for the use of those municipal and

quasi-municipal corporations which levy their taxes on county

assessments and valuations; amending, revising and

consolidating the law relating thereto; and repealing

existing laws," further providing for valuation of property.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 402(b) of the act of May 22, 1933

(P.L.853, No.155), known as The General County Assessment Law,

amended July 15, 2004 (P.L.746, No.91), is amended to read:

Section 402.  Valuation of Property.--* * *

(b)  (1)  [Except as to counties of the first and second

class, after any county] Notwithstanding any other provision of

law or any provision of a home rule charter or administrative

code of a city of the first class, after a county of the first

class makes a county-wide revision of assessment of real

property at values based upon an established predetermined ratio

as required by law or after [any] the county changes its

established predetermined ratio, [each political subdivision] a

city, which hereafter for the first time levies its real estate

taxes for both city and school district purposes on that revised

assessment or valuation, shall, for the first year, reduce its

tax rate, if necessary, for the purpose of having the total

amount of taxes levied for that year against the real properties

contained in the duplicate for the preceding year, equal[, in

the case of any taxing district,] the total amount it levied on

such properties the preceding year, notwithstanding the

increased valuations of such properties under the revised

assessment. The tax rate shall be fixed at a figure which will

accomplish this purpose.

(2)  After establishing a tax rate under clause (1), [a

political subdivision may, by a separate and specific vote] the

city may, by separate and specific votes, establish a final tax

rate for the first year it levies its real estate taxes for city

and school district purposes on a revised assessment or

valuation. The tax rate under this clause shall be fixed at a

figure which limits the total amount of taxes levied for that

year against the real properties contained in the duplicate for

the [preceding] year preceding the revised assessment or

valuation to not more than [ten] five per centum greater than

the total amount it levied on such properties the preceding

year, notwithstanding the increased valuations of such

properties under the revised assessment.

(3)  For the purpose of determining the total amount of taxes

to be levied for said first year under clauses (1) and (2), the

amount to be levied on newly constructed buildings or structures

or on increased valuations based on new improvements made to

existing houses need not be considered.

(4)  With the approval of the court of common pleas, upon

good cause shown, [any such political subdivision] the city may

increase the tax rate herein prescribed, notwithstanding the

provisions of this subsection.

(5)  Nothing in this section shall be construed as

authorizing the establishment of caps on any increased amounts

of property taxes due for individual properties.

* * *

Section 2.  This act shall take effect in 60 days.