Bill Text: PA SB1301 | 2011-2012 | Regular Session | Amended

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Bill Title: In assessments of persons and property, providing for cities and counties of the first class, further providing for definitions and for administration and procedure and providing for applicability.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2012-07-05 - Act No. 131 [SB1301 Detail]

Download: Pennsylvania-2011-SB1301-Amended.html

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HOUSE AMENDED
PRIOR PRINTER'S NOS. 1725, 1803, 2179 PRINTER'S NO. 2334
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1301 Session of2011
INTRODUCED BY WILLIAMS, KITCHEN, STACK, HUGHES, WASHINGTON, FARNESE AND TARTAGLIONE, OCTOBER 26, 2011
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 26, 2012
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in assessments of persons and
property, providing for cities and counties of the first <--
class, further providing for definitions and for <--
administration and procedure; and providing for <--
applicability.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "board" in section 8582 of <--
Title 53 of the Pennsylvania Consolidated Statutes is amended to
read:
Section 1. The heading of Chapter 85 of Title 53 of the <--
Pennsylvania Consolidated Statutes is amended to read:
CHAPTER 85
ASSESSMENTS OF PERSONS AND PROPERTY
Subchapter
A. through [D] C. (Reserved)
D. Cities and Counties of the First Class
E. Real Estate Tax Deferral
F. Homestead Property Exclusion
SUBCHAPTERS A through [D] C
(Reserved)
Section 1.1. Chapter 85 of Title 53 is amended by adding a
subchapter to read:
SUBCHAPTER D
CITIES AND COUNTIES OF THE FIRST CLASS
Sec.
8561. Scope of subchapter.
8562. Definitions.
8563. (Reserved).
8564. (Reserved).
8565. Assessments and appeals for certain tax years.
§ 8561. Scope of subchapter.
This subchapter relates to assessments in cities and counties
of the first class.
§ 8562. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Act 1939-404." The act of June 27, 1939 (P.L.1199, No.404),
entitled "An act relating to the assessment of real and personal
property and other subjects of taxation in counties of the first
class; providing for the appointment of members of the board of
revision of taxes by the judges of the courts of common pleas;
providing for the appointment, by the board, of personal
property assessors, real estate assessors and assistant real
estate assessors, clerks and other employes; fixing the salaries
of members of the board, assessors and assistant assessors, and
providing for the payment of salaries and expenses from the
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county treasury; prescribing the powers and duties of the board
and of the assessors, the time and manner of making assessments,
of the revision and notice of assessments and of appeals
therefrom; prescribing the records of assessments; and repealing
existing laws."
"Assessment office." The office of property assessment in a
city.
"Board." The board of revision of taxes or a successor body
authorized by a city to determine assessment appeals in a city.
"City." A city of the first class.
"Common level ratio." The ratio of assessed value to market
value as determined by the State Tax Equalization Board under
the act of June 27, 1947 (P.L.1046, No.447), referred to as the
State Tax Equalization Board Law.
"County." A county of the first class.
"Established predetermined ratio." The ratio of assessed
value to market value established under Act 1939-404 and
uniformly applied in determining assessed value in any year.
"Governing body." The governing body of a city.
"School district." A school district of the first class.
§ 8563. (Reserved).
§ 8564. (Reserved).
§ 8565. Assessments and appeals for certain tax years.
(a) Legislative findings.--The General Assembly finds and
declares as follows:
(1) Real estate tax assessment in a city has become
increasingly at variance with principles of uniformity and
sound assessment.
(2) The deficiencies under paragraph (1) have been
determined to be remedied by a citywide reassessment,
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sometimes referred to as the "actual value initiative."
(3) The reassessment of all properties located in a city
is likely to cause substantial shifts in tax liabilities
among various neighborhoods and groups of taxpayers. These
shifts are likely to increase substantially the tax burdens
on residential properties, particularly those properties with
low to medium values.
(4) As part of a reassessment, the governing body must
make a major revision to the applicable tax rates in order to
maintain tax revenues and fund any required tax increases.
The governing body must take into account enactment of a
homestead exclusion and perhaps other measures in order to
alleviate an increased tax burden on lower value residential
properties.
(5) The governing body cannot responsibly determine the
applicable tax rates without knowing the value of the tax
base to which the rates apply. Currently, a city's budget,
including tax revenues, must be enacted by each June 30; but
tax assessments are not finalized until the following
September.
(6) Implementation by a city of an actual value
initiative will be helped by requiring that assessed values
be determined prior to adopting the city's budget and by the
applicable assessment officials completing the task of
determining the tax base in the city.
(7) The common level ratio for a city applicable to tax
year 2012, certified by the State Tax Equalization Board and
published at 42 Pa.B. 2152 (April 14, 2012), has been
disputed and may be subject to further dispute. The common
level ratio for tax year 2013 may have similar uncertainties.
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The ratios for both years are determined by a State Tax
Equalization Board assessment tool new to the review of
properties in a city.
(8) The common level ratio for a city applicable to tax
year 2011, based on 2009 data and published at 40 Pa.B. 4069
(July 17, 2010), has not been disputed and is the same as the
applicable established predetermined ratio.
(9) Special provisions are necessary in order to address
the findings set forth in this subsection.
(b) Certification of values.--Notwithstanding any other
provision of law:
(1) For tax year 2013, the assessment office shall
certify assessed values at the assessed values certified for
tax year 2011, adjusted for subsequent improvements,
demolition and destruction. The assessed values certified for
tax year 2013 under this paragraph shall apply to all taxes
on, or measured by, assessed values levied by a city or a
school district for tax year 2013 notwithstanding any
contrary enactment of a city or a school district or any
contrary certification by a city, city agency or school
district.
(2) For tax years after tax year 2013, the assessment
office shall certify market values at actual market value. In
arriving at actual market value, the price at which any
property may actually have been sold shall be considered but
shall not be controlling. In arriving at the actual market
value:
(i) All three of the following valuation methods
shall be considered in conjunction with one another:
(A) Reproduction or replacement cost, as
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applicable, minus:
(I) depreciation; and
(II) all forms of obsolescence.
(B) Comparable sales.
(C) Income.
(ii) The valuation process may employ systems,
methodologies and technologies that meet nationally
recognized assessment standards.
(c) Timing of certification.--Notwithstanding any other
provision of law, for tax years after tax year 2013, the
assessment office shall certify assessed values by March 31 of
the preceding year.
(d) Application of established predetermined ratio.--
Notwithstanding any other provision of law, in any assessment
appeal under Act 1939-404 for tax year 2013, the board and any
applicable court of competent jurisdiction shall apply the
established predetermined ratio applicable to a city for tax
year 2011.
(e) Conflicts.--If there is a conflict between a provision
of Act 1939-404 and a provision of this section, the provision
of this section shall apply.
Section 1.2. The definition of "board" in section 8582 of
Title 53 is amended to read:
§ 8582. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Board." Any of the following:
(1) "Board." As defined in [the act of June 26, 1931,
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(P.L.1379, No.348), referred to as the Third Class County
Assessment Board Law.
(2) "Board." As defined in the act of May 21, 1943
(P.L.571, No.254), known as The Fourth to Eighth Class County
Assessment Law.] section 8802 (relating to definitions).
[(3)] (2) "Board of Property Assessment, Appeals and
Review." The Board of Property Assessment, Appeals and
Review in a county of the second class under the act of June
21, 1939 (P.L.626, No.294), referred to as the Second Class
County Assessment Law or a similar body established by a home
rule county.
[(4)] (3) "Board of Revision of Tax and Appeals." The
board of revision of taxes and appeals in cities of the third
class.
(4) The body with responsibility for the making of
assessments of real property in a city of the first class.
* * *
Section 2. Section 8584(b) and (c) of Title 53 are amended <--
to read:
§ 8584. Administration and procedure.
* * *
(b) Filing deadlines; renewal of application.--Applications
shall be filed with the assessor not later than March 1 of each
year; provided that, in a city of the first class, the
application shall be filed with the assessor not later than a
date set by the governing body, which date shall be no later
than December 1 of the year prior to the year in which the
exclusion shall first apply. The governing body of a county may
adopt a schedule for review or reapplication for real property
previously approved as homestead property or farmstead property.
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(c) Notice of applications and deadlines.--The assessor
shall provide sufficient notice to the public regarding the
availability of applications to designate real property as
homestead property or farmstead property and all filing
deadlines. The assessor shall make applications available at
least 75 days before the filing deadline; provided that, in a
city of the first class, the application shall be available at
least 60 days before the filing deadline.
* * *
Section 2 3. Title 53 is amended by adding a section to <--
read:
§ 8588. Applicability.
Notwithstanding the provisions of section 8405 (relating to
applicability), the provisions of this subchapter shall apply to
cities and counties of the first class and to school districts
of the first class. Any action taken pursuant to this subchapter
by the governing body of a city of the first class shall apply
to a city of the first class and to a school district of the
first class.
Section 3 4. This act shall take effect in 60 days <--
immediately. <--
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