PRINTER'S NO. 1267
No. 1121 Session of 1997
INTRODUCED BY COY, BARD, HERMAN AND LESCOVITZ, APRIL 2, 1997
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 2, 1997
AN ACT
1 Amending the act of June 27, 1947 (P.L.1046, No.447), entitled,
2 as amended, "An act providing for equalization of assessed
3 valuations of real property throughout the Commonwealth for
4 use in determining the amount and allocation of Commonwealth
5 subsidies to school districts; providing for the establishing
6 of a common level ratio for each county; creating a State Tax
7 Equalization Board; and prescribing its powers and duties;
8 imposing duties on certain local officers, agents, boards,
9 commissions and departments; and making an appropriation,"
10 further providing for powers and duties of the State Tax
11 Equalization Board, for monthly reports, for annual reports,
12 for certification, for adjusting valuations, for subsidies,
13 for special aid to school districts and for the common level
14 ratio.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Section 1 of the act of June 27, 1947 (P.L.1046,
18 No.447), referred to as the State Tax Equalization Board Law, is
19 amended to read:
20 Section 1. [Creation of Board.--There is hereby created an
21 independent administrative board which shall be known as the
22 State Tax Equalization Board, hereinafter referred to as the
23 board.] Short Title.--This act shall be known and may be cited
24 as the "State Tax Equalization Board Law."
1 Section 2. The act is amended by adding sections to read:
2 Section 1.1. Definitions.--The following terms whenever used
3 or referred to in this act shall have the following meanings,
4 except in those instances where the context clearly indicates
5 otherwise:
6 (1) The term "board" shall mean the State Tax Equalization
7 Board.
8 (2) The term "city" shall mean, except when it is used in
9 section 17.1(d)(2) of this act, a city that assesses real
10 property independently of the county assessment process and
11 which is either a third class city or a city which would be a
12 city of the third class but for the adoption of a home rule
13 charter under the act of April 13, 1972 (P.L.184, No.62), known
14 as the "Home Rule Charter and Optional Plans Law." As used in
15 section 17.1(d)(2), the term shall mean a city of the third
16 class which does not assess real property independently of the
17 county assessment process.
18 (3) The term "council" shall mean the governing body of a
19 third class city, or the legislative policy-making body in a
20 city which would be a city of the third class but for the
21 adoption of a home rule charter under the act of April 13, 1972
22 (P.L.184, No.62), known as the "Home Rule Charter and Optional
23 Plans Law."
24 (4) The term "real estate registry office" shall mean the
25 office established in a city of the third class under the act of
26 June 23, 1931 (P.L.932, No.317), known as "The Third Class City
27 Code," or a like office in a city which would be a city of the
28 third class but for the adoption of a home rule charter under
29 the act of April 13, 1972 (P.L.184, No.62), known as the "Home
30 Rule Charter and Optional Plans Law."
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1 (5) The term "secretary" shall mean the Secretary of
2 Education of the Commonwealth.
3 Section 1.2. Creation of Board.--There is hereby created an
4 independent administrative board which shall be known as the
5 State Tax Equalization Board, hereinafter referred to as the
6 board.
7 Section 3. Section 7 of the act, amended or added April 6,
8 1949 (P.L.404, No.52), December 30, 1959 (P.L.2072, No.760) and
9 December 13, 1982 (P.L.1158, No.267), is amended to read:
10 Section 7. General Powers and Duties of the Board.--The
11 board shall have the power and its duties shall be--
12 (1) To determine the market value of taxable real property
13 in each of the school districts and to conduct investigations,
14 require information and have access to whatever public records
15 are necessary in making each such determination.
16 (2) To require, in counties of the first class, the board of
17 revision of taxes of such county, [and] the county commissioners
18 of each county other than a county of the first class, and the
19 city council, to furnish to it, monthly, a list of all
20 conveyances or other transfers of real estate, or any interest
21 therein, recorded within such city or county during the
22 preceding month, stating the value of the Federal tax stamps
23 affixed to the deed for each such conveyance, and the assessed
24 valuations for city or county tax purposes of such real estate.
25 (3) To certify to the [Superintendent of Public Instruction]
26 secretary, not later than the first day of July of each odd
27 numbered year, a list of all school districts, showing the
28 market value of taxable real property, and the assessed
29 valuation for county tax purposes, and to furnish to the board
30 of school directors of each school district as much of such
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1 information as pertains to such school district. In even
2 numbered years, the board shall certify only those changes in
3 market values which result from properties going on or off the
4 assessment rolls for school purposes. The first lists shall be
5 furnished not later than the first day of July, one thousand
6 nine hundred forty-nine.
7 (4) To hear and decide appeals of parties who may feel
8 aggrieved by any finding or conclusion of the board.
9 (5) To investigate the finances and any other general
10 circumstances of any school district requesting special aid from
11 the [Superintendent of Public Instruction] secretary, and to
12 advise the [Superintendent of Public Instruction] secretary in
13 making grants of special aid.
14 (6) To make surveys and investigations of the finances of
15 school districts in the interest of a more equitable
16 distribution of school support.
17 (7) To subpoena State and local officials and to require
18 from them such information as may be necessary for the proper
19 discharge of its duties.
20 (8) To have and exercise all of the powers and perform all
21 the duties imposed upon independent administrative boards by the
22 Administrative Code of 1929, and its amendments.
23 (9) To establish, annually, prior to July 1, a common level
24 ratio of assessed value to market value in each city and county
25 for the prior calendar year.
26 (10) To promulgate rules and regulations necessary to
27 establish standards and procedures to govern the assessment
28 process uniformly throughout this Commonwealth.
29 Section 4. Section 9 of the act, amended April 6, 1949
30 (P.L.404, No.52) and July 25, 1967 (P.L.182, No.54), is amended
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1 to read:
2 Section 9. Monthly Reports by Cities and Counties;
3 Commonwealth Payments.--(a) It shall be the duty of the board
4 of revision of taxes in all counties of the first class [and
5 of], the county commissioners of each county other than a county
6 of the first class, and the city council of each city on the
7 fifteenth day of each month to prepare, certify and deliver to
8 the board for its use and in such form and manner as the board
9 may prescribe a list of all conveyances or other transfers of
10 real estate, or any interest therein, recorded within [the
11 county] its jurisdiction during the preceding month, stating the
12 value of the [Federal] tax stamps affixed to the deed for each
13 such conveyance or transfer as set forth within such instrument,
14 and the assessed valuation for [county] tax purposes of such
15 real estate. Pursuant to the requirements of this section, [the
16 recorder of deeds of each county of the first class shall
17 prepare and deliver to the board of revision of taxes of such
18 county and in all other counties the recorder of deeds of each
19 such other county shall prepare and deliver to the county
20 commissioners] at the end of each month[,] a list of all the
21 real estate so conveyed or transferred within [such county] that
22 jurisdiction during such month, stating the value of [Federal]
23 tax stamps affixed to the instrument so conveying or
24 transferring such real estate, or any interest therein[.], shall
25 be prepared and delivered to the following:
26 (1) The board of revision of taxes of a county of the first
27 class, by the recorder of deeds of that county.
28 (2) The county commissioners of a county other than a county
29 of the first class, by the recorder of deeds of that county.
30 (3) The city council of a city, by the real estate registry
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1 office of that city.
2 (b) The board shall pay to the board of revision of taxes of
3 counties of the first class [and], to the county commissioners
4 of each county other than a county of the first class, and to
5 the city council of each city the sum of twenty cents (20¢) for
6 each such conveyance or transfer of real estate on each list so
7 prepared, certified and delivered to the board for its use.
8 Section 5. Sections 10 and 12 of the act are amended to
9 read:
10 Section 10. Annual Reports of Local Assessing Officials.--On
11 or before the first day of June, one thousand nine hundred
12 forty-eight and on or before the first day of June of every year
13 thereafter, the board of revision of taxes of counties of the
14 first class, the board of property assessment appeals and review
15 of counties of the second class, the board for the assessment
16 and revision of taxes of counties of the third class and the
17 county commissioners of all other counties shall file a
18 certificate with the board, in such form as it may prescribe and
19 on blanks to be furnished by it, showing the assessed valuation
20 of all real property in each school district in the county on
21 which the taxes for the then current year are levied. [In the
22 year one thousand nine hundred forty-eight such certificates
23 shall be filed both with the Superintendent of Public
24 Instruction, as now required by law, and with the board as
25 required hereby. But thereafter no] No certificate shall be
26 required to be filed with the [Superintendent of Public
27 Instruction] secretary.
28 Section 12. Certification to [Superintendent of Public
29 Instruction] Secretary and School Districts.--As soon as the
30 market value of the real property in each school district
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1 throughout the Commonwealth has been determined and the
2 percentage of such value of the assessed valuation for county
3 tax purposes has been established, the board shall certify the
4 same to the [Superintendent of Public Instruction] secretary and
5 as to each school district to the board of school directors
6 thereof.
7 Section 6. Sections 14 and 15 of the act, amended December
8 30, 1959 (P.L.2072, No.760), are amended to read:
9 Section 14. Annual Adjustments of Valuations.--On or before
10 the first day of July, one thousand nine hundred forty-nine and
11 on or before the first day of July of each odd numbered year
12 thereafter, the board shall adjust the market value of real
13 property in each school district to conform with such new data
14 as may have been accumulated since the market values for the
15 last preceding two years were determined, and shall determine
16 the percentage of such market value of the assessed valuation of
17 all real property in the district on which county taxes for the
18 then current year are levied. Such market values, percentages
19 and adjustments shall be certified to the [Superintendent of
20 Public Instruction] secretary and the several school districts,
21 as hereinbefore provided, with the same rights to school
22 districts to hearings and determinations by the board.
23 Section 15. Determination and Apportionment of Commonwealth
24 Subsidies.--As soon as possible each odd numbered year, after
25 the final adjustment of values by the board, the board shall
26 certify to the [Superintendent of Public Instruction] secretary
27 the market value of all real property in each school district in
28 the Commonwealth. Beginning with payment to be made for the
29 school year one thousand nine hundred forty-nine--one thousand
30 nine hundred fifty, each school district's assessed valuation to
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1 be used for purposes of computing its standard reimbursement
2 fraction shall be the market value of the taxable real property
3 in the school district as finally adjusted and determined upon
4 by the board, and not the assessed valuation for county tax
5 purposes as now provided by law. Beginning with the year one
6 thousand nine hundred forty-nine and every two (2) years
7 thereafter, in place of the valuations now required by law to be
8 used for such purposes, the market value of the real property in
9 each school district, as finally adjusted and determined upon by
10 the board, shall be used by the [Superintendent of Public
11 Instruction] secretary in ascertaining and determining the
12 amount of funds required to meet payments to school districts
13 and vocational school districts which become due and payable by
14 law within the two fiscal years beginning June first, one
15 thousand nine hundred forty-nine and ending May thirty-first,
16 one thousand nine hundred fifty-one, and each biennium
17 thereafter, and to apportion and allot the same to and among the
18 respective school districts.
19 Section 7. Section 16 of the act is amended to read:
20 Section 16. Special Aid to School Districts.--Before
21 granting any special aid to any school district, the
22 [Superintendent of Public Instruction] secretary shall submit
23 the request therefor to the board. The board shall make its
24 recommendations with respect thereto, in so far as the same is
25 affected by the district's ability to raise funds by taxation.
26 Before making any such recommendation, the board shall carefully
27 investigate and study the financial circumstances of the
28 district and whether or not it has exhausted its available
29 taxing power not only on real property, but also on all other
30 available property and subjects of taxation, and that collection
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1 of such taxes is being effectively made and enforced. Such
2 recommendations shall be for the advice of the [Superintendent
3 of Public Instruction] secretary in passing on such requests.
4 Section 8. Section 16.1 of the act, added December 13, 1982
5 (P.L.1158, No.267), is amended to read:
6 Section 16.1. Establishment of a Common Level Ratio.--(a)
7 The State Tax Equalization Board shall, annually, prior to July
8 1, establish for each city and county a common level ratio for
9 the prior calendar year.
10 (b) In arriving at such ratio, the board shall use
11 statistically acceptable techniques, including sales ratio
12 studies. The board's method in arriving at the ratio shall be
13 made available to the public. The ratio shall be certified to
14 the chief assessor of each county and it shall be admissible as
15 evidence in any appeal involving real property tax assessments.
16 (c) Any political subdivision or taxpayer aggrieved by any
17 finding, conclusion or any method or technique of the board made
18 pursuant to this section may, in writing, state objections
19 thereto and may appeal de novo such ratio determination to the
20 Commonwealth Court. After receiving any objections, the board
21 may grant a hearing and may modify or adjust its findings and
22 computations as it shall appear proper.
23 (d) When a county has effected a countywide revision of the
24 assessment which was used to develop the common level ratio last
25 determined by the board, the following applies:
26 (1) If a county changes its assessment base by applying a
27 change in predetermined ratio, the county shall apply the
28 percentage change between the existing predetermined ratio and
29 newly established predetermined ratio to the county's common
30 level ratio to establish the certified revised common level
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1 ratio for the year in which the assessment was revised.
2 (2) If a third class city changes its assessment base by
3 applying a change in the city's predetermined established ratio,
4 the city shall apply the percentage to the county's common level
5 ratio to establish the certified revised common level ratio for
6 the year in which the assessment was revised.
7 (3) If the county performs a countywide revision of
8 assessments by revaluing the properties and applying an
9 established predetermined ratio, the county shall utilize the
10 established predetermined ratio instead of the common level
11 ratio for the year in which the assessment was revised and until
12 such time as the common level ratio determined by the State Tax
13 Equalization Board reflects the revaluing of properties
14 resulting from the revision of assessment.
15 (4) If a third class city which assesses property
16 independently from the county in which it is located performs a
17 citywide revision of assessments by revaluing the properties and
18 applying the city's established predetermined ratio, the city
19 shall utilize its established predetermined ratio instead of the
20 city's common level ratio for the year in which the assessment
21 was revised and until such time as the common level ratio as
22 determined by the board reflects the revaluing of properties
23 from the revision of assessments.
24 Section 9. This act shall take effect in 60 days.
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