PRINTER'S NO. 2490
No. 1954 Session of 1987
INTRODUCED BY MURPHY, KUKOVICH, MICHLOVIC, COWELL, CAWLEY,
GEIST, MAIALE, BELARDI, RAYMOND, WILSON, WOZNIAK, PISTELLA
AND VAN HORNE, NOVEMBER 17, 1987
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 17, 1987
AN ACT
1 Providing for an original and cyclical annual assessment and
2 review of tax-exempt property; providing municipal service
3 charge; and providing fixed assessment for senior citizens.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Definitions.
7 The following words and phrases when used in this act shall
8 have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 "Assessed value." The current assessed value of real
11 property as certified by the chief assessor of the county.
12 "Board." The county commissioners, board of revision of
13 taxes or board for the assessment and revision of taxes.
14 "Chief assessor." The chief assessor of each county.
15 "Dormant tax-exempt property." Any tax-exempt property,
16 including publicly owned land, that has lain dormant for a
17 period of three years or more.
18 "Local tax collector." The appropriate municipal officer
1 authorized to collect real property taxes.
2 "Municipal service charge." The charge authorized by this
3 act to be imposed by municipalities on otherwise tax-exempt
4 property within their jurisdiction.
5 "Municipal services." Services provided by municipalities
6 which are funded in whole or in part by real estate taxes and
7 for which special fees, charges or assessments are not made to
8 recover the costs of providing such services.
9 "Person." Any individual, firm, partnership, association,
10 company, corporation or organization or any other group to which
11 this act applies.
12 "Tax-exempt property." Real property exempted by the
13 applicable assessment laws from the payment of real property
14 taxes on all or a part of a parcel of real estate, including
15 publicly owned property.
16 "Tax liability." The amount of taxes on tax-exempt property
17 that would be due and owing a municipality if the property were
18 not tax exempt.
19 "Tax-levying body." Any county, municipality or school
20 board.
21 Section 2. Annual assessment of tax-exempt property.
22 (a) Three-year assessment.--All tax-exempt property shall be
23 assessed every three years in the same manner as is taxable
24 property in each county of this Commonwealth. The chief assessor
25 of each county shall prepare and submit to the appropriate tax
26 board an assessment roll of tax-exempt property, together with
27 the value placed on each parcel or tract of real property, on
28 which taxes would be due and owing a municipality if the
29 property were not tax exempt.
30 (b) Certificate.--Any real property or part and parcel
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1 thereof determined to be tax exempt shall have a tax-exempt
2 certificate issued to the owner of such property identifying and
3 certifying it as tax exempt under this act. The certificate
4 shall be valid only for a period of three years and only as long
5 as the ownership or use of property upon which the exemption was
6 conditioned is not changed.
7 (c) Public vote; issuance; appeal.--The certificate under
8 subsection (b) shall be issued by the tax-levying body in which
9 the property is located. The governing body of each tax-levying
10 body shall establish a process whereby all property to be
11 considered for tax-exempt status is performing the purposes that
12 qualify it for tax-exempt status pursuant to section 2 of
13 Article VIII of the Constitution of Pennsylvania. The governing
14 body shall show, for each property considered for tax-exempt
15 status, the amount of taxes that would be generated if this
16 property were to be taxed according to current millage and
17 assessment rates, by publication in a newspaper of general
18 circulation. When voting whether or not to grant tax-exempt
19 status, the governing body shall vote in a public forum,
20 pursuant to the act of July 19, 1974 (P.L.486, No.175), referred
21 to as the Public Agency Open Meeting Law. A simple majority vote
22 of all members shall constitute approval. Any party that does
23 not agree with the decision rendered by the body may petition
24 the body to conduct a public hearing on the matter upon securing
25 and presenting to the governing body a petition containing 100
26 signatures. Any party otherwise aggrieved by the decision
27 rendered by the governing body shall have 30 days to appeal to
28 the court of common pleas in the county in which the property is
29 located.
30 (d) Denial.--In the event of a change in the zoning of the
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1 area in which the tax-exempt property is located or the granting
2 of a variance, the governing body may rightfully deny the tax-
3 exempt status if it determines it is not in the public's
4 interest.
5 (e) Listing.--The county assessor shall record and make
6 available to the public a listing of tax-exempt properties
7 according to the type of the property, the value of the
8 property, the percentage each property represents to the total
9 and the taxing jurisdiction in which the property is located.
10 (f) Review.--Every three years the tax-levying body shall
11 review tax-exempt property to determine whether such properties
12 continue to provide services for which the exemption was
13 granted.
14 Section 3. Municipal service charge.
15 (a) Levy.--A municipal service charge for public services
16 provided to the tax-exempt property may be levied annually by
17 ordinance of the municipal body upon all real estate within its
18 jurisdiction which is exempted from taxation within its
19 jurisdiction. This service charge shall be collected by the
20 municipal tax collector.
21 (b) Failure to pay.--Any person who fails to pay the
22 municipal service charge imposed by this act shall be subject to
23 statutory interest, penalties and liens for nonpayment of
24 municipal real property taxes.
25 (c) Exclusion.--Expenditures for services not provided for
26 certain real estate shall not be applicable to the calculation
27 of a service charge for such real estate.
28 (d) Limit.--Service charges shall not exceed the amount of
29 tax which would be received on the assessed value were it not
30 exempt.
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1 (e) Classes.--Each municipality shall establish different
2 classes of a municipal service charge to be levied depending
3 upon the degree of its use of municipal services, the amount of
4 public and charitable work that it does, and other pertinent and
5 relative factors that the municipality believes to be
6 applicable.
7 (f) Religious or educational property.--A municipal service
8 charge shall not be levied against any actual place of worship
9 or elementary or high school in this Commonwealth, if such
10 places of worship and schools provide religious or educational
11 services on a regular basis.
12 Section 4. Assessment of real property of senior citizens.
13 (a) Priority.--Funds derived from this act shall first be
14 used to provide that the assessment of real property owned by a
15 person 62 years of age or older, by a husband and wife where the
16 principal wage earner is 62 years of age or older, or by a widow
17 55 years of age or older shall not be increased as long as the
18 real property is used by the owner or owners as the residence of
19 such owner or owners. In addition, millage increases shall be
20 inapplicable to those qualifying under this section.
21 (b) Affidavit.--In order to qualify for the provisions of
22 subsection (a), the owner or owners must file an affidavit with
23 the board for the assessment and revision of taxes on a form
24 prepared and supplied by each county, stating under oath:
25 (1) That such person is the owner of record.
26 (2) That the property is used as his or her residence.
27 (3) The address of the property, the municipality in
28 which it is located, its lot and block, and its present
29 assessed valuation.
30 (4) That the person is 62 years of age or older, or if
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1 the property is owned by a husband and wife, that the
2 principal wage earner is 62 years of age or older, or if a
3 widow, that she is 55 years of age or older.
4 (5) That the property in question is not rental property
5 nor used in whole or in part for commercial purposes.
6 (6) That the combined income, earned and unearned, does
7 not exceed $15,000 per year.
8 (c) Exception.--This section shall not apply to property
9 used for rental or commercial purposes.
10 (d) Renewal.--The assessment of any property subject to this
11 section shall not be increased as long as the owner and the
12 subject property continue to qualify under the provisions of
13 this section; however, it shall be the owner's obligation to
14 renew the affidavit required in subsection (b) by notifying the
15 board in writing each year that the property continues to
16 qualify. Failure to file the yearly renewal shall terminate the
17 assessment freeze.
18 (e) Transfer.--When the property subject to this section is
19 sold or passes by inheritance, the property shall be reassessed
20 within six months in accordance with the standards and
21 procedures applicable to other property in the municipality.
22 Section 5. Action on dormant tax-exempt property.
23 All tax-levying jurisdictions shall have the ability to
24 direct owners of dormant tax-exempt property to furnish them
25 with plans that provide for the development and utilization of
26 the property for charitable and public use. If such plans are
27 not provided, the tax-levying body shall revoke the tax-exempt
28 status of such property and shall levy and collect taxes at the
29 current assessed value and millage rates of their jurisdiction.
30 Section 6. Applicability.
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1 This act applies to land owned by all levels of government,
2 including land owned by the Commonwealth.
3 Section 7. Effective date.
4 This act shall take effect in 90 days.
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