PRINTER'S NO. 2765
No. 2134 Session of 1976
INTRODUCED BY ZEARFOSS, BONETTO, WORRILOW AND BEREN,
FEBRUARY 9, 1976
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 9, 1976
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," further providing for the
21 payment of taxes on leased land.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. Subsection (c) of section 2002, act of April 9,
25 1929 (P.L.177, No.175), known as "The Administrative Code of
26 1929," added March 13, 1974 (P.L.194, No.37), is amended to
27 read:
1 Section 2002. Powers and Duties of the Department.--* * *
2 (c) Any other provision of law to the contrary
3 notwithstanding, the secretary may lease real property acquired
4 for any State designated highway or other transportation
5 facility as is not required for the free movement of traffic,
6 upon the following terms and conditions in each case:
7 (1) The lessee shall be a public agency, but such public
8 agency may sublease to another public agency or, if there be no
9 such agency desiring to sublease, then to one or more private
10 entities: Provided, That such private entities whether they
11 sublease from a public agency or lease directly from the
12 secretary shall make payments in lieu of taxes to the political
13 subdivisions in which such leased property is located in an
14 amount equal to the annual taxes that would normally be due on
15 such property, if taxable: And provided, further, That the
16 secretary may lease directly to a private entity during the
17 interim period between property acquisition and construction.
18 (2) Each such sublease or lease to private entities executed
19 or renewed subsequent to the effective date of this act shall be
20 deemed to include provisions requiring such payments in lieu of
21 taxes. The payments shall be made to the secretary or his
22 designated agent, shall be due and payable on the same dates
23 payments of real estate taxes on property subject to such taxes
24 are due under applicable laws governing payment of such taxes to
25 the political subdivisions involved, and each such subtenant or
26 tenant shall be entitled and subject to the same discounts,
27 penalties and interest as provided by such applicable laws. As
28 it is impossible to determine at the beginning of a political
29 subdivision's tax year whether any private entity who subleases,
30 leases or otherwise occupies any such property will lease,
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1 sublease or occupy the same for the full tax year, such private
2 entity shall be billed for and shall be obligated to pay the
3 payment in lieu of taxes due for the full tax year. If such
4 private entity subleases, leases or occupies such property for
5 less than the full tax year of any taxing body for which it has
6 paid the full amount for which it has been billed, it shall
7 receive a refund pro rated upon the number of days during such
8 tax year during which it fails to either lease, sublease or
9 occupy said property, whichever is the less.
10 (3) It shall be the responsibility and duty of the secretary
11 to send bills to the private entities for the amounts due from
12 them, after being advised by the political subdivisions of the
13 amounts due, including discounts, penalties and interest and the
14 dates such discounts, penalties and interest take effect. It
15 shall be the responsibility and duty of the secretary to collect
16 the payments due from private entities by the institution of
17 suit or other legal means in the event such payments are not
18 voluntarily made. The secretary shall pay the amounts collected
19 by him to the political subdivisions on July 31 and January 31
20 each year. In the event the secretary does not send bills to the
21 private entities within sixty days after being advised by the
22 political subdivisions of the amounts due, including discounts,
23 penalties and interest and the dates such discounts, penalties
24 and interest take effect, or does not attempt to collect
25 payments due from such private entities by the institution of
26 suit or other legal means, the political subdivisions shall have
27 the right to send such bills and collect the payments due by the
28 institution of suit or other legal means.
29 (4) All provisions hereof governing payments in lieu of
30 taxes and the collection thereof shall apply to private entities
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1 who occupy real property acquired for any State designated
2 highway or other transportation facility not required for the
3 free movement of traffic, or who occupy real property during the
4 interim period between property acquisition and construction,
5 notwithstanding the fact that such private entities have not
6 entered into leases with the secretary or subleases with a
7 public agency.
8 [(2)] (5) The lessee or sublessee shall pay all costs
9 incident to:
10 (i) alteration or construction for its own use of the leased
11 area;
12 (ii) any change in the highway or other transportation
13 facility occasioned by such use;
14 (iii) relocation or replacement of public utility
15 facilities, not exceeding the capacity of those occupying the
16 leased area at the time of lease, occasioned by such use;
17 (iv) relocation or replacement of the related facilities of
18 a consumer of public utility services occasioned by any required
19 relocation of the facilities of the serving utility; and
20 (v) relocation or replacement of the facilities of an
21 occupant of property abutting the highway or other
22 transportation facility occasioned by any alteration,
23 construction, change, relocation or replacement described in the
24 foregoing subclauses (i), (ii) and (iii).
25 Revenue derived from any lease of land originally acquired
26 for highway purposes shall be deposited in the Motor License
27 Fund.
28 * * *
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