PRIOR PRINTER'S NO. 1388 PRINTER'S NO. 1698
No. 1194 Session of 1983
INTRODUCED BY SHOWERS, COY, PHILLIPS AND MAIALE, JUNE 13, 1983
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, SEPTEMBER 19, 1983
AN ACT
1 Regulating tax escrow on Commonwealth leased real estate for <--
2 local taxing districts.
3 AMENDING THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), ENTITLED <--
4 "AN ACT PROVIDING FOR AND REORGANIZING THE CONDUCT OF THE
5 EXECUTIVE AND ADMINISTRATIVE WORK OF THE COMMONWEALTH BY THE
6 EXECUTIVE DEPARTMENT THEREOF AND THE ADMINISTRATIVE
7 DEPARTMENTS, BOARDS, COMMISSIONS, AND OFFICERS THEREOF,
8 INCLUDING THE BOARDS OF TRUSTEES OF STATE NORMAL SCHOOLS, OR
9 TEACHERS COLLEGES; ABOLISHING, CREATING, REORGANIZING OR
10 AUTHORIZING THE REORGANIZATION OF CERTAIN ADMINISTRATIVE
11 DEPARTMENTS, BOARDS, AND COMMISSIONS; DEFINING THE POWERS AND
12 DUTIES OF THE GOVERNOR AND OTHER EXECUTIVE AND ADMINISTRATIVE
13 OFFICERS, AND OF THE SEVERAL ADMINISTRATIVE DEPARTMENTS,
14 BOARDS, COMMISSIONS, AND OFFICERS; FIXING THE SALARIES OF THE
15 GOVERNOR, LIEUTENANT GOVERNOR, AND CERTAIN OTHER EXECUTIVE
16 AND ADMINISTRATIVE OFFICERS; PROVIDING FOR THE APPOINTMENT OF
17 CERTAIN ADMINISTRATIVE OFFICERS, AND OF ALL DEPUTIES AND
18 OTHER ASSISTANTS AND EMPLOYES IN CERTAIN DEPARTMENTS, BOARDS,
19 AND COMMISSIONS; AND PRESCRIBING THE MANNER IN WHICH THE
20 NUMBER AND COMPENSATION OF THE DEPUTIES AND ALL OTHER
21 ASSISTANTS AND EMPLOYES OF CERTAIN DEPARTMENTS, BOARDS AND
22 COMMISSIONS SHALL BE DETERMINED," FURTHER PROVIDING FOR THE
23 POWERS AND DUTIES OF THE DEPARTMENT OF TRANSPORTATION.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. (a) Whenever real property is leased by the <--
27 Commonwealth as owner and lessor to a tenant for nongovernmental
1 purposes, the lease shall provide for a sufficient amount in
2 escrow payable to the local taxing districts within which the
3 property is located for real estate taxes due for the term of
4 the lease. The tax escrow shall be deemed as payment in lieu of
5 taxes and shall be payable by the Commonwealth to the local
6 taxing districts upon request of the taxing authority.
7 (b) To establish tenant tax liability, the chief county
8 assessor shall establish an assessed valuation for leased
9 Commonwealth real property according to its actual leased use.
10 Payments in lieu of taxes will be made to the taxing
11 jurisdictions in amounts equal to the amount which would have
12 been levied on the properties if they were not tax exempt.
13 (c) The provisions of this act shall not apply to leases of
14 real property where the annual rental is $500 or less.
15 Section 2. This act shall take effect in 60 days.
16 SECTION 1. SECTION 2002(C) OF THE ACT OF APRIL 9, 1929 <--
17 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929,
18 ADDED MARCH 13, 1974 (P.L.194, NO.37), AND AMENDED DECEMBER 9,
19 1982 (P.L.1077, NO.251), IS AMENDED TO READ:
20 SECTION 2002. POWERS AND DUTIES OF THE DEPARTMENT.--* * *
21 (C) ANY OTHER PROVISION OF LAW TO THE CONTRARY
22 NOTWITHSTANDING, THE DEPARTMENT MAY LEASE REAL PROPERTY ACQUIRED
23 FOR ANY STATE DESIGNATED HIGHWAY OR OTHER TRANSPORTATION
24 FACILITY AS IS NOT REQUIRED FOR THE FREE MOVEMENT OF TRAFFIC,
25 UPON THE FOLLOWING TERMS AND CONDITIONS IN EACH CASE:
26 (1) THE OPPORTUNITY TO LEASE ANY PARCEL OF REAL PROPERTY
27 SHALL FIRST BE OFFERED TO INTERESTED PUBLIC AGENCIES; HOWEVER,
28 IF THERE BE NO SUCH AGENCY DESIRING TO LEASE, THEN THE
29 DEPARTMENT MAY LEASE TO ONE OR MORE PRIVATE ENTITIES: PROVIDED,
30 THAT [ALL PRIVATE ENTITIES] THE DEPARTMENT SHALL MAKE PAYMENTS
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1 IN LIEU OF TAXES TO THE POLITICAL SUBDIVISIONS IN WHICH SUCH
2 LEASED PROPERTY IS LOCATED IN AN AMOUNT EQUAL TO THE ANNUAL
3 TAXES THAT WOULD NORMALLY BE DUE ON SUCH PROPERTY, IF TAXABLE.
4 PRIOR TO REQUIRING A PAYMENT IN LIEU OF TAXES, THE POLITICAL
5 SUBDIVISION SHALL HAVE THE LEASED PROPERTY REASSESSED TO REFLECT
6 ANY CHANGE IN VALUE CAUSED BY THE CONSTRUCTION OF THE HIGHWAY OR
7 OTHER TRANSPORTATION FACILITY: AND PROVIDED, FURTHER, THAT THE
8 DEPARTMENT MAY LEASE TO A PRIVATE ENTITY DURING THE INTERIM
9 PERIOD BETWEEN PROPERTY ACQUISITION AND CONSTRUCTION WITHOUT
10 FIRST OFFERING PUBLIC AGENCIES OPPORTUNITY TO LEASE THE PARCEL.
11 (2) THE LESSEE OR SUBLESSEE SHALL PAY ALL COSTS INCIDENT TO:
12 (I) ALTERATION OR CONSTRUCTION FOR ITS OWN USE OF THE LEASED
13 AREA;
14 (II) ANY CHANGE IN THE HIGHWAY OR OTHER TRANSPORTATION
15 FACILITY OCCASIONED BY SUCH USE;
16 (III) RELOCATION OR REPLACEMENT OF PUBLIC UTILITY
17 FACILITIES, NOT EXCEEDING THE CAPACITY OF THOSE OCCUPYING THE
18 LEASED AREA AT THE TIME OF LEASE, OCCASIONED BY SUCH USE;
19 (IV) RELOCATION OR REPLACEMENT OF THE RELATED FACILITIES OF
20 A CONSUMER OF PUBLIC UTILITY SERVICES OCCASIONED BY ANY REQUIRED
21 RELOCATION OF THE FACILITIES OF THE SERVING UTILITY; AND
22 (V) RELOCATION OR REPLACEMENT OF THE FACILITIES OF AN
23 OCCUPANT OF PROPERTY ABUTTING THE HIGHWAY OR OTHER
24 TRANSPORTATION FACILITY OCCASIONED BY ANY ALTERATION,
25 CONSTRUCTION, CHANGE, RELOCATION OR REPLACEMENT DESCRIBED IN THE
26 FOREGOING SUBCLAUSES (I), (II) AND (III).
27 REVENUE DERIVED FROM ANY LEASE OF LAND ORIGINALLY ACQUIRED
28 FOR HIGHWAY PURPOSES SHALL BE DEPOSITED IN THE MOTOR LICENSE
29 FUND.
30 * * *
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1 SECTION 2. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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