THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY KULA, MIRABITO, MAHONEY, STURLA, BARBIN, CALTAGIRONE, CARROLL, DAVIS, DONATUCCI, FABRIZIO, GIBBONS, HARKINS, HORNAMAN, KAVULICH, MULLERY, MUNDY, MURPHY, PARKER, PASHINSKI, SAMUELSON AND SWANGER, JUNE 15, 2011

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 15, 2011  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, further providing for subjects of

local taxation and for valuation of property.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 8811 of Title 53 of the Pennsylvania

Consolidated Statutes, amended October 27, 2010 (P.L.895,

No.93), is amended to read:

§ 8811.  Subjects of local taxation.

(a)  Subjects of taxation enumerated.--Except as provided in

subsection (b), all subjects and property made taxable by the

laws of this Commonwealth for county, city, borough, town,

township and school district purposes shall, as provided in this

chapter, be valued and assessed at the annual rates, including

all:

(1)  Real estate, namely:

(i)  houses;

(ii)  house trailers and mobile homes permanently

attached to land or connected with water, gas, electric

or sewage facilities;

(iii)  buildings permanently attached to land or

connected with water, gas, electric or sewage facilities;

(iv)  lands, lots of ground and ground rents, trailer

parks and parking lots;

(v)  mills and manufactories of all kinds, furnaces,

forges, bloomeries, distilleries, sugar houses, malt

houses, breweries, tan yards, fisheries, ferries and

wharves;

(vi)  all office buildings;

(vii)  that portion of a steel, lead, aluminum or

like melting and continuous casting structure which

encloses or provides shelter or protection from the

elements for the various machinery, tools, appliances,

equipment, materials or products involved in the mill,

mine, manufactory or industrial process; and

(viii)  telecommunication towers that have become

affixed to land.

(1.1)  Rights held pursuant to a lease or other agreement

subject to the act of July 20, 1979 (P.L.183, No.60),

entitled "An act regulating the terms and conditions of

certain leases regarding natural gas and oil," to extract,

remove or recover gas, including natural gas, or oil shall be

subject to taxation as real estate for all county, city,

borough, town, township and school district purposes. The

rights shall be assessed and taxed separately from the

surface property assessment, in the name of the holder of

such rights, and valued in accordance with section 8842(d)

(relating to valuation of property). The following apply:

(i)  For the first tax year after the effective date

of this paragraph that the chief assessor has implemented

the provisions of this paragraph and has rated and valued

leases under this paragraph and placed the value on the

county's permanent set of records, each political

subdivision for which the total amount of taxes levied

for that year against real properties contained in the

duplicate for the preceding year exceeds 110% of the

total amount it levied on those properties in the

preceding year, shall for that first year, reduce its tax

rate, if necessary, for the purpose of having the total

amount of taxes levied for that year against the real

properties contained in the duplicate for the preceding

year, equal the total amount it levied on those

properties the preceding year, notwithstanding the

increased valuations of the properties under the revised

assessment. The tax rate shall be fixed at a figure which

will accomplish this purpose.

(ii)  After establishing a tax rate under

subparagraph (i), a political subdivision may increase

its tax rate by a separate and specific vote.

(iii)  For the purpose of determining the total

amount of taxes to be levied in the first year under

subparagraphs (i) and (ii), the amount to be levied on

newly constructed buildings or structures, or on

increased valuations based on new improvements made to

existing houses, need not be considered.

(iv)  The provisions of this paragraph are not

intended, nor shall they be construed, to affect any

other determination, including, but not limited to, the

determination of royalty due under mineral leases.

Notwithstanding any other provision of law, any tax

imposed by this chapter shall not reduce any royalty

payments due under mineral leases, and the producer under

a mineral lease may not recover any portion of the tax

paid from the royalty owner through other means of

deduction or reallocation, notwithstanding any provision

in the lease, contract or agreement.

(2)  All other things now taxable by the laws of this

Commonwealth for taxing districts.

(b)  Exceptions.--The following are not subject to tax:

(1)  Machinery, tools, appliances and other equipment

contained in any mill, mine, manufactory or industrial

establishment shall not be considered or included as a part

of the real estate in determining the value for taxation of

the mill, mine, manufactory or industrial establishment.

(2)  Silos used predominantly for processing or storage

of animal feed incidental to operation of the farm on which

it is located, freestanding detachable grain bins or corn

cribs used exclusively for processing or storage of animal

feed incidental to the operation of the farm on which it is

located and inground and aboveground structures and

containments used predominantly for processing and storage of

animal waste and composting facilities incidental to

operation of the farm on which the structures and

containments are located shall not be considered or included

as part of the real estate.

(3)  No amusement park rides shall be assessed or taxed

as real estate regardless of whether they have become affixed

to the real estate.

(4)  No sign or sign structure primarily used to support

or display a sign shall be assessed as real property by a

county for purposes of the taxation of real property by the

county or a political subdivision located within the county

or by a municipality located within the county authorized to

assess real property for purposes of taxation, regardless of

whether the sign or sign structure has become affixed to the

real estate.

(5)  No wind turbine generators or related wind energy

appliances and equipment, including towers and tower

foundations, shall be considered or included as part of the

real property in determining the fair market value and

assessment of real property used for the purpose of wind

energy generation. Real property used for the purpose of wind

energy generation shall be valued under section 8842(b)(2)

[(relating to valuation of property)].

Section 2.  Section 8842 of Title 53, amended October 27,

2010 (P.L.895, No.93), is amended by adding a subsection to

read:

§ 8842.  Valuation of property.

* * *

(d)  Gas and oil leases.--The valuation of rights held

pursuant to a lease or other agreement subject to the act of

July 20, 1979 (P.L.183, No.60), entitled "An act regulating the

terms and conditions of certain leases regarding natural gas and

oil," to extract, remove or recover gas, including natural gas,

or oil shall be developed by the county assessor utilizing the

income approach to value based upon the discounted value of the

rights, supplemented by the sales comparison data approach as

deemed necessary by the county assessor. The lessee or operator,

or lessor on behalf of the lessee or operator, shall annually,

no later than July 1, provide the county assessor with such

nonproprietary lease and lease income information as the

assessor determines is reasonably needed to determine value. The

board may change the assessed valuation of the rights in the

event information becomes available that would significantly

affect the valuation, including, but not limited to,

commencement of production on or near the property and the

depletion of the hydrocarbon gas subject to the lease and

related production.

Section 3.  This act shall take effect in 60 days.