THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BLAKE, BAKER, GORDNER, YAW, YUDICHAK, PILEGGI, COSTA, ARGALL, BOSCOLA, ERICKSON, FARNESE, FONTANA, GREENLEAF, PIPPY, MENSCH, RAFFERTY, SCHWANK, SMUCKER, TARTAGLIONE, WAUGH, BREWSTER, DINNIMAN, FERLO, HUGHES, KASUNIC, KITCHEN, LEACH, SOLOBAY, STACK, WASHINGTON, WILLIAMS, WOZNIAK, BROWNE AND BRUBAKER, SEPTEMBER 28, 2011

SENATOR BRUBAKER, FINANCE, AS AMENDED, OCTOBER 26, 2011   

AN ACT

Authorizing abatement of real estate taxes because of

destruction or damage of property by Hurricane Irene and or 

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Tropical Storm Lee, or the refund of the amount of such taxes

by certain political subdivisions; and authorizing assessment

of properties retroactive to January August 1, 2011, and a

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limited moratorium on the increase of certain real estate

taxes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

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This act shall be known and may be cited as the Real Estate

Tax Abatement for Properties Damaged by Hurricane Irene or

Tropical Storm Lee Act.

Section 1 2.  Local abatement of real estate taxes.

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The taxing bodies authorities of the various counties,

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cities, boroughs, towns, townships and school districts may, by

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ordinance or resolution, abate real estate taxes imposed by them

for the tax year 2011, if the real property upon which the tax

was imposed was damaged or destroyed by Hurricane Irene and or 

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Tropical Storm Lee. Upon the adoption of an ordinance or

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resolution authorizing the abatement of real estate taxes under

this section, the taxing authority shall provide a copy of the

ordinance or resolution to the county assessment office. The

amount of any real estate tax abated shall be in direct

proportion to the damage to the property as measured by a

reduction in the assessed valuation of the property by the local

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assessing authority county assessment office using the same

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assessment valuation factors, criteria and procedures in use

prior to the disaster. Local assessing authorities are hereby  

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The county assessment office is authorized to assess reassess 

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damaged properties retroactive to January August 1, 2011, to

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reflect reductions in property value due to flood damage 

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resulting from Hurricane Irene or Tropical Storm Lee. A damage

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assessment performed in conjunction with the county assessment

office and the Federal Emergency Management Agency (FEMA) for

purposes of determining Federal disaster aid connected with

Hurricane Irene or Tropical Storm Lee may be used to determine

the abatement of real estate taxes. In the event that the real

estate tax has been paid, the taxing bodies may refund the taxes 

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a portion of the assessed value of the property lost due to

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damage may be refunded by the taxing authority or reflected by

the taxing authority in the form of a credit for the succeeding

tax year. The amount of real estate tax abated, credited or

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refunded by any taxing body authority shall not exceed $30,000

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for any single property, notwithstanding any other exclusion

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applicable to the property.

Section 2 3.  Ownership requirement.

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No abatement, credit or refund may be allowed for the year

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2011 unless the property owner at the time of the abatement, 

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credit or refund was also the owner of the property at the time

of Hurricane Irene and or Tropical Storm Lee.

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Section 3 4.  Optional moratorium for certain real estate taxes.

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(a)  Exemption for reconstruction and repairs.--Local taxing

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authorities A taxing authority may, by ordinance or resolution,

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exempt from real property taxation the assessed valuation of

reconstruction or repairs made to properties damaged or

destroyed by Hurricane Irene and or Tropical Storm Lee. The

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exemption shall be limited to the additional assessment

valuation attributable to the actual costs of reconstruction or

repairs on the damaged or destroyed property. Upon the adoption

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of an ordinance or resolution authorizing an exemption of real

estate taxes under this section, the taxing authority shall

provide a copy of the ordinance or resolution to the county

assessment office. The eligible exemption shall be limited to

the difference between the assessed valuation of the property

prior to the damages and any increase in valuation of the

property due to the actual cost of reconstruction or repairs to

the original structure.

(b)  Exemption schedule.--For the first year for which the

reconstruction or repairs would otherwise be taxable, 100% of

the eligible assessment shall be exempted; for the second year,

50% of the eligible assessment shall be exempted and, for the

third year, 25% of the eligible assessment shall be exempted.

After the third year, the exemption shall terminate. No property

may be eligible for tax exemption under this section unless

reconstruction or repairs are begun within five three years of

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the date of Hurricane Irene and or Tropical Storm Lee.

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(c)  Termination upon transfer.--The exemption from taxation

authorized by this section shall terminate upon the sale,

transfer, conveyance or exchange of the property.

(d)  Notice.--Local taxing authorities A taxing authority 

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shall publish notice of the moratorium on taxation attributable

to increases in assessed valuations due to reconstruction or

repairs as required in this act. The notice shall appear on at

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least two occasions in a newspaper of general circulation within

the affected areas within 60 days of the adoption of the

ordinance or resolution authorized under subsection (a).

Section 4 5.  Effective date.

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This act shall take effect immediately.