HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WILLIAMS, KITCHEN, STACK, HUGHES, WASHINGTON, FARNESE AND TARTAGLIONE, OCTOBER 26, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 26, 2012   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in assessments of persons and

property, providing for cities and counties of the first

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class, further providing for definitions and for

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administration and procedure; and providing for

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applicability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "board" in section 8582 of

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Title 53 of the Pennsylvania Consolidated Statutes is amended to

read:

Section 1.  The heading of Chapter 85 of Title 53 of the

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Pennsylvania Consolidated Statutes is amended to read:

CHAPTER 85

ASSESSMENTS OF PERSONS AND PROPERTY

Subchapter

A.  through [D] C. (Reserved)

D.  Cities and Counties of the First Class

E.  Real Estate Tax Deferral

F.  Homestead Property Exclusion

SUBCHAPTERS A through [D] C

(Reserved)

Section 1.1.  Chapter 85 of Title 53 is amended by adding a

subchapter to read:

SUBCHAPTER D

CITIES AND COUNTIES OF THE FIRST CLASS

Sec.

8561.  Scope of subchapter.

8562.  Definitions.

8563.  (Reserved).

8564.  (Reserved).

8565.  Assessments and appeals for certain tax years.

§ 8561.  Scope of subchapter.

This subchapter relates to assessments in cities and counties

of the first class.

§ 8562.  Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Act 1939-404."  The act of June 27, 1939 (P.L.1199, No.404),

entitled "An act relating to the assessment of real and personal

property and other subjects of taxation in counties of the first

class; providing for the appointment of members of the board of

revision of taxes by the judges of the courts of common pleas;

providing for the appointment, by the board, of personal

property assessors, real estate assessors and assistant real

estate assessors, clerks and other employes; fixing the salaries

of members of the board, assessors and assistant assessors, and

providing for the payment of salaries and expenses from the

county treasury; prescribing the powers and duties of the board

and of the assessors, the time and manner of making assessments,

of the revision and notice of assessments and of appeals

therefrom; prescribing the records of assessments; and repealing

existing laws."

"Assessment office."  The office of property assessment in a

city.

"Board."  The board of revision of taxes or a successor body

authorized by a city to determine assessment appeals in a city.

"City."  A city of the first class.

"Common level ratio."  The ratio of assessed value to market

value as determined by the State Tax Equalization Board under

the act of June 27, 1947 (P.L.1046, No.447), referred to as the

State Tax Equalization Board Law.

"County."  A county of the first class.

"Established predetermined ratio."  The ratio of assessed

value to market value established under Act 1939-404 and

uniformly applied in determining assessed value in any year.

"Governing body."  The governing body of a city.

"School district."  A school district of the first class.

§ 8563.  (Reserved).

§ 8564.  (Reserved).

§ 8565.  Assessments and appeals for certain tax years.

(a)  Legislative findings.--The General Assembly finds and

declares as follows:

(1)  Real estate tax assessment in a city has become

increasingly at variance with principles of uniformity and

sound assessment.

(2)  The deficiencies under paragraph (1) have been

determined to be remedied by a citywide reassessment,

sometimes referred to as the "actual value initiative."

(3)  The reassessment of all properties located in a city

is likely to cause substantial shifts in tax liabilities

among various neighborhoods and groups of taxpayers. These

shifts are likely to increase substantially the tax burdens

on residential properties, particularly those properties with

low to medium values.

(4)  As part of a reassessment, the governing body must

make a major revision to the applicable tax rates in order to

maintain tax revenues and fund any required tax increases.

The governing body must take into account enactment of a

homestead exclusion and perhaps other measures in order to

alleviate an increased tax burden on lower value residential

properties.

(5)  The governing body cannot responsibly determine the

applicable tax rates without knowing the value of the tax

base to which the rates apply. Currently, a city's budget,

including tax revenues, must be enacted by each June 30; but

tax assessments are not finalized until the following

September.

(6)  Implementation by a city of an actual value

initiative will be helped by requiring that assessed values

be determined prior to adopting the city's budget and by the

applicable assessment officials completing the task of

determining the tax base in the city.

(7)  The common level ratio for a city applicable to tax

year 2012, certified by the State Tax Equalization Board and

published at 42 Pa.B. 2152 (April 14, 2012), has been

disputed and may be subject to further dispute. The common

level ratio for tax year 2013 may have similar uncertainties.

The ratios for both years are determined by a State Tax

Equalization Board assessment tool new to the review of

properties in a city.

(8)  The common level ratio for a city applicable to tax

year 2011, based on 2009 data and published at 40 Pa.B. 4069

(July 17, 2010), has not been disputed and is the same as the

applicable established predetermined ratio.

(9)  Special provisions are necessary in order to address

the findings set forth in this subsection.

(b)  Certification of values.--Notwithstanding any other

provision of law:

(1)  For tax year 2013, the assessment office shall

certify assessed values at the assessed values certified for

tax year 2011, adjusted for subsequent improvements,

demolition and destruction. The assessed values certified for

tax year 2013 under this paragraph shall apply to all taxes

on, or measured by, assessed values levied by a city or a

school district for tax year 2013 notwithstanding any

contrary enactment of a city or a school district or any

contrary certification by a city, city agency or school

district.

(2)  For tax years after tax year 2013, the assessment

office shall certify market values at actual market value. In

arriving at actual market value, the price at which any

property may actually have been sold shall be considered but

shall not be controlling. In arriving at the actual market

value:

(i)  All three of the following valuation methods

shall be considered in conjunction with one another:

(A)  Reproduction or replacement cost, as

applicable, minus:

(I)  depreciation; and

(II)  all forms of obsolescence.

(B)  Comparable sales.

(C)  Income.

(ii)  The valuation process may employ systems,

methodologies and technologies that meet nationally

recognized assessment standards.

(c)  Timing of certification.--Notwithstanding any other

provision of law, for tax years after tax year 2013, the

assessment office shall certify assessed values by March 31 of

the preceding year.

(d)  Application of established predetermined ratio.--

Notwithstanding any other provision of law, in any assessment

appeal under Act 1939-404 for tax year 2013, the board and any

applicable court of competent jurisdiction shall apply the

established predetermined ratio applicable to a city for tax

year 2011.

(e)  Conflicts.--If there is a conflict between a provision

of Act 1939-404 and a provision of this section, the provision

of this section shall apply.

Section 1.2.  The definition of "board" in section 8582 of

Title 53 is amended to read:

§ 8582.  Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

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"Board."  Any of the following:

(1)  "Board."  As defined in [the act of June 26, 1931,

(P.L.1379, No.348), referred to as the Third Class County

Assessment Board Law.

(2)  "Board."  As defined in the act of May 21, 1943

(P.L.571, No.254), known as The Fourth to Eighth Class County

Assessment Law.] section 8802 (relating to definitions).

[(3)] (2)  "Board of Property Assessment, Appeals and

Review."  The Board of Property Assessment, Appeals and

Review in a county of the second class under the act of June

21, 1939 (P.L.626, No.294), referred to as the Second Class

County Assessment Law or a similar body established by a home

rule county.

[(4)] (3)  "Board of Revision of Tax and Appeals."  The

board of revision of taxes and appeals in cities of the third

class.

(4)  The body with responsibility for the making of

assessments of real property in a city of the first class.

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Section 2.  Section 8584(b) and (c) of Title 53 are amended

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to read:

§ 8584.  Administration and procedure.

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(b)  Filing deadlines; renewal of application.--Applications

shall be filed with the assessor not later than March 1 of each

year; provided that, in a city of the first class, the

application shall be filed with the assessor not later than a

date set by the governing body, which date shall be no later

than December 1 of the year prior to the year in which the

exclusion shall first apply. The governing body of a county may

adopt a schedule for review or reapplication for real property

previously approved as homestead property or farmstead property.

(c)  Notice of applications and deadlines.--The assessor

shall provide sufficient notice to the public regarding the

availability of applications to designate real property as

homestead property or farmstead property and all filing

deadlines. The assessor shall make applications available at

least 75 days before the filing deadline; provided that, in a

city of the first class, the application shall be available at

least 60 days before the filing deadline.

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Section 2 3.  Title 53 is amended by adding a section to

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read:

§ 8588.  Applicability.

Notwithstanding the provisions of section 8405 (relating to

applicability), the provisions of this subchapter shall apply to

cities and counties of the first class and to school districts

of the first class. Any action taken pursuant to this subchapter

by the governing body of a city of the first class shall apply

to a city of the first class and to a school district of the

first class.

Section 3 4.  This act shall take effect in 60 days 

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immediately.

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