SENATE AMENDED

 

PRIOR PRINTER'S NOS. 2233, 2268, 2331, 2340, 2353, 2340

PRINTER'S NO.  2434

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1546

Session of

2012

  

  

INTRODUCED BY GORDNER, YAW, RAFFERTY, PILEGGI, YUDICHAK, MENSCH, ARGALL, D. WHITE, EARLL, SCHWANK AND WARD, JUNE 1, 2012

  

  

SENATE AMENDMENTS TO HOUSE AMENDMENTS, OCTOBER 1, 2012   

  

  

  

AN ACT

  

1

Amending the act of June 27, 1996 (P.L.403, No.58), entitled "An

2

act to enhance community and economic development in this

3

Commonwealth by restructuring certain administrative

4

functions and entities; changing the name of the Department

5

of Commerce to the Department of Community and Economic

6

Development; transferring functions of the Department of

7

Community Affairs into the Department of Community and

8

Economic Development and other agencies; providing for a

9

Deputy Secretary for Community Affairs and Development in the

10

Department of Community and Economic Development;

11

establishing the Center for Local Government Services and the

12

Local Government Advisory Committee; establishing the Small

13

Business Advocacy Council; conferring powers and duties on

14

the Legislative Reference Bureau; and making repeals,"

15

codifying the State Tax Equalization Board Law into the act; 

16

further providing for creation of board, for membership, for

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17

general powers and duties and for common level ratio;

18

providing for publication of information by board funding

19

contingency; and making a related repeal.

20

The General Assembly of the Commonwealth of Pennsylvania

21

hereby enacts as follows:

22

Section 1.  The act of June 27, 1996 (P.L.403, No.58), known

23

as the Community and Economic Development Enhancement Act, is

24

amended by adding a chapter to read:

25

CHAPTER 15

26

STATE TAX EQUALIZATION BOARD

 


1

Section 1500.  Definitions.

2

The following words and phrases when used in this chapter

3

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

4

context clearly indicates otherwise:

5

"Board."  The State Tax Equalization Board.

6

Section 1501.  Creation of board.

7

The State Tax Equalization Board is established within the

8

department.

9

Section 1502.  Membership.

10

(a)  Members.--The board shall consist of three members who

11

must be citizens of the United States, residents of this

12

Commonwealth and qualified electors for a period of at least one

13

year next preceding their appointments. Each appointee must be

14

familiar by training or experience with the problems involved in

15

the work of the board.

16

(b)  Appointment and service.--

17

(1)  The members of the board shall be appointed by the

18

Governor for terms of four years each, or until their

19

successors are appointed and qualified. A vacancy shall be

20

filled by appointment of the Governor for the unexpired term.

21

(2)  A member of the board may, after notice and an

22

opportunity to be heard, be removed for cause by the

23

Governor.

24

(3)  Notwithstanding any other provision of law, the

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25

Governor may not appoint an individual as a member of the

26

board, if because of the individual's party affiliation under

27

25 Pa.C.S. Pt. IV (relating to voter registration),

28

appointment of the individual would result in more than two

29

members of the board having the same party affiliation as the

30

Governor.

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1

(c)  Compensation.--The chairman of the board shall receive

2

an annual salary of $25,000, and each other member shall receive

3

an annual salary of $24,000.

4

Section 1503.  Chairman.

5

The Governor shall designate one of the members as chairman.

6

The chairman shall be in charge of the administration of the

7

board and the transaction of its routine business and shall

8

execute the orders and policies of the board. The chairman may

9

delegate to a member the authority to act for the chairman.

10

Section 1504.  Quorum.

11

Two members of the board shall constitute a quorum and any

12

action of the board shall require the approval of two members.

13

Section 1505.  Individual powers of members of the board.

14

(a)  Authority.--Any investigation, inquiry or hearing, which

15

the board has power to undertake or hold may be undertaken or

16

held by one or more individual members of the board.

17

(b)  Effect.--

18

(1)  Conduct under subsection (a) shall be deemed to be

19

conduct of the board.

20

(2)  In order to be effective, any determination, ruling

21

or order based upon conduct under subsection (a) must be:

22

(i)  approved and confirmed by a quorum of the board;

23

and

24

(ii)  filed in the office of the board.

25

(3)  Upon compliance with paragraph (2), the

26

determination, ruling or order shall be the determination,

27

ruling or order of the board.

28

(c)  Agents and examiners.--

29

(1)  In any investigation, inquiry or hearing, which may

30

be instituted, the board is authorized to employ special

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1

agents or examiners.

2

(2)  Agents and examiners under this subsection are

3

authorized to administer oaths, examine witnesses and receive

4

evidence, in a locality designated by the board. Evidence

5

under this paragraph shall have the same force and effect as

6

if taken or received by the board or any one or more of its

7

members under subsections (a) and (b).

8

Section 1506.  Administrative assistance.

9

The department shall provide appropriate administrative,

10

legal and technical support as needed by the board in order to

11

accomplish its purpose.

12

Section 1507.  General powers and duties.

13

The board has the following powers and duties:

14

(1)  To determine the market value of taxable real

15

property in each school district and to conduct

16

investigations, require information and have access to public

17

records necessary to make the determination under this

18

paragraph.

19

(2)  To require, in counties of the first class, the

20

board of revision of taxes of such county, or its successor

21

agency, and the county commissioners, or the body or

22

individual exercising equivalent authority, of each county

23

other than a county of the first class, to furnish a monthly

24

list of all conveyances or other transfers of real estate, or

25

any interest in real estate, recorded within the county

26

during the preceding month, stating the value of the Federal

27

tax stamps affixed to the deed for each conveyance, and the

28

assessed valuations for county tax purposes of the real

29

estate.

30

(3)  To certify to the Department of Education and to the

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1

board of school directors of each school district:

2

(i)  by July 1 of each odd-numbered year, a list of

3

all school districts showing the market value of taxable

4

real property and the assessed valuation for county tax

5

purposes; and

6

(ii)  by July 1 of each even-numbered year, the

7

changes in market values which result from properties

8

going on or off the assessment rolls for taxation

9

purposes.

10

(3.1)  By July 1 of each odd-numbered year, to furnish to

11

the board of school directors of each school district

12

information as pertains to taxable real property in that

13

school district.

14

(4)  To hear and decide appeals of parties that are

15

aggrieved by a finding or conclusion of the board.

16

(5)  To:

17

(i)  investigate the finances and general

18

circumstances of a school district requesting special aid

19

from the Department of Education; and

20

(ii)  advise the Department of Education in making

21

grants of special aid.

22

(6)  To make surveys and investigations of the finances

23

of school districts in the interest of a more equitable

24

distribution of school support.

25

(7)  To subpoena State and local officials and to require

26

from them information as necessary for the proper discharge

27

of its duties.

28

(8)  To discharge functions imposed upon departmental

29

administrative boards by the act of April 9, 1929 (P.L.177,

30

No.175), known as The Administrative Code of 1929.

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1

(9)  To establish, annually, by July 1, a common level

2

ratio of assessed value to market value in each county for

3

the prior calendar year.

4

(10)  To meet as necessary and at least every other month

5

to approve or confirm any determination, ruling or order

6

pursuant to section 1505.

7

(11)  To create in consultation with the County

8

Commissioners Association of Pennsylvania and the Assessors'

9

Association of Pennsylvania an operations manual to be

10

utilized by counties when completing a countywide

11

reassessment or when valuating property.

12

(12)  To create and maintain a centralized and

13

standardized Statewide database for counties to utilize and

14

report to the board all property values and data as required

15

by the board.

16

(13)  To develop and maintain Statewide training programs

17

for all persons involved in the valuation of property within

18

all of the counties of this Commonwealth. These programs

19

shall provide basic and detailed training that shall be

20

completed and passed by any person employed to collect,

21

compile, compare or handle data associated with the valuation

22

of any property for purposes of reassessment valuation within

23

this Commonwealth.

24

(14)  To develop standards on contracting for assessment

25

services in consultation with the County Commissioners

26

Association of Pennsylvania and the Assessors' Association of

27

Pennsylvania, taking into consideration the standards

28

published by the International Association of Assessing

29

Officers. The standards shall:

30

(i)  Require that the methodology used by any person,

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1

company or organization to value property in this

2

Commonwealth be made public.

3

(ii)  State that all data and calculations are the

4

property of the county and this Commonwealth.

5

Section 1508.  Compilation of data.

6

(a)  Requirement.--The board shall accumulate and compile

7

data:

8

(1)  showing the prices at which real property in each

9

school district has been sold and all other available matter

10

relevant to the market value of real property in all school

11

districts; and

12

(2)  concerning new sales and improvements and other data

13

necessary to ensure that the records of the board show the

14

current present market value of real property in each school

15

district as nearly as the same can be determined.

16

(b)  Authority.--In compiling data, the board is authorized

17

to examine all of the following:

18

(1)  Local tax assessment records maintained by local

19

assessors or county and city assessors and boards,

20

commissions or departments charged with the duty of revising

21

assessments.

22

(2)  Public records.

23

Section 1509.  Monthly reports by counties and Commonwealth

24

payments.

25

(a)  Duty.--The following shall apply:

26

(1)  It shall be the duty of the following entities to

27

prepare, certify and electronically deliver to the board on

28

the 15th day of each month a list as prescribed by the board

29

of all conveyances or other transfers of real estate or any

30

interest in real estate, conveyed consistent with any

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1

procedures for excluding sales data established in accordance

2

with section 1516.2(2), recorded within the county during the

3

preceding month:

4

(i)  In counties of the first class, the board of

5

revision of taxes or its successor agency.

6

(ii)  In counties of the second class, the office of

7

property assessment or its successor agency.

8

(iii)  In counties of the second class A through

9

eighth class, the board as defined in 53 Pa.C.S. § 8802

10

(relating to definitions).

11

(2)  The list under paragraph (1) shall include the value

12

of the Federal tax stamps affixed to the deed for each

13

conveyance or transfer as set forth on the list and the

14

assessed valuation for county tax purposes of the real

15

estate.

16

(3)  At the end of each month, a list of all the real

17

estate conveyed or transferred within the county during the

18

month, stating the value of Federal tax stamps affixed to the

19

instrument conveying or transferring the real estate or any

20

interest in the real estate, shall be prepared and delivered

21

as follows:

22

(i)  In counties of the first class, the recorder of

23

deeds shall prepare and deliver the list to the board of

24

revision of taxes or its successor agency.

25

(ii)  In all counties except for a county of the

26

first class, the recorder of deeds shall prepare and

27

deliver the list to the county commissioners or the body

28

or agency exercising equivalent authority.

29

(b)  Payment.--The board shall pay to the board of revision

30

of taxes, or its successor agency, of counties of the first

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1

class and to the county commissioners, or the body or individual

2

exercising equivalent authority, of every county except a county

3

of the first class the sum of 20¢ for each conveyance or

4

transfer of real estate on each list prepared, certified and

5

delivered to the board for its use under this section.

6

Section 1510.  Annual reports of local assessing officials.

7

By June 1 of each year, the following entities shall file

8

with the board a certificate prescribed by the board and on

9

blanks furnished by the board showing the assessed valuation of

10

all real property in each school district in the county on which

11

the taxes for the then current year are levied:

12

(1)  The board of revision of taxes, or its successor

13

agency, of counties of the first class.

14

(2)  The office of property assessment, or its successor

15

agency, of counties of the second class.

16

(3)  The board as defined in 53 Pa.C.S. § 8802 (relating

17

to definitions).

18

Section 1511.  Market value and percentage of value.

19

From the data compiled under section 1510, the board shall as

20

soon as possible after July 1, determine the market value of

21

real property in each school district and the percentage of the

22

market value as determined by the assessed valuation for county

23

tax purposes.

24

Section 1512.  Certification.

25

As soon as the market value of the real property in each

26

school district in this Commonwealth has been determined and the

27

percentage of the value of the assessed valuation for county tax

28

purposes has been established, the board shall certify the

29

amounts to the Department of Education and for each school

30

district to the board of school directors.

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1

Section 1513.  Objections.

2

(a)  School district.--Any school district aggrieved by any

3

finding or conclusion of the board affecting the amount of any

4

Commonwealth subsidy payable to it may file written objections

5

with the board.

6

(b)  Hearing.--The board shall conduct a hearing at which the

7

board and the school district may submit evidence to show that

8

the findings of the board are incorrect and present arguments to

9

substantiate its contentions.

10

(c)  Findings.--Following review of all the evidence

11

submitted and the arguments of the school district, the board

12

may make modifications and adjustments of its findings and

13

computations as appropriate or dismiss the objections. The board

14

shall prepare written findings of fact based upon all the

15

evidence submitted.

16

(d)  Final valuations.--Any valuations adjusted under

17

subsection (c) shall form the basis of valuations used to

18

determine the amounts of Commonwealth educational subsidies.

19

Section 1514.  Annual adjustments.

20

By July 1 of each odd-numbered year, the board shall adjust

21

the market value of real property in each school district to

22

conform with new data accumulated since the market values for

23

the last preceding two years were determined. The board shall

24

determine the percentage of the market value of the assessed

25

valuation of all real property in the school district on which

26

county taxes for the then current year are levied. The market

27

values, percentages and adjustments shall be certified to the

28

Department of Education and each school district with the same

29

right to hearings as provided under section 1513.

30

Section 1515.  Determination and apportionment.

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1

(a)  Certification.--As soon as possible each odd-numbered

2

year and after the final adjustment of values by the board, the

3

board shall certify to the Department of Education the market

4

value of all real property in each school district.

5

(b)  Standard reimbursement fraction.--Each school district's

6

assessed valuation to be used for purposes of computing its

7

standard reimbursement fraction shall be the market value under

8

subsection (a).

9

(c)  Payments.--Every two years the market value under

10

subsection (a) shall be used by the Department of Education to

11

determine the amount of funds needed to meet payments required

12

by law to school districts and vocational schools within the two

13

fiscal years beginning every June 1 and ending every May 31. The

14

Department of Education shall allot the payments to the

15

respective school districts.

16

Section 1516.  Special aid to school districts.

17

Before granting any special aid to a school district, the

18

Department of Education shall submit the request for special aid

19

to the board. The board shall make its recommendations with

20

consideration given to the school district's ability to raise

21

funds by taxation. Before making any recommendation, the board

22

shall carefully investigate and study the financial

23

circumstances of the school district and whether or not it has

24

exhausted its available taxing power not only on real property,

25

but also on all other available property and subjects of

26

taxation, and that collection of taxes is being effectively

27

conducted and enforced. Recommendations shall be transmitted to

28

the Department of Education.

29

Section 1516.1.  Common level ratio.

30

(a)  Establishment.--The board shall annually, prior to July

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1

1, establish for each county a common level ratio for the prior

2

calendar year.

3

(b)  Method.--In arriving at the ratio, the board shall use

4

statistically acceptable techniques, including sales ratio

5

studies. The board's method in arriving at the ratio shall be

6

public information. The ratio shall be certified to the chief

7

assessor of each county and shall be admissible as evidence in

8

any appeal involving real property tax assessments.

9

(c)  Appeal.--Any political subdivision or taxpayer aggrieved

10

by any finding, conclusion, method or technique of the board

11

made under this section may, in writing, file objections to and

12

appeal de novo the ratio determination to Commonwealth Court.

13

After receiving the objections, the board may grant a hearing

14

and may modify or adjust its findings and computations as

15

appropriate.

16

(d)  Review.--If the common level ratio increases or

17

decreases by ten percent or more, the board shall immediately

18

review its findings prior to certification of the ratio.

19

Section 1516.2.  Publication of information by board.

20

The board shall publish the following information that shall

21

be updated annually:

22

(1)  The statistical methods used to calculate the common

23

level ratio and the State Tax Equalization Board market

24

ratio.

25

(2)  Procedures for excluding sales data and how the

26

procedures compare with practices of the International

27

Association of Assessing Officers.

28

(3)  Procedures to ensure that dissimilar properties are

29

not treated as a single group.

30

(4)  Standards to be used for sales sample size and

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1

procedures to be used when sales samples are not adequate.

2

If a municipality contracts for services relating to an

3

assessment, the data collected by the contractor must be

4

transmitted to the municipality within 60 days of its collection

5

or development.

6

Section 1517.  Saving clause.

7

Nothing in this chapter shall be construed to change or

8

affect the validity of the assessed valuation of any real

9

property for the purpose of levying taxes by any political

10

subdivision.

11

Section 1518.  (Reserved).

12

Section 1519.  Repeal.

13

All acts and parts of acts are repealed insofar as they are

14

inconsistent with this chapter.

15

Section 1520.  (Reserved).

16

Section 1521.  Funding contingency.

17

The board's authority to carry out the duties set forth in

18

section 1507(11), (12), (13) and (14) is contingent upon receipt

19

of an appropriation in an amount sufficient to complete these

20

duties.

21

Section 1522.  Limitation on countywide reassessment.

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22

(a)  Prohibition.--The following shall apply:

23

(1)  No local taxing authority shall undertake, on or

24

after the effective date of this section, the process of a

25

court-ordered countywide reassessment of real property for

26

purposes of levying property taxes.

27

(2)  Notwithstanding paragraph (1), any county currently

28

conducting a court-ordered countywide reassessment as of the

29

effective date of this section may, at the discretion of the

30

county, continue the process.

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1

(b)  End of prohibition.--The prohibition under subsection

2

(a)(1) shall remain in effect until the board has implemented

3

and completed the requirements under section 1507, or until

4

December 31, 2014, whichever occurs first.

5

(c)  Definition.--As used in this section, the term "local

6

taxing authority" shall mean any political subdivision

7

authorized to impose real property taxes.

8

Section 2.  Repeals are as follows:

9

(1)  The General Assembly declares that the repeal under

10

paragraph (2) is necessary to effectuate the addition of

11

Chapter 15 of the act.

12

(2)  The act of June 27, 1947 (P.L.1046, No.447),

13

referred to as the State Tax Equalization Board Law, is

14

repealed.

15

(3)  All acts and parts of acts are repealed insofar as

16

they are inconsistent with this act.

17

Section 3.  The addition of Chapter 15 of the act is a

18

continuation of the act of June 27, 1947 (P.L.1046, No.447),

19

referred to as the State Tax Equalization Board Law. The

20

following apply:

21

(1)  Except as otherwise provided in Chapter 15 of the

22

act, all activities initiated under the State Tax

23

Equalization Board Law shall continue and remain in full

24

force and effect and may be completed under Chapter 15 of the

25

act. Resolutions, orders, regulations, rules, decisions and

26

sequence of methods used for arriving at market value for

27

odd-numbered and even-numbered years which were made under

28

the State Tax Equalization Board Law and which are in effect

29

on the effective date of this section shall remain in full

30

force and effect until revoked, vacated or modified under

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1

Chapter 15 of the act. Contracts, obligations and agreements

2

entered into under the State Tax Equalization Board Law are

3

not affected nor impaired by the repeal of the State Tax

4

Equalization Board Law.

5

(2)  The Legislative Reference Bureau has the power and

6

duty to recodify regulations of the State Tax Equalization

7

Board to effectuate the addition of section 1501 of the act.

8

(3)  Except as set forth in paragraph (4), any difference

9

in language between Chapter 15 of the act and the State Tax

10

Equalization Board Law is intended only to conform to the

11

style of the addition of a new chapter to the act and is not

12

intended to change or affect the legislative intent, judicial

13

construction or administrative interpretation and

14

implementation of the State Tax Equalization Board Law.

15

(4)  Paragraph (3) does not apply to the addition of the

16

following provisions of the act:

17

(i)  Section 1501.

18

(ii)  Section 1502(c).

19

(iii)  Section 1507(8), (10), (11), (12), (13) and

20

(14).

21

(iv)  Section 1516.1(d).

22

(v)  Section 1516.2.

23

(vi)  Section 1521.

24

(vii)  Section 1522.

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25

Section 4.  This act shall take effect immediately.

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