SENATE AMENDED
PRIOR PRINTER'S NOS. 2230, 2741 PRINTER'S NO. 2944
No. 1743 Session of 2005
INTRODUCED BY MUSTIO, TURZAI, T. STEVENSON, DeLUCA, FRANKEL,
MARKOSEK, PETRONE, WALKO, BOYD, CALTAGIRONE, DENLINGER,
FAIRCHILD, GODSHALL, HERSHEY, LEH, REED, ROHRER, TIGUE AND
YOUNGBLOOD, JUNE 15, 2005
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED, OCTOBER 25, 2005
AN ACT
1 Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
2 as amended, "An act relating to counties of the second class
3 and second class A; amending, revising, consolidating and
4 changing the laws relating thereto," further providing for
5 assessment limits on counties of the second class; and
6 providing for effect of appeal, escrow and payment under
7 protest.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 1980.2 of the act of July 28, 1953
11 (P.L.723, No.230), known as the Second Class County Code, added
12 December 21, 1998 (P.L.1088, No.146), is amended to read:
13 Section 1980.2. Limits on Counties of the Second Class.--(a)
14 Notwithstanding any provisions of the act of June 21, 1939
15 (P.L.626, No.294), referred to as the Second Class County
16 Assessment Law, to the contrary, or any contrary provision of
17 any home rule charter or administrative code of a county of the
18 second class, when a county of the second class makes its
19 [annual] reassessment OR REVALUATION at values based upon an <--
1 established predetermined ratio as required by law or when a
2 county of the second class changes its established predetermined
3 ratio, each political subdivision which hereafter levies its
4 real estate taxes on that revised [assessment or valuation] <--
5 REASSESSMENT, REVALUATION OR CHANGE IN RATIO shall for that year <--
6 reduce its tax rate, if necessary, for the purpose of having the
7 total amount of property tax revenue received exclusively as a
8 result of the reassessment, REVALUATION or change in ratio [not <--
9 to exceed one hundred five per cent of] equal, in the case of
10 any political subdivision, the total amount of property tax
11 revenue received in the preceding year, notwithstanding the
12 increased valuations of properties under the annual reassessment
13 system. [For the purpose of determining the total amount of
14 revenue received exclusively as a result of the reassessment or
15 change in ratio for the year, the amount to be levied on newly
16 constructed buildings or structures or on increased valuations
17 based on new improvements made to existing structures shall not
18 be considered.]
19 (b) After establishing a tax rate under subsection (a), a
20 political subdivision may, by a separate and specific vote,
21 establish a final tax rate for the first year it levies its real
22 estate taxes on a revised assessment or valuation REASSESSMENT, <--
23 REVALUATION OR CHANGE IN RATIO. The tax rate under this
24 subsection shall be fixed at a figure that limits total amount
25 of property tax revenue received exclusively as a result of the
26 reassessment, REVALUATION or change in ratio not to exceed one <--
27 hundred five per cent of the total amount of property tax
28 revenue received in the preceding year, notwithstanding the
29 increased valuations of properties under the annual reassessment <--
30 system.
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1 (c) For the purpose of determining the total amount of
2 revenue received exclusively as a result of the reassessment, <--
3 REVALUATION or change in ratio for the year under subsections
4 (a) and (b), the amount to be levied on newly constructed
5 buildings or structures or on increased valuations based on new
6 improvements made to existing structures shall not be
7 considered.
8 (d) With the approval of the court of common pleas, upon
9 good cause shown, any political subdivision may increase the tax
10 rate authorized under this section.
11 (e) A political subdivision may adjust its calculation of
12 the total amount of revenue to be received exclusively as a
13 result of the reassessment, REVALUATION or change in ratio for <--
14 the year under subsections (a) and (b) by the previous five-year
15 average, excluding the year immediately preceding the effective
16 date of the revised assessment or valuation REASSESSMENT, <--
17 REVALUATION OR CHANGE IN RATIO, annual net increase or decrease
18 in revenue resulting from final dispositions of assessment
19 appeal.
20 (f) (1) To the extent that a political subdivision imposes
21 taxes at a rate in excess of that which is required to produce
22 revenue in accordance with subsections (a) and (b), the
23 political subdivision, upon the filing with it, within three
24 years of payment of the tax, of a written and verified claim for
25 a refund of the excess taxes paid or caused to be paid by any
26 person or corporation of this Commonwealth, shall refund the
27 excess taxes with interest.
28 (2) Interest required under this section shall be paid at
29 the same rate and in the same manner as the Commonwealth is
30 required to pay pursuant to section 806.1(b.1) of the act of
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1 April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code."
2 (3) For purposes of this subsection, the term "political
3 subdivision" means a county, city, borough, incorporated town,
4 township, home rule municipality, school district, vocational
5 school district and county institution district.
6 (g) The provisions of this section shall supersede any
7 provision in a home rule charter, county administrative code,
8 county ordinance or rule or regulation.
9 Section 2. The act is amended by adding a section to read:
10 Section 1980.3. Effect of Appeal; Escrow; Payment under
11 Protest.--Notwithstanding any contrary provisions of the act of
12 June 21, 1939 (P.L.626, No.294), referred to as the Second Class
13 County Assessment Law, any home rule charter or administrative
14 code, the following shall apply in a second class county:
15 (1) An appeal taken from an assessment shall not prevent the
16 collection of taxes based on the assessment appealed.
17 (2) If the assessment shall be reduced then any overpayment
18 of taxes shall be returned to the person or persons who paid the
19 taxes.
20 (3) The appellant may protest the taxes due in writing
21 addressed to the tax collector BOARD OF PROPERTY ASSESSMENT. <--
22 (4) The tax collector APPELLANT shall notify the taxing <--
23 districts of any payment under protest by delivering to them a
24 copy of the protest.
25 (5) The taxing districts shall segregate twenty-five per
26 cent of the amount of the tax paid UNDER PROTEST in a separate <--
27 account and may not expend any portion of any segregated amount
28 unless the taxing districts petition the court, alleging that
29 the segregated amount is unjustly withheld.
30 (6) The court may order the use by the taxing district of a
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1 portion of any segregated amount as the court deems reasonably
2 free from dispute and the remainder of the segregated amount
3 shall be held segregated by the taxing district pending the
4 final disposition of the appeal.
5 (7) Upon final disposition of the appeal the amount of the
6 overpayment found to be due the appellant shall also be a legal <--
7 setoff or credit against future taxes assessed against the BE <--
8 REFUNDED TO THE appellant by the same taxing district.
9 Section 3. This act shall take effect immediately.
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