THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GORDNER AND YAW, JUNE 1, 2012

REFERRED TO INTERGOVERNMENTAL OPERATIONS, JUNE 1, 2012  

AN ACT

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

act to enhance community and economic development in this

Commonwealth by restructuring certain administrative

functions and entities; changing the name of the Department

of Commerce to the Department of Community and Economic

Development; transferring functions of the Department of

Community Affairs into the Department of Community and

Economic Development and other agencies; providing for a

Deputy Secretary for Community Affairs and Development in the

Department of Community and Economic Development;

establishing the Center for Local Government Services and the

Local Government Advisory Committee; establishing the Small

Business Advocacy Council; conferring powers and duties on

the Legislative Reference Bureau; and making repeals,"

codifying the State Tax Equalization Board Law into the act;

and making a related repeal.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

as the Community and Economic Development Enhancement Act, is

amended by adding a chapter to read:

CHAPTER 15

STATE TAX EQUALIZATION BOARD

Section 1500.  Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Board."  The State Tax Equalization Board.

Section 1501.  Creation of board.

The State Tax Equalization Board is established within the

department.

Section 1502.  Membership.

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

must be citizens of the United States, residents of this

Commonwealth and qualified electors for a period of at least one

year next preceding their appointments. Each appointee must be

familiar by training or experience with the problems involved in

the work of the board.

(b)  Appointment and service.--

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

Governor for terms of four years each, or until their

successors are appointed and qualified. A vacancy shall be

filled by appointment of the Governor for the unexpired term.

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

opportunity to be heard, be removed for cause by the

Governor.

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

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

an annual salary of $24,000.

Section 1503.  Chairman.

The Governor shall designate one of the members as chairman.

The chairman shall be in charge of the administration of the

board and the transaction of its routine business and shall

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

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

Section 1504.  Quorum.

Two members of the board shall constitute a quorum and any

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

Section 1505.  Individual powers of members of the board.

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

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

held by one or more individual members of the board.

(b)  Effect.--

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

conduct of the board.

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

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

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

and

(ii)  filed in the office of the board.

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

determination, ruling or order shall be the determination,

ruling or order of the board.

(c)  Agents and examiners.--

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

be instituted, the board is authorized to employ special

agents or examiners.

(2)  Agents and examiners under this subsection are

authorized to administer oaths, examine witnesses and receive

evidence, in a locality designated by the board. Evidence

under this paragraph shall have the same force and effect as

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

members under subsections (a) and (b).

Section 1506.  Administrative assistance.

The department shall provide appropriate administrative,

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

accomplish its purpose.

Section 1507.  General powers and duties.

The board has the following powers and duties:

(1)  To determine the market value of taxable real

property in each school district and to conduct

investigations, require information and have access to public

records necessary to make the determination under this

paragraph.

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

board of revision of taxes of such county, and the county

commissioners of each county other than a county of the first

class, to furnish a monthly list of all conveyances or other

transfers of real estate, or any interest in real estate,

recorded within the county during the preceding month,

stating the value of the Federal tax stamps affixed to the

deed for each conveyance, and the assessed valuations for

county tax purposes of the real estate.

(3)  To certify to the Department of Education:

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

all school districts showing the market value of taxable

real property and the assessed valuation for county tax

purposes; and

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

changes in market values which result from properties

going on or off the assessment rolls for taxation

purposes.

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

the board of school directors of each school district

information as pertains to taxable real property in that

school district.

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

aggrieved by a finding or conclusion of the board.

(5)  To:

(i)  investigate the finances and general

circumstances of a school district requesting special aid

from the Department of Education; and

(ii)  advise the Department of Education in making

grants of special aid.

(6)  To make surveys and investigations of the finances

of school districts in the interest of a more equitable

distribution of school support.

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

from them information as necessary for the proper discharge

of its duties.

(8)  To discharge functions imposed upon departmental

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

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

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

ratio of assessed value to market value in each county for

the prior calendar year.

Section 1508.  Compilation of data.

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

data:

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

school district has been sold and all other available matter

relevant to the market value of real property in all school

districts; and

(2)  concerning new sales and improvements and other data

necessary to ensure that the records of the board show the

current present market value of real property in each school

district as nearly as the same can be determined.

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

to examine all of the following:

(1)  Local tax assessment records maintained by local

assessors or county and city assessors and boards,

commissions or departments charged with the duty of revising

assessments.

(2)  Public records.

Section 1509.  Monthly reports by counties and Commonwealth

payments.

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

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

prepare, certify and electronically deliver to the board on

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

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

interest in real estate, recorded within the county during

the preceding month:

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

revision of taxes.

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

first class, the county commissioners.

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

of the Federal tax stamps affixed to the deed for each

conveyance or transfer as set forth on the list and the

assessed valuation for county tax purposes of the real

estate.

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

estate conveyed or transferred within the county during the

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

instrument conveying or transferring the real estate or any

interest in the real estate, shall be prepared and delivered

as follows:

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

deeds shall prepare and deliver the list to the board of

revision.

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

first class, the recorder of deeds shall prepare and

deliver the list to the county commissioners.

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

of taxes of counties of the first class and to the county

commissioners of every county except a county of the first class

the sum of 20¢ for each conveyance or transfer of real estate on

each list prepared, certified and delivered to the board for its

use under this section.

Section 1510.  Annual reports of local assessing officials.

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

with the board a certificate prescribed by the board and on

blanks furnished by the board showing the assessed valuation of

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

the taxes for the then current year are levied:

(1)  The board of revision of taxes of counties of the

first class.

(2)  The board of property assessment appeals and review

of counties of the second class.

(3)  The board for the assessment and revision of taxes

of counties of the third class.

(4)  The county commissioners of any county except for a

county listed under paragraph (1), (2) or (3).

Section 1511.  Market value and percentage of value.

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

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

real property in each school district and the percentage of the

market value as determined by the assessed valuation for county

tax purposes.

Section 1512.  Certification.

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

school district in this Commonwealth has been determined and the

percentage of the value of the assessed valuation for county tax

purposes has been established, the board shall certify the

amounts to the Department of Education and for each school

district to the board of school directors.

Section 1513.  Objections.

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

finding or conclusion of the board affecting the amount of any

Commonwealth subsidy payable to it may file written objections

with the board.

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

board and the school district may submit evidence to show that

the findings of the board are incorrect and present arguments to

substantiate its contentions.

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

submitted and the arguments of the school district, the board

may make modifications and adjustments of its findings and

computations as appropriate or dismiss the objections. The board

shall prepare written findings of fact based upon all the

evidence submitted.

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

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

determine the amounts of Commonwealth educational subsidies.

Section 1514.  Annual adjustments.

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

the market value of real property in each school district to

conform with new data accumulated since the market values for

the last preceding two years were determined. The board shall

determine the percentage of the market value of the assessed

valuation of all real property in the school district on which

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

values, percentages and adjustments shall be certified to the

Department of Education and each school district with the same

right to hearings as provided under section 1513.

Section 1515.  Determination and apportionment.

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

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

board shall certify to the Department of Education the market

value of all real property in each school district.

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

assessed valuation to be used for purposes of computing its

standard reimbursement fraction shall be the market value under

subsection (a).

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

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

determine the amount of funds needed to meet payments required

by law to school districts and vocational schools within the two

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

Department of Education shall allot the payments to the

respective school districts.

Section 1516.  Special aid to school districts.

Before granting any special aid to a school district, the

Department of Education shall submit the request for special aid

to the board. The board shall make its recommendations with

consideration given to the school district's ability to raise

funds by taxation. Before making any recommendation, the board

shall carefully investigate and study the financial

circumstances of the school district and whether or not it has

exhausted its available taxing power not only on real property,

but also on all other available property and subjects of

taxation, and that collection of taxes is being effectively

conducted and enforced. Recommendations shall be transmitted to

the Department of Education.

Section 1516.1.  Common level ratio.

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

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

calendar year.

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

statistically acceptable techniques, including sales ratio

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

public information. The ratio shall be certified to the chief

assessor of each county and shall be admissible as evidence in

any appeal involving real property tax assessments.

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

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

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

appeal de novo the ratio determination to Commonwealth Court.

After receiving the objections, the board may grant a hearing

and may modify or adjust its findings and computations as

appropriate.

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

decreases by ten percent or more, the board shall immediately

review its findings prior to certification of the ratio.

Section 1516.2.  Publication of information by board.

The board shall publish the following information that shall

be updated annually:

(1)  The statistical methods used to calculate the common

level ratio and the State Tax Equalization Board market

ratio.

(2)  Procedures for excluding sales data and how the

procedures compare with practices of the International

Association of Assessing Officers.

(3)  Procedures to ensure that dissimilar properties are

not treated as a single group.

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

procedures to be used when sales samples are not adequate.

If a municipality contracts for services relating to an

assessment, the data collected by the contractor must be

transmitted to the municipality within 60 days of its collection

or development.

Section 1517.  Saving clause.

Nothing in this chapter shall be construed to change or

affect the validity of the assessed valuation of any real

property for the purpose of levying taxes by any political

subdivision.

Section 1518.  (Reserved).

Section 1519.  Repeal.

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

inconsistent with this chapter.

Section 1520.  (Reserved).

Section 2.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of

Chapter 15 of the act.

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

referred to as the State Tax Equalization Board Law, is

repealed.

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

they are inconsistent with this act.

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

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

referred to as the State Tax Equalization Board Law. The

following apply:

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

act, all activities initiated under the State Tax

Equalization Board Law shall continue and remain in full

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

act. Resolutions, orders, regulations, rules and decisions

which were made under the State Tax Equalization Board Law

and which are in effect on the effective date of this section

shall remain in full force and effect until revoked, vacated

or modified under Chapter 15 of the act. Contracts,

obligations and agreements entered into under the State Tax

Equalization Board Law are not affected nor impaired by the

repeal of the State Tax Equalization Board Law.

(2)  The Legislative Reference Bureau has the power and

duty to recodify regulations of the State Tax Equalization

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

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

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

Equalization Board Law is intended only to conform to the

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

intended to change or affect the legislative intent, judicial

construction or administrative interpretation and

implementation of the State Tax Equalization Board Law.

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

following provisions of the act:

(i)  Section 1501.

(ii)  Section 1502(c).

(iii)  Section 1507(3.1) and (8).

(iv)  Section 1516.2.

Section 4.  This act shall take effect immediately.