PRINTER'S NO. 1640
No. 1402 Session of 1975
INTRODUCED BY CIMINI, PETRARCA, CUMBERLAND, TURNER, NOYE,
A. P. KELLY, SHANE, FISHER, ZELLER, ECKENSBERGER, SHUMAN,
USTYNOSKI, GRIECO, MRKONIC AND BARBER, JUNE 4, 1975
REFERRED TO COMMITTEE ON FINANCE, JUNE 9, 1975
AN ACT
1 Amending the act of May 22, 1933 (P.L.853, No.155), entitled "An
2 act relating to taxation; designating the subjects, property
3 and persons subject to and exempt from taxation for all local
4 purposes; providing for and regulating the assessment and
5 valuation of persons, property and subjects of taxation for
6 county purposes, and for the use of those municipal and
7 quasi-municipal corporations which levy their taxes on county
8 assessments and valuations; amending, revising and
9 consolidating the law relating thereto; and repealing
10 existing laws," further providing for temporary tax exemption
11 for improvements or additions to residential property.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 205, act of May 22, 1933 (P.L.853,
15 No.155), known as "The General County Assessment Law," added
16 July 29, 1970 (P.L.642, No.216), is amended by adding a
17 subsection to read:
18 Section 205. Temporary Tax Exemption for Residential
19 Construction.--* * *
20 (c) Improvements and additions to property used as homes or
21 residences which result in an increased assessment shall be
22 valued and reassessed: Provided, however, That for a period of
1 five years after the new assessment, the taxing authority shall
2 use the prior assessment as the basis for imposing taxes. If any
3 property, reassessed and taxed under the provisions of this
4 subsection, is sold within the five-year period, the tax
5 deferred by this subsection for the year in which the sale is
6 made shall be paid in full and collected at settlement.
7 Thereafter taxes shall be based on the new assessment. In no
8 case shall the buyer or seller of the property be required to
9 pay the taxes on the increased assessment exempted by this
10 subsection for the period prior to the year of sale.
11 Section 2. This act shall take effect in 60 days.
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