PRINTER'S NO. 2775
No. 2214 Session of 1993
INTRODUCED BY SANTONI, RUBLEY, ARMSTRONG, BELFANTI, BUNT,
CAPPABIANCA, CARONE, CESSAR, CIVERA, CURRY, DALEY, DEMPSEY,
DRUCE, EGOLF, FAIRCHILD, FAJT, FICHTER, GERLACH, GORDNER,
HALUSKA, HANNA, HENNESSEY, HERMAN, HERSHEY, HUTCHINSON,
KREBS, KUKOVICH, LaGROTTA, LAUB, LAUGHLIN, LEH, MARSICO,
MASLAND, McCALL, MIHALICH, MILLER, MUNDY, NAILOR, PETRONE,
PETTIT, PLATTS, REBER, SATHER, SAYLOR, SCRIMENTI, SEMMEL,
D. W. SNYDER, STEIL, STERN, STRITTMATTER, SURRA, TANGRETTI,
E. Z. TAYLOR, TIGUE, TULLI, VANCE, VAN HORNE, WOZNIAK,
YANDRISEVITS, STEELMAN AND FARGO, NOVEMBER 24, 1993
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 24, 1993
AN ACT
1 Authorizing the State Tax Equalization Board to provide
2 financial assistance to counties for assessment reform;
3 creating a revolving loan fund from a restricted account
4 within the General Fund; providing for loans for assessment
5 improvement, including countywide reassessment; providing for
6 the powers and duties of the State Tax Equalization Board;
7 and making an appropriation.
8 TABLE OF CONTENTS
9 Chapter 1. Preliminary and Administrative Provisions
10 Section 101. Short title.
11 Section 102. Purpose and legislative intent.
12 Section 103. Definitions.
13 Section 104. Creation of advisory committee.
14 Section 105. Powers and duties of committee.
15 Section 106. Committee structure.
16 Section 107. Powers and duties of STEB.
1 Chapter 3. Revolving Loan Fund
2 Section 301. Assessment Reform Revolving Loan Fund.
3 Section 302. Prerequisite for loan.
4 Section 303. Contents of plan.
5 Section 304. Review of plan.
6 Section 305. Disbursement of loan funds.
7 Section 306. Restricted use of loan funds.
8 Section 307. Terms and conditions of loan repayment.
9 Chapter 5. Funding
10 Section 501. Appropriation.
11 Chapter 7. Miscellaneous Provisions
12 Section 701. Effective date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 CHAPTER 1
16 PRELIMINARY AND ADMINISTRATIVE PROVISIONS
17 Section 101. Short title.
18 This act shall be known and may be cited as the Assessment
19 Reform Loan Act.
20 Section 102. Purpose and legislative intent.
21 (a) Policy.--It is hereby declared to be a public policy of
22 this Commonwealth to improve the quality of the real estate
23 assessment process in each of the counties of this Commonwealth.
24 It is further a policy of this Commonwealth to assist counties
25 which desire to reassess valuations of real property by offering
26 a program of loans to accomplish this purpose.
27 (b) Legislative intent.--
28 (1) It is the intent of the General Assembly to provide
29 counties within this Commonwealth with the financial
30 resources necessary to assist them in improving their
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1 respective real estate assessment processes, which
2 improvement may include, but may not be necessarily limited
3 to:
4 (i) Revaluation of real property located within a
5 county.
6 (ii) Improvement of the maintenance and accuracy of
7 a county's assessment systems, procedures and standards
8 and the tax maps, property records and assessment rolls
9 related to them.
10 (iii) Improvement or establishment of a county's
11 appraisal practices, computer-assisted appraisal system
12 functional specifications, specifications for the conduct
13 of a revaluation program and procedures for the conduct
14 of public information programs.
15 (2) By this act, the General Assembly anticipates that
16 those counties eligible for funding under the provisions of
17 this act should be able to bring their established
18 predetermined ratios within the 15% tolerance of the board-
19 established common level ratio in the very near future and
20 maintain that tolerance over an extended period of time.
21 (3) The General Assembly has also concluded that
22 numerous counties within this Commonwealth have not
23 reassessed the value of taxable real estate for many years.
24 Consequently, while the market value of this property has
25 increased dramatically in recent years, counties have either
26 not kept pace with this higher valuation or have
27 unintentionally distributed the tax burden inequitably upon
28 their residents by not uniformly reassessing the entire
29 county.
30 Section 103. Definitions.
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1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Advisory committee." The Assessment Reform Loan Advisory
5 Committee created, empowered and defined under this act.
6 "Board." The State Tax Equalization Board, created under the
7 act of June 27, 1947 (P.L.1046, No.447), referred to as the
8 State Tax Equalization Board Law. Board may also be referred to
9 as "STEB."
10 "Coefficient of dispersion." A measure of the accuracy of
11 assessed values to true values, which measures the average
12 assessment error around the common level ratio as last
13 determined by the State Tax Equalization Board under the act of
14 June 27, 1947 (P.L.1046, No.447), referred to as the State Tax
15 Equalization Board Law.
16 "Common level ratio." The ratio of assessed value to current
17 market value used generally in the county as last determined by
18 the State Tax Equalization Board under the act of June 27, 1947
19 (P.L.1046, No.447), referred to as the State Tax Equalization
20 Board Law.
21 "County." A county within this Commonwealth, regardless of
22 classification, including a county adopting a home rule charter
23 or optional plan of government under the act of April 13, 1972
24 (P.L.184, No.62), known as the Home Rule Charter and Optional
25 Plans Law.
26 "Established predetermined ratio." The ratio of assessed
27 value to market value established by the board of county
28 commissioners or the legislative policymaking body in home rule
29 counties and uniformly applied in determining assessed value in
30 any year.
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1 "Fund." Assessment Reform Revolving Loan Fund.
2 "STEB." The State Tax Equalization Board, created under the
3 act of June 27, 1947 (P.L.1046, No.447), referred to as the
4 State Tax Equalization Board Law. STEB may also be referred to
5 as "board."
6 Section 104. Creation of advisory committee.
7 There is hereby created the Assessment Reform Loan Advisory
8 Committee which shall assist STEB in devising, preparing and
9 promulgating comprehensive standards of assessment reform to be
10 applied uniformly throughout the counties in this Commonwealth.
11 Section 105. Powers and duties of committee.
12 (a) Promulgate standards.--In conjunction with STEB, the
13 advisory committee shall devise, prepare and promulgate
14 comprehensive standards and procedures of assessment reform.
15 (b) Review applications.--In conjunction with STEB, the
16 advisory committee shall review applications for certification
17 by counties seeking to become recipients of loans in order to
18 ascertain whether the county plan is likely to result in an
19 acceptable level of assessment accuracy as defined in this act.
20 Section 106. Committee structure.
21 (a) Membership.--The advisory committee shall consist of
22 seven members, none of whom shall be an employee of the General
23 Assembly. They shall be appointed or designated as follows:
24 (1) The Governor shall appoint three members who are
25 broadly representative of the following groups:
26 (i) Licensed real estate brokers.
27 (ii) Instructors or researchers in various
28 disciplines related to mathematics or statistics who may
29 be employed by an accredited institution of higher
30 learning.
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1 (iii) Citizens with general knowledge or interest in
2 real estate assessment practices.
3 (2) The president pro tempore of the Senate, the
4 Minority Leader of the Senate, the Speaker of the House of
5 Representatives and the Minority Leader of the House of
6 Representatives shall each appoint one member with general
7 knowledge or interest in real estate assessment practices.
8 (b) Term.--The initial term of each member of the advisory
9 committee shall commence upon the date of his appointment and
10 shall expire 30 days after the convening of the next regular
11 session of the General Assembly. Thereafter, the term of each
12 member shall commence upon the date of his appointment and shall
13 expire two years later. All members shall serve until a
14 successor is appointed and qualified, and any member of the
15 advisory committee may serve successive terms. Any vacancy
16 occurring in the membership shall be filled by the appointing
17 power making the original appointment for the duration of the
18 unexpired term.
19 (c) Compensation.--An advisory committee member may not
20 receive a salary but shall be reimbursed for actual expenses
21 incurred in the performance of his official duties.
22 (d) Organization.--The advisory committee shall organize as
23 soon as possible after the appointment of members and shall
24 reorganize upon a change in membership. The advisory committee
25 shall select a chairman and other officers from among its
26 members.
27 (e) Deportment.--A member of the advisory committee, upon
28 clear and convincing evidence of misfeasance, malfeasance or
29 nonfeasance in office, including neglect of duty, may be removed
30 by majority vote of the members of the committee. A member
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1 neglecting or refusing to attend two successive regular
2 meetings, unless prevented by sickness or other necessity, shall
3 be subject to removal by majority vote of the members of the
4 advisory committee.
5 Section 107. Powers and duties of STEB.
6 (a) Maintain data.--STEB shall maintain accurate and current
7 data on the valuations of taxable and tax-exempt real property
8 and the number and status of all parcels of real property in
9 each county as provided to STEB by the respective assessment
10 offices of each county.
11 (b) Establish assessment procedures.--STEB, in conjunction
12 with the advisory committee, shall devise, prepare and
13 promulgate comprehensive assessment standards and procedures to
14 be applied uniformly throughout all counties in this
15 Commonwealth; this shall not include, however, the power of STEB
16 to set a standard or uniform established predetermined ratio of
17 assessed value to market value to be applied throughout all
18 counties of this Commonwealth.
19 (c) Review county systems.--STEB shall review plans
20 submitted by a county to improve that county's assessment
21 systems, procedures and standards which include countywide
22 reassessment programs.
23 (d) Evaluate county plans.--STEB shall either approve or
24 reject plans submitted by a county; however, in the event that
25 STEB rejects a plan submitted by a county, STEB shall provide
26 detailed documentation to enable the county to resubmit an
27 amended plan which is capable of approval by STEB.
28 (e) Review certification applications.--STEB, in conjunction
29 with the advisory committee, shall review applications for
30 certifications by a county to become a recipient of a loan to
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1 assist the county in its ongoing process of assessment reform.
2 (f) Award loans.--STEB shall award loans to eligible
3 counties in accordance with the provisions of this act.
4 (g) Make regulations.--STEB shall promulgate rules and
5 regulations necessary to implement the provisions of this act.
6 CHAPTER 3
7 REVOLVING LOAN FUND
8 Section 301. Assessment Reform Revolving Loan Fund.
9 (a) Creation.--There is hereby created a restricted revenue
10 account within the General Fund in the Treasury Department, to
11 be known as the Assessment Reform Revolving Loan Fund. Into this
12 account shall be credited all appropriations made by the General
13 Assembly, including the continuing appropriation under section
14 501, and the repayment of principal on loans made under this
15 act.
16 (b) Function.--Upon approval of a loan, STEB shall routinely
17 requisition from the fund the amounts allocated by STEB for
18 loans to eligible counties. When and as the amounts so allocated
19 by STEB as loans to counties are repaid to STEB under the terms
20 of the covenants made and entered into with STEB under this act,
21 STEB shall pay the amounts into the fund, it being the intent of
22 this act that the fund shall operate as a revolving fund from
23 which the appropriations and payments made to the fund may be
24 applied and reapplied to the purposes of this act.
25 Section 302. Prerequisite for loan.
26 A county which seeks a loan from the Assessment Reform
27 Revolving Loan Fund shall be required to first submit a detailed
28 plan for assessment reform to STEB.
29 Section 303. Contents of plan.
30 The plan submitted by a county to STEB shall be consistent
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1 with applicable law and STEB requirements and shall include the
2 following specifications:
3 (1) A detailed statement of the current permanent
4 records system of a county's assessment office, including tax
5 maps, property record cards, property owner's index,
6 computerized systems and related matters.
7 (2) A comprehensive explanation of the method by which a
8 county intends to implement assessment reform.
9 (3) In the event that a county seeks financial
10 assistance to conduct a countywide reassessment of the
11 valuations of the real property located within the county,
12 the county shall include within the plan a comprehensive
13 proposed methodology by which the county intends to perform
14 the reassessment.
15 (4) A plan submitted to STEB shall include a detailed
16 statement of the precise costs associated with proposed
17 assessment reform which includes countywide reassessment.
18 Section 304. Review of plan.
19 (a) Preliminary review.--STEB shall review a plan or amended
20 plan submitted by a county to insure compliance with applicable
21 provisions of this act and shall issue a preliminary approval or
22 rejection of the plan within 60 days from the date the plan is
23 received by STEB.
24 (b) Disbursement of funds.--If satisfied that the
25 requirements of this act have been met, STEB shall issue final
26 approval of a plan, including disbursement of approved loan
27 funds, within 60 days of the date of preliminary approval.
28 (c) Rejection statement.--In the event of a preliminary
29 rejection of the plan, STEB shall provide detailed documentation
30 to enable the county to resubmit an amended plan. The
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1 resubmission of an amended plan by a county shall occur within
2 60 days of the date a county receives a preliminary rejection of
3 the original or of any amended plan in order for the county to
4 remain eligible for disbursement of loan funds.
5 (d) Resubmission of amended plans.--Resubmission of an
6 amended plan may be made as many times as may be required by
7 STEB in order for a county to be eligible for disbursement of
8 loan funds.
9 Section 305. Disbursement of loan funds.
10 In calculating a precise amount of loan funds to be disbursed
11 to a county which submits an approved plan, STEB shall first
12 certify the number of parcels of real estate located within the
13 county. Then STEB shall calculate the amount of the loan by
14 certification of a sum of money up to $40 per parcel which, when
15 applied to the number of parcels of real estate within the
16 county, shall constitute the final total amount of loan funds to
17 be disbursed to the county.
18 Section 306. Restricted use of loan funds.
19 (a) General rule.--Loan funds disbursed following submission
20 of an approved plan under the provisions of this act shall be
21 used only to implement the assessment reform set forth in the
22 plan submitted by the county.
23 (b) Restrictions.--None of the proceeds of the loan shall be
24 used to retire "debt" or "unfunded debt" as defined in the act
25 of July 12, 1972 (P.L.781, No.185), known as the Local
26 Government Unit Debt Act, and shall not be subject to the
27 provisions of that act.
28 Section 307. Terms and conditions of loan repayment.
29 A county to which loan funds are disbursed following
30 submission of an approved plan to STEB shall comply with the
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1 following terms and conditions with respect to repayment and
2 shall enter into a covenant with respect to these terms:
3 (1) Loans shall be repayable by a county without
4 interest charged on the principal sum of the loan.
5 (2) Loans shall be repayable by a county in five equal
6 annual installments, the first of which shall become due and
7 payable within 90 days of one of the following dates,
8 whichever occurs first:
9 (i) The date of complete implementation of the
10 approved plan as certified by STEB.
11 (ii) Three years following the date of disbursement
12 of loan funds.
13 (3) The second annual installment payment on any loan
14 shall become due and payable 12 months after the date of
15 payment of the first installment, and subsequent annual
16 installment payments shall be due and payable at 12-month
17 intervals.
18 CHAPTER 5
19 FUNDING
20 Section 501. Appropriation.
21 After deduction of actual expenses by the Department of
22 Revenue, all interest earned on personal income taxes and sales
23 taxes collected by the department on behalf of counties,
24 municipalities and school districts pursuant to the act of
25 December 31, 1965 (P.L.1257, No.511), known as The Local Tax
26 Enabling Act, is appropriated on a continuing basis to the
27 Assessment Reform Revolving Loan Fund.
28 CHAPTER 7
29 MISCELLANEOUS PROVISIONS
30 Section 701. Effective date.
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1 This act shall take effect January 1, 1995.
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