PRINTER'S NO. 2357
No. 1819 Session of 2001
INTRODUCED BY ROBERTS, CAPPELLI, LAUGHLIN, PALLONE, PIPPY,
SOLOBAY, TIGUE, TRELLO, J. WILLIAMS AND YOUNGBLOOD,
JUNE 21, 2001
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 21, 2001
AN ACT
1 Amending the act of May 21, 1943 (P.L.571, No.254), entitled, as
2 amended, "An act relating to assessment for taxation in
3 counties of the fourth, fifth, sixth, seventh and eighth
4 classes; designating the subjects, property and persons
5 subject to and exempt from taxation for county, borough,
6 town, township, school, except in cities and county
7 institution district purposes; and providing for and
8 regulating the assessment and valuation thereof for such
9 purposes; creating in each such county a board for the
10 assessment and revision of taxes; defining the powers and
11 duties of such boards; providing for the acceptance of this
12 act by cities; regulating the office of ward, borough, town
13 and township assessors; abolishing the office of assistant
14 triennial assessor in townships of the first class; providing
15 for the appointment of a chief assessor, assistant assessors
16 and other employes; providing for their compensation payable
17 by such counties; prescribing certain duties of and certain
18 fees to be collected by the recorder of deeds and municipal
19 officers who issue building permits; imposing duties on
20 taxables making improvements on land and grantees of land;
21 prescribing penalties; and eliminating the triennial
22 assessment," further providing for valuation of persons and
23 property.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 602 of the act of May 21, 1943 (P.L.571,
27 No.254), known as The Fourth to Eighth Class County Assessment
28 Law, amended December 13, 1982 (P.L.1173, No.270) and June 25,
1 1999 (P.L.235, No.34), is amended to read:
2 Section 602. Valuation of Persons and Property.--(a) It
3 shall be the duty of the chief assessor to rate and value all
4 subjects and objects of local taxation, whether for county,
5 township, town, school (except in cities), county institution
6 district, poor or borough purposes, according to the actual
7 value thereof, and in the case of subjects and objects of local
8 taxation other than real property at such rates and prices for
9 which the same would separately bona fide sell. After there has
10 been established and completed for the entire county the
11 permanent system of records consisting of tax maps, property
12 record cards and property owners' index, as required by section
13 three hundred six of the act herein amended, real property shall
14 be assessed at a value based upon an established predetermined
15 ratio, of which proper notice shall be given, not exceeding one
16 hundred per centum (100%) of actual value. Such ratio shall be
17 established and determined by the board of county commissioners.
18 In arriving at actual value the county may utilize the current
19 market value or it may adopt a base year market value. In
20 arriving at such value, the price at which any property may
21 actually have been sold either in the base year or in the
22 current taxable year shall be considered, but shall not be
23 controlling. Instead, such selling price estimated or actual
24 shall be subject to revision by increase or decrease to
25 accomplish equalization with other similar property within the
26 county. In arriving at the actual value, all three methods,
27 namely, cost (reproduction or replacement, as applicable, less
28 depreciation and all forms of obsolescence), comparable sales
29 and income approaches, must be considered in conjunction with
30 one another. After the completion of the permanent system of
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1 records for the county, when valuing real property, the chief
2 assessor shall also take into consideration the actual value of
3 such property as indicated by the use of the permanent system of
4 records, cost charts and land values applied on the basis of
5 zones and districts as well as the general adherence to the
6 established predetermined ratio.
7 (b) After any county has established and completed, for the
8 entire county, the permanent system of records consisting of tax
9 maps, property record cards and property owner's index as
10 required by section 306 of this act, and has made its first
11 county assessment of real property or subsequently makes a
12 county-wide revision of assessment of real property under that
13 system and at values based upon an established predetermined
14 ratio as required by this section or when a county changes its
15 established predetermined ratio, each political subdivision,
16 which hereafter for the first time levies its real estate taxes
17 on that first or revised assessment or valuation, shall, for
18 that first year, reduce its tax rate, if necessary, for the
19 purpose of having the total amount of taxes levied for that year
20 against the real properties contained in the duplicate for the
21 preceding year, equal, in the case of a school district, not
22 more than one hundred and ten per centum, and in the case of any
23 other taxing district, not more than one hundred and five per
24 centum of the total amount it levied on such properties the
25 preceding year, notwithstanding the increased valuations of such
26 properties under the new assessment system. For the purpose of
27 determining the total amount of taxes to be levied for said
28 first year, the amount to be levied on newly constructed
29 buildings or structures or on increased valuations based on new
30 improvements made to existing houses need not be considered. The
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1 tax rate shall be fixed for that year at a figure which will
2 accomplish this purpose. With the approval of the court of
3 common pleas, upon good cause shown, any such political
4 subdivision, after holding at least one public hearing thirty-
5 five days before seeking the approval of the court of common
6 pleas, may increase the tax rate herein prescribed,
7 notwithstanding the provisions of this subsection. No political
8 subdivision shall levy real estate taxes on a county-wide
9 revised assessment until it has been completed for the entire
10 county.
11 (c) Whenever any county makes its first county assessments
12 for taxation purposes in the entire county from valuations made
13 with the use of the permanent system of records, consisting of
14 tax maps, property record cards and property owner's index, as
15 required by section 306 of the act herein amended, and such
16 assessments or valuations are sufficiently completed so that, on
17 or before August 1st in the year 1960, notice has been given in
18 the manner provided by the act herein amended to each owner of
19 property whose valuation or assessment has been changed from the
20 valuation or assessment of the previous year, every taxing body
21 or taxing district in the county which uses county assessments
22 for taxation purposes shall levy its taxes for that year on the
23 new assessments and not on the assessments made for the previous
24 year, and, where necessary, shall amend and revise any levy
25 previously made for that year in order to comply with this
26 provision, notwithstanding any other provisions of law requiring
27 tax levies to be made at certain prescribed times.
28 (d) Whenever any county of the eighth class makes its first
29 county assessments for taxation purposes in the entire county
30 from valuations made with the use of the permanent system of
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1 records, consisting of tax maps, property record cards and
2 property owner's index, as required by section 306 of the act
3 herein amended, and such assessments or valuations are
4 sufficiently completed so that on or before April 15th in the
5 year 1960 all appeals of assessments will have been heard as
6 provided in section 702.1 and all decisions rendered by the
7 board, every taxing body or taxing district in the county which
8 uses county assessments for taxation purposes may levy its taxes
9 for that year on the new assessments and not on the assessments
10 made for the previous year and where necessary may amend and
11 revise any levy previously made for that year in order to comply
12 with this provision notwithstanding any other provisions of law
13 requiring tax levies to be made at certain prescribed times.
14 Section 2. This act shall take effect in 60 days.
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