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                                                      PRINTER'S NO. 2718

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1960 Session of 2007


        INTRODUCED BY HERSHEY, BELFANTI, CARROLL, CUTLER, DENLINGER,
           FAIRCHILD, FLECK, GEIST, GINGRICH, HARHAI, HARHART,
           HENNESSEY, HESS, MILNE, O'NEILL, PYLE, ROSS, SCAVELLO AND
           SIPTROTH, OCTOBER 23, 2007

        REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
           OCTOBER 23, 2007

                                     AN ACT

     1  Amending the act of December 19, 1974 (P.L.973, No.319),
     2     entitled "An act prescribing the procedure under which an
     3     owner may have land devoted to agricultural use, agricultural
     4     reserve use, or forest reserve use, valued for tax purposes
     5     at the value it has for such uses, and providing for
     6     reassessment and certain interest payments when such land is
     7     applied to other uses and making editorial changes,"
     8     providing for payments to certain local taxing authorities to
     9     offset assessments reduced under this act.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  The act of December 19, 1974 (P.L.973, No.319),
    13  known as the Pennsylvania Farmland and Forest Land Assessment
    14  Act of 1974, is amended by adding a section to read:
    15     Section 4.3.  Payments to Impacted Local Taxing
    16  Authorities.--(a)  The General Assembly finds that although all
    17  citizens of this Commonwealth benefit from the preservation of
    18  open space lands, the burden of the shifting of real property
    19  taxes falls heavily on certain local taxing authorities. In
    20  order to ensure that the taxpayers of these local taxing

     1  authorities do not bear too much of the burden of this act, it
     2  is in the public interest to make assistance payments to these
     3  authorities from the General Fund, where the authorities would
     4  otherwise lose ten percent (10%) or more of their assessed value
     5  as a result of this act.
     6     (b)  A local taxing authority that meets the requirements for
     7  eligibility under subsection (d) may apply to the Department of
     8  Community and Economic Development for payment from the
     9  Commonwealth as provided in this section.
    10     (c)  For each fiscal year for which payment under this
    11  section is requested, an application must be submitted to the
    12  Department of Community and Economic Development by April 1 on a
    13  form prescribed by the Department of Community and Economic
    14  Development. The application must include the following:
    15     (1)  The total of the normal assessed values of all real
    16  property within the jurisdiction of the local taxing authority.
    17     (2)  The total of the normal assessed values of all
    18  properties preferentially assessed under this act within the
    19  jurisdiction of the local taxing authority.
    20     (3)  The total of the preferentially assessed values of all
    21  properties preferentially assessed under this act within the
    22  jurisdiction of the local taxing authority.
    23     (4)  The real estate tax rate of the local taxing authority
    24  for its current fiscal year.
    25     (5)  Such other information as may be required by the
    26  Department of Community and Economic Development.
    27  If the local taxing authority fails to file the application
    28  required by this subsection by the date prescribed by this
    29  subsection, or within any extension granted by the Department of
    30  Community and Economic Development, it shall forfeit its
    20070H1960B2718                  - 2 -     

     1  eligibility for payment under this section for that fiscal year.
     2     (d)  If the difference between the amount stated under
     3  subsection (c)(2), less the amount stated under subsection
     4  (c)(3) is equal to or greater than ten percent (10%) of the
     5  amount stated under subsection (c)(1), the local taxing
     6  jurisdiction shall be eligible to receive payments under this
     7  section.
     8     (e)  The Commonwealth shall pay to the eligible local taxing
     9  authority for the fiscal year ninety percent (90%) of the
    10  difference between the amount stated under subsection (c)(2),
    11  less the amount stated under subsection (c)(3), multiplied by
    12  the rate stated under subsection (c)(4). The data stated by the
    13  local taxing authority must be verified by the county assessor
    14  before such payment may be made. The Department of Community and
    15  Economic Development shall make payment to the local taxing
    16  authorities no later than October 1.
    17     (f)  Payments under this section shall be funded by
    18  appropriations from the General Fund. For purposes of making
    19  this payment, the Department of Community and Economic
    20  Development shall make requisition in the manner prescribed by
    21  the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal
    22  Code." If the amount appropriated for purposes of this section
    23  is insufficient to fully fund the payments otherwise required by
    24  this section, the payment to each local taxing authority shall
    25  be reduced by an equal percentage.
    26     (g)  The Department of Community and Economic Development
    27  shall promulgate such rules and regulations as are necessary to
    28  administer this section.
    29     (h)  As used in this section, the term "Local taxing
    30  authority" means a political subdivision having authority to
    20070H1960B2718                  - 3 -     

     1  impose taxes on real estate.
     2     Section 2.  With respect to any fiscal year that includes
     3  December 31, 2009, or any fiscal year prior thereto, the
     4  Department of Community and Economic Development may vary the
     5  application or payment deadlines that would otherwise apply
     6  under section 4.3. For this purpose, the department may adopt
     7  interim regulations, which shall be exempt from review under
     8  section 205 of the act of July 31, 1968 (P.L.769, No.240),
     9  referred to as the Commonwealth Documents Law, section 204(b) of
    10  the act of October 15, 1980 (P.L.950, No.164), known as the
    11  Commonwealth Attorneys Act, and the act of June 25, 1982
    12  (P.L.633, No.181), known as the Regulatory Review Act.
    13     Section 3.  This act shall take effect January 1, 2008.












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