THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE RESOLUTION

INTRODUCED BY EARLL, WOZNIAK, BAKER, FONTANA, ERICKSON, COSTA, MENSCH, TOMLINSON, M. WHITE, VANCE, WASHINGTON, FERLO, WAUGH, BOSCOLA, WILLIAMS, D. WHITE AND STOUT, FEBRUARY 9, 2010

REFERRED TO FINANCE, FEBRUARY 9, 2010  

A RESOLUTION

Directing the Legislative Budget and Finance Committee to

conduct a comprehensive study of the current real property

tax collection systems in this Commonwealth to determine the

impact of the consolidation of those real property tax

collection systems, including the costs and benefits

associated with consolidation, and to compare them to real

property tax collection systems of other states, particularly

those states with demographics similar to this Commonwealth.

WHEREAS, The General Assembly recognizes that the current

systems of real property tax collection utilized by political

subdivisions in this Commonwealth are fragmented and overly

complex; and

WHEREAS, The overall cost of real property tax collection

throughout this Commonwealth is not fully known; and

WHEREAS, Good government demands fiscal efficiency,

responsibility and accountability in all areas of local

government; and

WHEREAS, Numerous political subdivisions in this Commonwealth

have their own elected or appointed tax collectors that are

responsible for the collection of real property taxes; and

WHEREAS, Different rules and requirements are utilized by

real property tax collectors in this Commonwealth; and

WHEREAS, The current systems of real property tax collection

in this Commonwealth may lack adequate oversight and

administrative controls of the governing bodies of the political

subdivisions to ensure effectiveness and efficiency; and

WHEREAS, Political subdivisions in this Commonwealth may

benefit from the consolidation of real property tax collection,

including consolidation of real property tax collection aligned

along countywide or other regional boundaries; and

WHEREAS, No comprehensive study has been published to date

that examines the systems of real property tax collection

currently utilized by political subdivisions in this

Commonwealth or provides recommendations as to the benefits and

the cost reductions that may be recognized by political

subdivisions and taxpayers of this Commonwealth from the

consolidation of real property tax collection; therefore be it

RESOLVED, That the Legislative Budget and Finance Committee

conduct or contract with an independent contractor to conduct a

comprehensive study of the current real property tax collection

systems in this Commonwealth and to determine the impact of the

consolidation of those real property tax collection systems,

including the costs and benefits associated with consolidation

to all political subdivisions in this Commonwealth; and be it

further

RESOLVED, That the study provide an analysis of the

background of the current systems of real property tax

collection in this Commonwealth; and be it further

RESOLVED, That the study include an analysis of the real

property tax collection in other states, particularly other

states with demographics similar to this Commonwealth; and be it

further

Resolved, That the study of real property tax collection of

other states include at least the following:

(1)  what levels of government levy the real property

tax;

(2)  who collects the real property tax, whether it is a

state, regional or local function and whether it is a

government function or contracted out; and

(3)  whether there are uniform procedures throughout the

state;

and be it further

RESOLVED, That the study cover the most recently completed

fiscal year and provide for the following:

(1)  identify the real property tax rates levied and the

total property tax dollars collected by each political

subdivision, disaggregated by county, municipality and school

district;

(2)  identify the number of properties, lots or parcels

that each tax collector is currently responsible for

collecting, the real property taxes and the collection fee

collected by the tax collector, disaggregated by county,

municipality and school district;

(3)  compare the current methods and rates of

compensation, including any costs underwritten by a political

subdivision for its tax collectors and the total number of

tax collectors that are paid under each compensation method,

disaggregated by county, municipality and school district;

(4)  identify the number and locality of each political

subdivision that uses an elected tax collector and those

political subdivisions that have made other tax collection

appointments or arrangements, such as collecting their own

real property taxes or using banks due to a vacancy in the

elected tax collector office, disaggregated by county; 

(5)  analyze geographic patterns, efficiencies, safety of

assets, liquidity, interest earnings, reporting improvements

or other savings, if any, that a political subdivision may

have recognized, and identify those political subdivisions

that do and do not use an elected tax collector;

(6)  analyze and make recommendations, statutory or

otherwise, regarding the current systems of real property tax

collection that require improvements in oversight,

administration, uniformity, enforcement, avoidance of fraud

and waste and tax collector accountability after a review of

other states' statutes, particularly those states with

similar demographics;

(7)  identify the aggregated costs, including type and

amount, incurred by each political subdivision due to the

fragmented systems of real property tax collection in this

Commonwealth and provide a Statewide estimate of cost

savings, if any, from a consolidation of the real property

tax collection systems in this Commonwealth, disaggregated by

county; and

(8)  at a minimum, provide an individualized sample

analysis of at least one county from each classification of

county, except for counties of the first class, that will

provide the actual cost of the current systems of real

property tax collection in that county and an estimate of the

cost savings for that county, if any, that would result from

real property tax consolidation;

and be it further

RESOLVED, That the Legislative Budget and Finance Committee

prepare or contract to prepare a report of its findings to be

posted on its Internet website and to be submitted to the

Governor, the Finance Committee of the Senate, the Local

Government Committee of the Senate, the Finance Committee of the

House of Representatives and the Local Government Committee of

the House of Representatives no later than one year after the

adoption of this resolution.