THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WILLIAMS, KITCHEN, STACK, HUGHES, WASHINGTON, FARNESE AND TARTAGLIONE, OCTOBER 26, 2011

AS AMENDED ON THIRD CONSIDERATION, OCTOBER 2, 2012   

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," further providing for distress in

school districts of the first class.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 696 of the act of March 10, 1949 (P.L.30,

No.14), known as the Public School Code of 1949, is amended by

adding a subsection to read:

Section 696.  Distress in School Districts of the First

Class.--* * *

(h.1)  The following apply:

(1)  For the reassessment year and the two (2) years

thereafter, the rate of any tax authorized by a city of the

first class or county of the first class to be levied for a

school district of the first class or dedicated to the school

district of the first class in accordance with subsection (h)(1)

may be adjusted so that the tax authorized by the city of the

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first class or county of the first class for the school district

of the first class yields an amount equal to or greater than the

highest yield of the tax yield on taxes based on assessed values

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of real estate authorized by the city of the first class or

county of the first class for the school district of the first

class, as estimated and certified by the director of finance of

the city of the first class, is equal to an amount equal to or

greater than the highest yield of the taxes based on assessed

values of real estate authorized by the city of the first class

or county of the first class to be levied by the school district

of the first class or dedicated to the school district of the

first class during any of the three (3) full preceding years

prior to the reassessment year. In the third and fourth years

following the reassessment year, the rate of any tax authorized

by the city of the first class or county of the first class to

be levied for the school district of the first class or

dedicated to the school district of the first class shall be not

less than the rate authorized in the immediately preceding year.

(2)  Notwithstanding any other provision of law, in the

reassessment year and each year thereafter, in any year in which

the school district of the first class is subject to a

declaration of distress, the school district of the first class

may levy taxes on real estate under any of the following acts to

the extent the estimated yield on all taxes on real estate for

the year is less than an amount equal to the yield in the year

prior to the reassessment year, increased by an amount

proportional to the increase since the year prior to the

reassessment year in total assessed value of real estate in the

city of the first class:

(i)  Section 652.

(ii)  The act of May 23, 1949 (P.L.1661, No.505), entitled,

"An act to impose a tax on real estate for public school

purposes in school districts of the first class and of the first

class A for current expenses."

(iii)  The act of July 8, 1957 (P.L.548, No.303), entitled

"An act to impose an additional tax on real estate for public

school purposes in school districts of the first class for

current expenses."

(iv)  The act of November 19, 1959 (P.L.1552, No.557),

entitled "An act imposing a tax on real estate for public school

purposes in school districts of the first class and first class

A for current expenses."

(v)  The act of August 8, 1963 (P.L.592, No.310), entitled

"An act to impose an additional tax on real estate for public

school purposes in school districts of the first class for

general public school purposes."

(vi)  Any other statute authorizing the school district of

the first class to levy taxes without authorization of the city

of the first class.

(3)  Paragraph (1) shall affect only the rate of the taxes

authorized by the city of the first class or county of the first

class to be levied by the school district of the first class or

dedicated to the school district of the first class for the

reassessment year and the four (4) years immediately thereafter.

Nothing under this subsection shall:

(i)  Repeal or modify the obligation of the city of the first

class or the county of the first class to fully comply with

subsection (h)(1) for each year while the school district of the

first class is subject to a declaration of distress.

(ii)  Repeal or affect the taxing authority of a city of the

first class under the act of August 5, 1932 (Sp.Sess., P.L.45,

No.45), referred to as the "Sterling Act."

(4)  As used in this subsection, the term "reassessment year"

means the year immediately following the year in which the

director of finance in a city of the first class first certifies

that the total assessed value of all real property in the city

of the first class is at full market value.

* * *

Section 2.  This act shall take effect immediately.