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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER AND YAW, JUNE 1, 2012 |
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| REFERRED TO INTERGOVERNMENTAL OPERATIONS, JUNE 1, 2012 |
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| AN ACT |
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1 | Amending the act of June 27, 1996 (P.L.403, No.58), entitled "An |
2 | act to enhance community and economic development in this |
3 | Commonwealth by restructuring certain administrative |
4 | functions and entities; changing the name of the Department |
5 | of Commerce to the Department of Community and Economic |
6 | Development; transferring functions of the Department of |
7 | Community Affairs into the Department of Community and |
8 | Economic Development and other agencies; providing for a |
9 | Deputy Secretary for Community Affairs and Development in the |
10 | Department of Community and Economic Development; |
11 | establishing the Center for Local Government Services and the |
12 | Local Government Advisory Committee; establishing the Small |
13 | Business Advocacy Council; conferring powers and duties on |
14 | the Legislative Reference Bureau; and making repeals," |
15 | codifying the State Tax Equalization Board Law into the act; |
16 | and making a related repeal. |
17 | The General Assembly of the Commonwealth of Pennsylvania |
18 | hereby enacts as follows: |
19 | Section 1. The act of June 27, 1996 (P.L.403, No.58), known |
20 | as the Community and Economic Development Enhancement Act, is |
21 | amended by adding a chapter to read: |
22 | CHAPTER 15 |
23 | STATE TAX EQUALIZATION BOARD |
24 | Section 1500. Definitions. |
25 | The following words and phrases when used in this chapter |
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1 | shall have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Board." The State Tax Equalization Board. |
4 | Section 1501. Creation of board. |
5 | The State Tax Equalization Board is established within the |
6 | department. |
7 | Section 1502. Membership. |
8 | (a) Members.--The board shall consist of three members who |
9 | must be citizens of the United States, residents of this |
10 | Commonwealth and qualified electors for a period of at least one |
11 | year next preceding their appointments. Each appointee must be |
12 | familiar by training or experience with the problems involved in |
13 | the work of the board. |
14 | (b) Appointment and service.-- |
15 | (1) The members of the board shall be appointed by the |
16 | Governor for terms of four years each, or until their |
17 | successors are appointed and qualified. A vacancy shall be |
18 | filled by appointment of the Governor for the unexpired term. |
19 | (2) A member of the board may, after notice and an |
20 | opportunity to be heard, be removed for cause by the |
21 | Governor. |
22 | (c) Compensation.--The chairman of the board shall receive |
23 | an annual salary of $25,000, and each other member shall receive |
24 | an annual salary of $24,000. |
25 | Section 1503. Chairman. |
26 | The Governor shall designate one of the members as chairman. |
27 | The chairman shall be in charge of the administration of the |
28 | board and the transaction of its routine business and shall |
29 | execute the orders and policies of the board. The chairman may |
30 | delegate to a member the authority to act for the chairman. |
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1 | Section 1504. Quorum. |
2 | Two members of the board shall constitute a quorum and any |
3 | action of the board shall require the approval of two members. |
4 | Section 1505. Individual powers of members of the board. |
5 | (a) Authority.--Any investigation, inquiry or hearing, which |
6 | the board has power to undertake or hold may be undertaken or |
7 | held by one or more individual members of the board. |
8 | (b) Effect.-- |
9 | (1) Conduct under subsection (a) shall be deemed to be |
10 | conduct of the board. |
11 | (2) In order to be effective, any determination, ruling |
12 | or order based upon conduct under subsection (a) must be: |
13 | (i) approved and confirmed by a quorum of the board; |
14 | and |
15 | (ii) filed in the office of the board. |
16 | (3) Upon compliance with paragraph (2), the |
17 | determination, ruling or order shall be the determination, |
18 | ruling or order of the board. |
19 | (c) Agents and examiners.-- |
20 | (1) In any investigation, inquiry or hearing, which may |
21 | be instituted, the board is authorized to employ special |
22 | agents or examiners. |
23 | (2) Agents and examiners under this subsection are |
24 | authorized to administer oaths, examine witnesses and receive |
25 | evidence, in a locality designated by the board. Evidence |
26 | under this paragraph shall have the same force and effect as |
27 | if taken or received by the board or any one or more of its |
28 | members under subsections (a) and (b). |
29 | Section 1506. Administrative assistance. |
30 | The department shall provide appropriate administrative, |
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1 | legal and technical support as needed by the board in order to |
2 | accomplish its purpose. |
3 | Section 1507. General powers and duties. |
4 | The board has the following powers and duties: |
5 | (1) To determine the market value of taxable real |
6 | property in each school district and to conduct |
7 | investigations, require information and have access to public |
8 | records necessary to make the determination under this |
9 | paragraph. |
10 | (2) To require, in counties of the first class, the |
11 | board of revision of taxes of such county, and the county |
12 | commissioners of each county other than a county of the first |
13 | class, to furnish a monthly list of all conveyances or other |
14 | transfers of real estate, or any interest in real estate, |
15 | recorded within the county during the preceding month, |
16 | stating the value of the Federal tax stamps affixed to the |
17 | deed for each conveyance, and the assessed valuations for |
18 | county tax purposes of the real estate. |
19 | (3) To certify to the Department of Education: |
20 | (i) by July 1 of each odd-numbered year, a list of |
21 | all school districts showing the market value of taxable |
22 | real property and the assessed valuation for county tax |
23 | purposes; and |
24 | (ii) by July 1 of each even-numbered year, the |
25 | changes in market values which result from properties |
26 | going on or off the assessment rolls for taxation |
27 | purposes. |
28 | (3.1) By July 1 of each odd-numbered year, to furnish to |
29 | the board of school directors of each school district |
30 | information as pertains to taxable real property in that |
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1 | school district. |
2 | (4) To hear and decide appeals of parties that are |
3 | aggrieved by a finding or conclusion of the board. |
4 | (5) To: |
5 | (i) investigate the finances and general |
6 | circumstances of a school district requesting special aid |
7 | from the Department of Education; and |
8 | (ii) advise the Department of Education in making |
9 | grants of special aid. |
10 | (6) To make surveys and investigations of the finances |
11 | of school districts in the interest of a more equitable |
12 | distribution of school support. |
13 | (7) To subpoena State and local officials and to require |
14 | from them information as necessary for the proper discharge |
15 | of its duties. |
16 | (8) To discharge functions imposed upon departmental |
17 | administrative boards by the act of April 9, 1929 (P.L.177, |
18 | No.175), known as The Administrative Code of 1929. |
19 | (9) To establish, annually, by July 1, a common level |
20 | ratio of assessed value to market value in each county for |
21 | the prior calendar year. |
22 | Section 1508. Compilation of data. |
23 | (a) Requirement.--The board shall accumulate and compile |
24 | data: |
25 | (1) showing the prices at which real property in each |
26 | school district has been sold and all other available matter |
27 | relevant to the market value of real property in all school |
28 | districts; and |
29 | (2) concerning new sales and improvements and other data |
30 | necessary to ensure that the records of the board show the |
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1 | current present market value of real property in each school |
2 | district as nearly as the same can be determined. |
3 | (b) Authority.--In compiling data, the board is authorized |
4 | to examine all of the following: |
5 | (1) Local tax assessment records maintained by local |
6 | assessors or county and city assessors and boards, |
7 | commissions or departments charged with the duty of revising |
8 | assessments. |
9 | (2) Public records. |
10 | Section 1509. Monthly reports by counties and Commonwealth |
11 | payments. |
12 | (a) Duty.--The following shall apply: |
13 | (1) It shall be the duty of the following entities to |
14 | prepare, certify and electronically deliver to the board on |
15 | the 15th day of each month a list as prescribed by the board |
16 | of all conveyances or other transfers of real estate, or any |
17 | interest in real estate, recorded within the county during |
18 | the preceding month: |
19 | (i) In counties of the first class, the board of |
20 | revision of taxes. |
21 | (ii) In all counties except for a county of the |
22 | first class, the county commissioners. |
23 | (2) The list under paragraph (1) shall include the value |
24 | of the Federal tax stamps affixed to the deed for each |
25 | conveyance or transfer as set forth on the list and the |
26 | assessed valuation for county tax purposes of the real |
27 | estate. |
28 | (3) At the end of each month a list of all the real |
29 | estate conveyed or transferred within the county during the |
30 | month, stating the value of Federal tax stamps affixed to the |
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1 | instrument conveying or transferring the real estate or any |
2 | interest in the real estate, shall be prepared and delivered |
3 | as follows: |
4 | (i) In counties of the first class, the recorder of |
5 | deeds shall prepare and deliver the list to the board of |
6 | revision. |
7 | (ii) In all counties except for a county of the |
8 | first class, the recorder of deeds shall prepare and |
9 | deliver the list to the county commissioners. |
10 | (b) Payment.--The board shall pay to the board of revision |
11 | of taxes of counties of the first class and to the county |
12 | commissioners of every county except a county of the first class |
13 | the sum of 20ยข for each conveyance or transfer of real estate on |
14 | each list prepared, certified and delivered to the board for its |
15 | use under this section. |
16 | Section 1510. Annual reports of local assessing officials. |
17 | By June 1 of each year, the following entities shall file |
18 | with the board a certificate prescribed by the board and on |
19 | blanks furnished by the board showing the assessed valuation of |
20 | all real property in each school district in the county on which |
21 | the taxes for the then current year are levied: |
22 | (1) The board of revision of taxes of counties of the |
23 | first class. |
24 | (2) The board of property assessment appeals and review |
25 | of counties of the second class. |
26 | (3) The board for the assessment and revision of taxes |
27 | of counties of the third class. |
28 | (4) The county commissioners of any county except for a |
29 | county listed under paragraph (1), (2) or (3). |
30 | Section 1511. Market value and percentage of value. |
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1 | From the data compiled under section 1510, the board shall as |
2 | soon as possible after July 1, determine the market value of |
3 | real property in each school district and the percentage of the |
4 | market value as determined by the assessed valuation for county |
5 | tax purposes. |
6 | Section 1512. Certification. |
7 | As soon as the market value of the real property in each |
8 | school district in this Commonwealth has been determined and the |
9 | percentage of the value of the assessed valuation for county tax |
10 | purposes has been established, the board shall certify the |
11 | amounts to the Department of Education and for each school |
12 | district to the board of school directors. |
13 | Section 1513. Objections. |
14 | (a) School district.--Any school district aggrieved by any |
15 | finding or conclusion of the board affecting the amount of any |
16 | Commonwealth subsidy payable to it may file written objections |
17 | with the board. |
18 | (b) Hearing.--The board shall conduct a hearing at which the |
19 | board and the school district may submit evidence to show that |
20 | the findings of the board are incorrect and present arguments to |
21 | substantiate its contentions. |
22 | (c) Findings.--Following review of all the evidence |
23 | submitted and the arguments of the school district, the board |
24 | may make modifications and adjustments of its findings and |
25 | computations as appropriate or dismiss the objections. The board |
26 | shall prepare written findings of fact based upon all the |
27 | evidence submitted. |
28 | (d) Final valuations.--Any valuations adjusted under |
29 | subsection (c) shall form the basis of valuations used to |
30 | determine the amounts of Commonwealth educational subsidies. |
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1 | Section 1514. Annual adjustments. |
2 | By July 1 of each odd-numbered year, the board shall adjust |
3 | the market value of real property in each school district to |
4 | conform with new data accumulated since the market values for |
5 | the last preceding two years were determined. The board shall |
6 | determine the percentage of the market value of the assessed |
7 | valuation of all real property in the school district on which |
8 | county taxes for the then current year are levied. The market |
9 | values, percentages and adjustments shall be certified to the |
10 | Department of Education and each school district with the same |
11 | right to hearings as provided under section 1513. |
12 | Section 1515. Determination and apportionment. |
13 | (a) Certification.--As soon as possible each odd-numbered |
14 | year and after the final adjustment of values by the board, the |
15 | board shall certify to the Department of Education the market |
16 | value of all real property in each school district. |
17 | (b) Standard reimbursement fraction.--Each school district's |
18 | assessed valuation to be used for purposes of computing its |
19 | standard reimbursement fraction shall be the market value under |
20 | subsection (a). |
21 | (c) Payments.--Every two years the market value under |
22 | subsection (a) shall be used by the Department of Education to |
23 | determine the amount of funds needed to meet payments required |
24 | by law to school districts and vocational schools within the two |
25 | fiscal years beginning every June 1 and ending every May 31. The |
26 | Department of Education shall allot the payments to the |
27 | respective school districts. |
28 | Section 1516. Special aid to school districts. |
29 | Before granting any special aid to a school district, the |
30 | Department of Education shall submit the request for special aid |
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1 | to the board. The board shall make its recommendations with |
2 | consideration given to the school district's ability to raise |
3 | funds by taxation. Before making any recommendation, the board |
4 | shall carefully investigate and study the financial |
5 | circumstances of the school district and whether or not it has |
6 | exhausted its available taxing power not only on real property, |
7 | but also on all other available property and subjects of |
8 | taxation, and that collection of taxes is being effectively |
9 | conducted and enforced. Recommendations shall be transmitted to |
10 | the Department of Education. |
11 | Section 1516.1. Common level ratio. |
12 | (a) Establishment.--The board shall annually, prior to July |
13 | 1, establish for each county a common level ratio for the prior |
14 | calendar year. |
15 | (b) Method.--In arriving at the ratio, the board shall use |
16 | statistically acceptable techniques, including sales ratio |
17 | studies. The board's method in arriving at the ratio shall be |
18 | public information. The ratio shall be certified to the chief |
19 | assessor of each county and shall be admissible as evidence in |
20 | any appeal involving real property tax assessments. |
21 | (c) Appeal.--Any political subdivision or taxpayer aggrieved |
22 | by any finding, conclusion, method or technique of the board |
23 | made under this section may, in writing, file objections to and |
24 | appeal de novo the ratio determination to Commonwealth Court. |
25 | After receiving the objections, the board may grant a hearing |
26 | and may modify or adjust its findings and computations as |
27 | appropriate. |
28 | (d) Review.--If the common level ratio increases or |
29 | decreases by ten percent or more, the board shall immediately |
30 | review its findings prior to certification of the ratio. |
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1 | Section 1516.2. Publication of information by board. |
2 | The board shall publish the following information that shall |
3 | be updated annually: |
4 | (1) The statistical methods used to calculate the common |
5 | level ratio and the State Tax Equalization Board market |
6 | ratio. |
7 | (2) Procedures for excluding sales data and how the |
8 | procedures compare with practices of the International |
9 | Association of Assessing Officers. |
10 | (3) Procedures to ensure that dissimilar properties are |
11 | not treated as a single group. |
12 | (4) Standards to be used for sales sample size and |
13 | procedures to be used when sales samples are not adequate. |
14 | If a municipality contracts for services relating to an |
15 | assessment, the data collected by the contractor must be |
16 | transmitted to the municipality within 60 days of its collection |
17 | or development. |
18 | Section 1517. Saving clause. |
19 | Nothing in this chapter shall be construed to change or |
20 | affect the validity of the assessed valuation of any real |
21 | property for the purpose of levying taxes by any political |
22 | subdivision. |
23 | Section 1518. (Reserved). |
24 | Section 1519. Repeal. |
25 | All acts and parts of acts are repealed insofar as they are |
26 | inconsistent with this chapter. |
27 | Section 1520. (Reserved). |
28 | Section 2. Repeals are as follows: |
29 | (1) The General Assembly declares that the repeal under |
30 | paragraph (2) is necessary to effectuate the addition of |
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1 | Chapter 15 of the act. |
2 | (2) The act of June 27, 1947 (P.L.1046, No.447), |
3 | referred to as the State Tax Equalization Board Law, is |
4 | repealed. |
5 | (3) All acts and parts of acts are repealed insofar as |
6 | they are inconsistent with this act. |
7 | Section 3. The addition of Chapter 15 of the act is a |
8 | continuation of the act of June 27, 1947 (P.L.1046, No.447), |
9 | referred to as the State Tax Equalization Board Law. The |
10 | following apply: |
11 | (1) Except as otherwise provided in Chapter 15 of the |
12 | act, all activities initiated under the State Tax |
13 | Equalization Board Law shall continue and remain in full |
14 | force and effect and may be completed under Chapter 15 of the |
15 | act. Resolutions, orders, regulations, rules and decisions |
16 | which were made under the State Tax Equalization Board Law |
17 | and which are in effect on the effective date of this section |
18 | shall remain in full force and effect until revoked, vacated |
19 | or modified under Chapter 15 of the act. Contracts, |
20 | obligations and agreements entered into under the State Tax |
21 | Equalization Board Law are not affected nor impaired by the |
22 | repeal of the State Tax Equalization Board Law. |
23 | (2) The Legislative Reference Bureau has the power and |
24 | duty to recodify regulations of the State Tax Equalization |
25 | Board to effectuate the addition of section 1501 of the act. |
26 | (3) Except as set forth in paragraph (4), any difference |
27 | in language between Chapter 15 of the act and the State Tax |
28 | Equalization Board Law is intended only to conform to the |
29 | style of the addition of a new chapter to the act and is not |
30 | intended to change or affect the legislative intent, judicial |
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1 | construction or administrative interpretation and |
2 | implementation of the State Tax Equalization Board Law. |
3 | (4) Paragraph (3) does not apply to the addition of the |
4 | following provisions of the act: |
5 | (i) Section 1501. |
6 | (ii) Section 1502(c). |
7 | (iii) Section 1507(3.1) and (8). |
8 | (iv) Section 1516.2. |
9 | Section 4. This act shall take effect immediately. |
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