| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 2233, 2268 | PRINTER'S NO. 2331 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, YAW, RAFFERTY, PILEGGI, YUDICHAK, MENSCH, ARGALL, D. WHITE, EARLL, SCHWANK AND WARD, JUNE 1, 2012 |
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| AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 26, 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. |
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1 | The following words and phrases when used in this chapter |
2 | shall have the meanings given to them in this section unless the |
3 | context clearly indicates otherwise: |
4 | "Board." The State Tax Equalization Board. |
5 | Section 1501. Creation of board. |
6 | The State Tax Equalization Board is established within the |
7 | department. |
8 | Section 1502. Membership. |
9 | (a) Members.--The board shall consist of three members who |
10 | must be citizens of the United States, residents of this |
11 | Commonwealth and qualified electors for a period of at least one |
12 | year next preceding their appointments. Each appointee must be |
13 | familiar by training or experience with the problems involved in |
14 | the work of the board. |
15 | (b) Appointment and service.-- |
16 | (1) The members of the board shall be appointed by the |
17 | Governor for terms of four years each, or until their |
18 | successors are appointed and qualified. A vacancy shall be |
19 | filled by appointment of the Governor for the unexpired term. |
20 | (2) A member of the board may, after notice and an |
21 | opportunity to be heard, be removed for cause by the |
22 | Governor. |
23 | (c) Compensation.--The chairman of the board shall receive |
24 | an annual salary of $25,000, and each other member shall receive |
25 | an annual salary of $24,000. |
26 | Section 1503. Chairman. |
27 | The Governor shall designate one of the members as chairman. |
28 | The chairman shall be in charge of the administration of the |
29 | board and the transaction of its routine business and shall |
30 | execute the orders and policies of the board. The chairman may |
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1 | delegate to a member the authority to act for the chairman. |
2 | Section 1504. Quorum. |
3 | Two members of the board shall constitute a quorum and any |
4 | action of the board shall require the approval of two members. |
5 | Section 1505. Individual powers of members of the board. |
6 | (a) Authority.--Any investigation, inquiry or hearing, which |
7 | the board has power to undertake or hold may be undertaken or |
8 | held by one or more individual members of the board. |
9 | (b) Effect.-- |
10 | (1) Conduct under subsection (a) shall be deemed to be |
11 | conduct of the board. |
12 | (2) In order to be effective, any determination, ruling |
13 | or order based upon conduct under subsection (a) must be: |
14 | (i) approved and confirmed by a quorum of the board; |
15 | and |
16 | (ii) filed in the office of the board. |
17 | (3) Upon compliance with paragraph (2), the |
18 | determination, ruling or order shall be the determination, |
19 | ruling or order of the board. |
20 | (c) Agents and examiners.-- |
21 | (1) In any investigation, inquiry or hearing, which may |
22 | be instituted, the board is authorized to employ special |
23 | agents or examiners. |
24 | (2) Agents and examiners under this subsection are |
25 | authorized to administer oaths, examine witnesses and receive |
26 | evidence, in a locality designated by the board. Evidence |
27 | under this paragraph shall have the same force and effect as |
28 | if taken or received by the board or any one or more of its |
29 | members under subsections (a) and (b). |
30 | Section 1506. Administrative assistance. |
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1 | The department shall provide appropriate administrative, |
2 | legal and technical support as needed by the board in order to |
3 | accomplish its purpose. |
4 | Section 1507. General powers and duties. |
5 | The board has the following powers and duties: |
6 | (1) To determine the market value of taxable real |
7 | property in each school district and to conduct |
8 | investigations, require information and have access to public |
9 | records necessary to make the determination under this |
10 | paragraph. |
11 | (2) To require, in counties of the first class, the |
12 | board of revision of taxes of such county, or its successor |
13 | agency, and the county commissioners, or the body or |
14 | individual exercising equivalent authority, of each county |
15 | other than a county of the first class, to furnish a monthly |
16 | list of all conveyances or other transfers of real estate, or |
17 | any interest in real estate, recorded within the county |
18 | during the preceding month, stating the value of the Federal |
19 | tax stamps affixed to the deed for each conveyance, and the |
20 | assessed valuations for county tax purposes of the real |
21 | estate. |
22 | (3) To certify to the Department of Education and to the |
23 | board of school directors of each school district: |
24 | (i) by July 1 of each even-numbered odd-numbered | <-- |
25 | year, a list of all school districts showing the market |
26 | value of taxable real property and the assessed valuation |
27 | for county tax purposes; and |
28 | (ii) by July 1 of each odd-numbered even-numbered | <-- |
29 | year, the changes in market values which result from |
30 | properties going on or off the assessment rolls for |
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1 | taxation purposes. |
2 | (3.1) By July 1 of each odd-numbered year, to furnish to |
3 | the board of school directors of each school district |
4 | information as pertains to taxable real property in that |
5 | school district. |
6 | (4) To hear and decide appeals of parties that are |
7 | aggrieved by a finding or conclusion of the board. |
8 | (5) To: |
9 | (i) investigate the finances and general |
10 | circumstances of a school district requesting special aid |
11 | from the Department of Education; and |
12 | (ii) advise the Department of Education in making |
13 | grants of special aid. |
14 | (6) To make surveys and investigations of the finances |
15 | of school districts in the interest of a more equitable |
16 | distribution of school support. |
17 | (7) To subpoena State and local officials and to require |
18 | from them information as necessary for the proper discharge |
19 | of its duties. |
20 | (8) To discharge functions imposed upon departmental |
21 | administrative boards by the act of April 9, 1929 (P.L.177, |
22 | No.175), known as The Administrative Code of 1929. |
23 | (9) To establish, annually, by July 1, a common level |
24 | ratio of assessed value to market value in each county for |
25 | the prior calendar year. |
26 | (10) To meet as necessary and at least every other month |
27 | to approve or confirm any determination, ruling or order |
28 | pursuant to section 1505. |
29 | (11) To create in consultation with the County | <-- |
30 | Commissioners Association of Pennsylvania and the Assessors' |
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1 | Association of Pennsylvania an operations manual to be |
2 | utilized by counties when completing a countywide |
3 | reassessment or when valuating property. |
4 | (12) To create and maintain a centralized and |
5 | standardized Statewide database for counties to utilize and |
6 | report to the board all property values and data as required |
7 | by the board. |
8 | (13) To develop and maintain Statewide training programs |
9 | for all persons involved in the valuation of property within |
10 | all of the counties of this Commonwealth. These programs |
11 | shall provide basic and detailed training that shall be |
12 | completed and passed by any person employed to collect, |
13 | compile, compare or handle data associated with the valuation |
14 | of any property for purposes of reassessment valuation within |
15 | this Commonwealth. |
16 | (14) To develop standards on contracting for assessment |
17 | services in consultation with the County Commissioners |
18 | Association of Pennsylvania and the Assessors' Association of |
19 | Pennsylvania, taking into consideration the standards |
20 | published by the International Association of Assessing |
21 | Officers. The standards shall: |
22 | (i) Require that the methodology used by any person, |
23 | company or organization to value property in this |
24 | Commonwealth be made public. |
25 | (ii) State that all data and calculations are the |
26 | property of the county and this Commonwealth. |
27 | Section 1508. Compilation of data. |
28 | (a) Requirement.--The board shall accumulate and compile |
29 | data: |
30 | (1) showing the prices at which real property in each |
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1 | school district has been sold and all other available matter |
2 | relevant to the market value of real property in all school |
3 | districts; and |
4 | (2) concerning new sales and improvements and other data |
5 | necessary to ensure that the records of the board show the |
6 | current present market value of real property in each school |
7 | district as nearly as the same can be determined. |
8 | (b) Authority.--In compiling data, the board is authorized |
9 | to examine all of the following: |
10 | (1) Local tax assessment records maintained by local |
11 | assessors or county and city assessors and boards, |
12 | commissions or departments charged with the duty of revising |
13 | assessments. |
14 | (2) Public records. |
15 | Section 1509. Monthly reports by counties and Commonwealth |
16 | payments. |
17 | (a) Duty.--The following shall apply: |
18 | (1) It shall be the duty of the following entities to |
19 | prepare, certify and electronically deliver to the board on |
20 | the 15th day of each month a list as prescribed by the board |
21 | of all conveyances or other transfers of real estate or any |
22 | interest in real estate, conveyed consistent with any |
23 | procedures for excluding sales data established in accordance |
24 | with section 1516.2(2), recorded within the county during the |
25 | preceding month: |
26 | (i) In counties of the first class, the board of |
27 | revision of taxes or it its successor agency. | <-- |
28 | (ii) In counties of the second class, the office of |
29 | property assessment or its successor agency. |
30 | (iii) In counties of the second class A through |
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1 | eighth class, the board as defined in 53 Pa.C.S. § 8802 |
2 | (relating to definitions). |
3 | (2) The list under paragraph (1) shall include the value |
4 | of the Federal tax stamps affixed to the deed for each |
5 | conveyance or transfer as set forth on the list and the |
6 | assessed valuation for county tax purposes of the real |
7 | estate. |
8 | (3) At the end of each month, a list of all the real |
9 | estate conveyed or transferred within the county during the |
10 | month, stating the value of Federal tax stamps affixed to the |
11 | instrument conveying or transferring the real estate or any |
12 | interest in the real estate, shall be prepared and delivered |
13 | as follows: |
14 | (i) In counties of the first class, the recorder of |
15 | deeds shall prepare and deliver the list to the board of |
16 | revision of taxes or its successor agency. | <-- |
17 | (ii) In all counties except for a county of the |
18 | first class, the recorder of deeds shall prepare and |
19 | deliver the list to the county commissioners or the body | <-- |
20 | or agency exercising equivalent authority. |
21 | (b) Payment.--The board shall pay to the board of revision |
22 | of taxes, or it its successor agency, of counties of the first | <-- |
23 | class and to the county commissioners, or the body or individual |
24 | exercising equivalent authority, of every county except a county |
25 | of the first class the sum of 20ยข for each conveyance or |
26 | transfer of real estate on each list prepared, certified and |
27 | delivered to the board for its use under this section. |
28 | Section 1510. Annual reports of local assessing officials. |
29 | By June 1 of each year, the following entities shall file |
30 | with the board a certificate prescribed by the board and on |
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1 | blanks furnished by the board showing the assessed valuation of |
2 | all real property in each school district in the county on which |
3 | the taxes for the then current year are levied: |
4 | (1) The board of revision of taxes, or its successor |
5 | agency, of counties of the first class. |
6 | (2) The office of property assessment, or its successor |
7 | agency, of counties of the second class. |
8 | (3) The board as defined in 53 Pa.C.S. § 8802 (relating |
9 | to definitions). |
10 | Section 1511. Market value and percentage of value. |
11 | From the data compiled under section 1510, the board shall as |
12 | soon as possible after July 1, determine the market value of |
13 | real property in each school district and the percentage of the |
14 | market value as determined by the assessed valuation for county |
15 | tax purposes. |
16 | Section 1512. Certification. |
17 | As soon as the market value of the real property in each |
18 | school district in this Commonwealth has been determined and the |
19 | percentage of the value of the assessed valuation for county tax |
20 | purposes has been established, the board shall certify the |
21 | amounts to the Department of Education and for each school |
22 | district to the board of school directors. |
23 | Section 1513. Objections. |
24 | (a) School district.--Any school district aggrieved by any |
25 | finding or conclusion of the board affecting the amount of any |
26 | Commonwealth subsidy payable to it may file written objections |
27 | with the board. |
28 | (b) Hearing.--The board shall conduct a hearing at which the |
29 | board and the school district may submit evidence to show that |
30 | the findings of the board are incorrect and present arguments to |
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1 | substantiate its contentions. |
2 | (c) Findings.--Following review of all the evidence |
3 | submitted and the arguments of the school district, the board |
4 | may make modifications and adjustments of its findings and |
5 | computations as appropriate or dismiss the objections. The board |
6 | shall prepare written findings of fact based upon all the |
7 | evidence submitted. |
8 | (d) Final valuations.--Any valuations adjusted under |
9 | subsection (c) shall form the basis of valuations used to |
10 | determine the amounts of Commonwealth educational subsidies. |
11 | Section 1514. Annual adjustments. |
12 | By July 1 of each even-numbered odd-numbered year, the board | <-- |
13 | shall adjust the market value of real property in each school |
14 | district to conform with new data accumulated since the market |
15 | values for the last preceding two years were determined. The |
16 | board shall determine the percentage of the market value of the |
17 | assessed valuation of all real property in the school district |
18 | on which county taxes for the then current year are levied. The |
19 | market values, percentages and adjustments shall be certified to |
20 | the Department of Education and each school district with the |
21 | same right to hearings as provided under section 1513. |
22 | Section 1515. Determination and apportionment. |
23 | (a) Certification.--As soon as possible each odd-numbered |
24 | year and after the final adjustment of values by the board, the |
25 | board shall certify to the Department of Education the market |
26 | value of all real property in each school district. |
27 | (b) Standard reimbursement fraction.--Each school district's |
28 | assessed valuation to be used for purposes of computing its |
29 | standard reimbursement fraction shall be the market value under |
30 | subsection (a). |
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1 | (c) Payments.--Every two years the market value under |
2 | subsection (a) shall be used by the Department of Education to |
3 | determine the amount of funds needed to meet payments required |
4 | by law to school districts and vocational schools within the two |
5 | fiscal years beginning every June 1 and ending every May 31. The |
6 | Department of Education shall allot the payments to the |
7 | respective school districts. |
8 | Section 1516. Special aid to school districts. |
9 | Before granting any special aid to a school district, the |
10 | Department of Education shall submit the request for special aid |
11 | to the board. The board shall make its recommendations with |
12 | consideration given to the school district's ability to raise |
13 | funds by taxation. Before making any recommendation, the board |
14 | shall carefully investigate and study the financial |
15 | circumstances of the school district and whether or not it has |
16 | exhausted its available taxing power not only on real property, |
17 | but also on all other available property and subjects of |
18 | taxation, and that collection of taxes is being effectively |
19 | conducted and enforced. Recommendations shall be transmitted to |
20 | the Department of Education. |
21 | Section 1516.1. Common level ratio. |
22 | (a) Establishment.--The board shall annually, prior to July |
23 | 1, establish for each county a common level ratio for the prior |
24 | calendar year. |
25 | (b) Method.--In arriving at the ratio, the board shall use |
26 | statistically acceptable techniques, including sales ratio |
27 | studies. The board's method in arriving at the ratio shall be |
28 | public information. The ratio shall be certified to the chief |
29 | assessor of each county and shall be admissible as evidence in |
30 | any appeal involving real property tax assessments. |
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1 | (c) Appeal.--Any political subdivision or taxpayer aggrieved |
2 | by any finding, conclusion, method or technique of the board |
3 | made under this section may, in writing, file objections to and |
4 | appeal de novo the ratio determination to Commonwealth Court. |
5 | After receiving the objections, the board may grant a hearing |
6 | and may modify or adjust its findings and computations as |
7 | appropriate. |
8 | (d) Review.--If the common level ratio increases or |
9 | decreases by ten percent or more, the board shall immediately |
10 | review its findings prior to certification of the ratio. |
11 | Section 1516.2. Publication of information by board. |
12 | The board shall publish the following information that shall |
13 | be updated annually: |
14 | (1) The statistical methods used to calculate the common |
15 | level ratio and the State Tax Equalization Board market |
16 | ratio. |
17 | (2) Procedures for excluding sales data and how the |
18 | procedures compare with practices of the International |
19 | Association of Assessing Officers. |
20 | (3) Procedures to ensure that dissimilar properties are |
21 | not treated as a single group. |
22 | (4) Standards to be used for sales sample size and |
23 | procedures to be used when sales samples are not adequate. |
24 | If a municipality contracts for services relating to an |
25 | assessment, the data collected by the contractor must be |
26 | transmitted to the municipality within 60 days of its collection |
27 | or development. |
28 | Section 1517. Saving clause. |
29 | Nothing in this chapter shall be construed to change or |
30 | affect the validity of the assessed valuation of any real |
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1 | property for the purpose of levying taxes by any political |
2 | subdivision. |
3 | Section 1518. (Reserved). |
4 | Section 1519. Repeal. |
5 | All acts and parts of acts are repealed insofar as they are |
6 | inconsistent with this chapter. |
7 | Section 1520. (Reserved). |
8 | Section 1521. Funding contingency. | <-- |
9 | The board's authority to carry out the duties set forth in |
10 | section 1507(11), (12), (13) and (14) is contingent upon receipt |
11 | of an appropriation in an amount sufficient to complete these |
12 | duties. |
13 | Section 2. Repeals are as follows: |
14 | (1) The General Assembly declares that the repeal under |
15 | paragraph (2) is necessary to effectuate the addition of |
16 | Chapter 15 of the act. |
17 | (2) The act of June 27, 1947 (P.L.1046, No.447), |
18 | referred to as the State Tax Equalization Board Law, is |
19 | repealed. |
20 | (3) All acts and parts of acts are repealed insofar as |
21 | they are inconsistent with this act. |
22 | Section 3. The addition of Chapter 15 of the act is a |
23 | continuation of the act of June 27, 1947 (P.L.1046, No.447), |
24 | referred to as the State Tax Equalization Board Law. The |
25 | following apply: |
26 | (1) Except as otherwise provided in Chapter 15 of the |
27 | act, all activities initiated under the State Tax |
28 | Equalization Board Law shall continue and remain in full |
29 | force and effect and may be completed under Chapter 15 of the |
30 | act. Resolutions, orders, regulations, rules , decisions and |
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1 | sequence of methods used for arriving at market value for |
2 | odd-numbered and even-numbered years which were made under |
3 | the State Tax Equalization Board Law and which are in effect |
4 | on the effective date of this section shall remain in full |
5 | force and effect until revoked, vacated or modified under |
6 | Chapter 15 of the act. Contracts, obligations and agreements |
7 | entered into under the State Tax Equalization Board Law are |
8 | not affected nor impaired by the repeal of the State Tax |
9 | Equalization Board Law. |
10 | (2) The Legislative Reference Bureau has the power and |
11 | duty to recodify regulations of the State Tax Equalization |
12 | Board to effectuate the addition of section 1501 of the act. |
13 | (3) Except as set forth in paragraph (4), any difference |
14 | in language between Chapter 15 of the act and the State Tax |
15 | Equalization Board Law is intended only to conform to the |
16 | style of the addition of a new chapter to the act and is not |
17 | intended to change or affect the legislative intent, judicial |
18 | construction or administrative interpretation and |
19 | implementation of the State Tax Equalization Board Law. |
20 | (4) Paragraph (3) does not apply to the addition of the |
21 | following provisions of the act: |
22 | (i) Section 1501. |
23 | (ii) Section 1502(c). |
24 | (iii) Section 1507(3.1) and (8). | <-- |
25 | (iv) Section 1516.2. |
26 | (iii) Section 1507(8), (10), (11), (12), (13) and | <-- |
27 | (14). |
28 | (iv) Section 1516.1(d). |
29 | (v) Section 1516.2. |
30 | (vi) Section 1521. |
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1 | Section 4. This act shall take effect immediately. |
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