HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 2233, 2268, 2331

PRINTER'S NO.  2340

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1546

Session of

2012

  

  

INTRODUCED BY GORDNER, YAW, RAFFERTY, PILEGGI, YUDICHAK, MENSCH, ARGALL, D. WHITE, EARLL, SCHWANK AND WARD, JUNE 1, 2012

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 28, 2012   

  

  

  

AN ACT

  

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.

 


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

(3)  Notwithstanding any other provision of law, the

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24

Governor may not appoint an individual as a member of the

25

board, if because of the individual's party affiliation under

26

25 Pa.C.S. Pt. IV (relating to voter registration),

27

appointment of the individual would result in more than two

28

members of the board having the same party affiliation as the

29

Governor.

30

(c)  Compensation.--The chairman of the board shall receive

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1

an annual salary of $25,000, and each other member shall receive

2

an annual salary of $24,000.

3

Section 1503.  Chairman.

4

The Governor shall designate one of the members as chairman.

5

The chairman shall be in charge of the administration of the

6

board and the transaction of its routine business and shall

7

execute the orders and policies of the board. The chairman may

8

delegate to a member the authority to act for the chairman.

9

Section 1504.  Quorum.

10

Two members of the board shall constitute a quorum and any

11

action of the board shall require the approval of two members.

12

Section 1505.  Individual powers of members of the board.

13

(a)  Authority.--Any investigation, inquiry or hearing, which

14

the board has power to undertake or hold may be undertaken or

15

held by one or more individual members of the board.

16

(b)  Effect.--

17

(1)  Conduct under subsection (a) shall be deemed to be

18

conduct of the board.

19

(2)  In order to be effective, any determination, ruling

20

or order based upon conduct under subsection (a) must be:

21

(i)  approved and confirmed by a quorum of the board;

22

and

23

(ii)  filed in the office of the board.

24

(3)  Upon compliance with paragraph (2), the

25

determination, ruling or order shall be the determination,

26

ruling or order of the board.

27

(c)  Agents and examiners.--

28

(1)  In any investigation, inquiry or hearing, which may

29

be instituted, the board is authorized to employ special

30

agents or examiners.

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1

(2)  Agents and examiners under this subsection are

2

authorized to administer oaths, examine witnesses and receive

3

evidence, in a locality designated by the board. Evidence

4

under this paragraph shall have the same force and effect as

5

if taken or received by the board or any one or more of its

6

members under subsections (a) and (b).

7

Section 1506.  Administrative assistance.

8

The department shall provide appropriate administrative,

9

legal and technical support as needed by the board in order to

10

accomplish its purpose.

11

Section 1507.  General powers and duties.

12

The board has the following powers and duties:

13

(1)  To determine the market value of taxable real

14

property in each school district and to conduct

15

investigations, require information and have access to public

16

records necessary to make the determination under this

17

paragraph.

18

(2)  To require, in counties of the first class, the

19

board of revision of taxes of such county, or its successor

20

agency, and the county commissioners, or the body or

21

individual exercising equivalent authority, of each county

22

other than a county of the first class, to furnish a monthly

23

list of all conveyances or other transfers of real estate, or

24

any interest in real estate, recorded within the county

25

during the preceding month, stating the value of the Federal

26

tax stamps affixed to the deed for each conveyance, and the

27

assessed valuations for county tax purposes of the real

28

estate.

29

(3)  To certify to the Department of Education and to the

30

board of school directors of each school district:

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1

(i)  by July 1 of each even-numbered odd-numbered 

<--

2

year, a list of all school districts showing the market

3

value of taxable real property and the assessed valuation

4

for county tax purposes; and

5

(ii)  by July 1 of each odd-numbered even-numbered 

<--

6

year, the changes in market values which result from

7

properties going on or off the assessment rolls for

8

taxation purposes.

9

(3.1)  By July 1 of each odd-numbered year, to furnish to

10

the board of school directors of each school district

11

information as pertains to taxable real property in that

12

school district.

13

(4)  To hear and decide appeals of parties that are

14

aggrieved by a finding or conclusion of the board.

15

(5)  To:

16

(i)  investigate the finances and general

17

circumstances of a school district requesting special aid

18

from the Department of Education; and

19

(ii)  advise the Department of Education in making

20

grants of special aid.

21

(6)  To make surveys and investigations of the finances

22

of school districts in the interest of a more equitable

23

distribution of school support.

24

(7)  To subpoena State and local officials and to require

25

from them information as necessary for the proper discharge

26

of its duties.

27

(8)  To discharge functions imposed upon departmental

28

administrative boards by the act of April 9, 1929 (P.L.177,

29

No.175), known as The Administrative Code of 1929.

30

(9)  To establish, annually, by July 1, a common level

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1

ratio of assessed value to market value in each county for

2

the prior calendar year.

3

(10)  To meet as necessary and at least every other month

4

to approve or confirm any determination, ruling or order

5

pursuant to section 1505.

6

(11)  To create in consultation with the County

<--

7

Commissioners Association of Pennsylvania and the Assessors'

8

Association of Pennsylvania an operations manual to be

9

utilized by counties when completing a countywide

10

reassessment or when valuating property.

11

(12)  To create and maintain a centralized and

12

standardized Statewide database for counties to utilize and

13

report to the board all property values and data as required

14

by the board.

15

(13)  To develop and maintain Statewide training programs

16

for all persons involved in the valuation of property within

17

all of the counties of this Commonwealth. These programs

18

shall provide basic and detailed training that shall be

19

completed and passed by any person employed to collect,

20

compile, compare or handle data associated with the valuation

21

of any property for purposes of reassessment valuation within

22

this Commonwealth.

23

(14)  To develop standards on contracting for assessment

24

services in consultation with the County Commissioners

25

Association of Pennsylvania and the Assessors' Association of

26

Pennsylvania, taking into consideration the standards

27

published by the International Association of Assessing

28

Officers. The standards shall:

29

(i)  Require that the methodology used by any person,

30

company or organization to value property in this

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1

Commonwealth be made public.

2

(ii)  State that all data and calculations are the

3

property of the county and this Commonwealth.

4

Section 1508.  Compilation of data.

5

(a)  Requirement.--The board shall accumulate and compile

6

data:

7

(1)  showing the prices at which real property in each

8

school district has been sold and all other available matter

9

relevant to the market value of real property in all school

10

districts; and

11

(2)  concerning new sales and improvements and other data

12

necessary to ensure that the records of the board show the

13

current present market value of real property in each school

14

district as nearly as the same can be determined.

15

(b)  Authority.--In compiling data, the board is authorized

16

to examine all of the following:

17

(1)  Local tax assessment records maintained by local

18

assessors or county and city assessors and boards,

19

commissions or departments charged with the duty of revising

20

assessments.

21

(2)  Public records.

22

Section 1509.  Monthly reports by counties and Commonwealth

23

payments.

24

(a)  Duty.--The following shall apply:

25

(1)  It shall be the duty of the following entities to

26

prepare, certify and electronically deliver to the board on

27

the 15th day of each month a list as prescribed by the board

28

of all conveyances or other transfers of real estate or any

29

interest in real estate, conveyed consistent with any

30

procedures for excluding sales data established in accordance

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1

with section 1516.2(2), recorded within the county during the

2

preceding month:

3

(i)  In counties of the first class, the board of

4

revision of taxes or it its successor agency.

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5

(ii)  In counties of the second class, the office of

6

property assessment or its successor agency.

7

(iii)  In counties of the second class A through

8

eighth class, the board as defined in 53 Pa.C.S. § 8802

9

(relating to definitions).

10

(2)  The list under paragraph (1) shall include the value

11

of the Federal tax stamps affixed to the deed for each

12

conveyance or transfer as set forth on the list and the

13

assessed valuation for county tax purposes of the real

14

estate.

15

(3)  At the end of each month, a list of all the real

16

estate conveyed or transferred within the county during the

17

month, stating the value of Federal tax stamps affixed to the

18

instrument conveying or transferring the real estate or any

19

interest in the real estate, shall be prepared and delivered

20

as follows:

21

(i)  In counties of the first class, the recorder of

22

deeds shall prepare and deliver the list to the board of

23

revision of taxes or its successor agency.

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24

(ii)  In all counties except for a county of the

25

first class, the recorder of deeds shall prepare and

26

deliver the list to the county commissioners or the body

<--

27

or agency exercising equivalent authority.

28

(b)  Payment.--The board shall pay to the board of revision

29

of taxes, or it its successor agency, of counties of the first

<--

30

class and to the county commissioners, or the body or individual

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1

exercising equivalent authority, of every county except a county

2

of the first class the sum of 20¢ for each conveyance or

3

transfer of real estate on each list prepared, certified and

4

delivered to the board for its use under this section.

5

Section 1510.  Annual reports of local assessing officials.

6

By June 1 of each year, the following entities shall file

7

with the board a certificate prescribed by the board and on

8

blanks furnished by the board showing the assessed valuation of

9

all real property in each school district in the county on which

10

the taxes for the then current year are levied:

11

(1)  The board of revision of taxes, or its successor

12

agency, of counties of the first class.

13

(2)  The office of property assessment, or its successor

14

agency, of counties of the second class.

15

(3)  The board as defined in 53 Pa.C.S. § 8802 (relating

16

to definitions).

17

Section 1511.  Market value and percentage of value.

18

From the data compiled under section 1510, the board shall as

19

soon as possible after July 1, determine the market value of

20

real property in each school district and the percentage of the

21

market value as determined by the assessed valuation for county

22

tax purposes.

23

Section 1512.  Certification.

24

As soon as the market value of the real property in each

25

school district in this Commonwealth has been determined and the

26

percentage of the value of the assessed valuation for county tax

27

purposes has been established, the board shall certify the

28

amounts to the Department of Education and for each school

29

district to the board of school directors.

30

Section 1513.  Objections.

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1

(a)  School district.--Any school district aggrieved by any

2

finding or conclusion of the board affecting the amount of any

3

Commonwealth subsidy payable to it may file written objections

4

with the board.

5

(b)  Hearing.--The board shall conduct a hearing at which the

6

board and the school district may submit evidence to show that

7

the findings of the board are incorrect and present arguments to

8

substantiate its contentions.

9

(c)  Findings.--Following review of all the evidence

10

submitted and the arguments of the school district, the board

11

may make modifications and adjustments of its findings and

12

computations as appropriate or dismiss the objections. The board

13

shall prepare written findings of fact based upon all the

14

evidence submitted.

15

(d)  Final valuations.--Any valuations adjusted under

16

subsection (c) shall form the basis of valuations used to

17

determine the amounts of Commonwealth educational subsidies.

18

Section 1514.  Annual adjustments.

19

By July 1 of each even-numbered odd-numbered year, the board

<--

20

shall adjust the market value of real property in each school

21

district to conform with new data accumulated since the market

22

values for the last preceding two years were determined. The

23

board shall determine the percentage of the market value of the

24

assessed valuation of all real property in the school district

25

on which county taxes for the then current year are levied. The

26

market values, percentages and adjustments shall be certified to

27

the Department of Education and each school district with the

28

same right to hearings as provided under section 1513.

29

Section 1515.  Determination and apportionment.

30

(a)  Certification.--As soon as possible each odd-numbered

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1

year and after the final adjustment of values by the board, the

2

board shall certify to the Department of Education the market

3

value of all real property in each school district.

4

(b)  Standard reimbursement fraction.--Each school district's

5

assessed valuation to be used for purposes of computing its

6

standard reimbursement fraction shall be the market value under

7

subsection (a).

8

(c)  Payments.--Every two years the market value under

9

subsection (a) shall be used by the Department of Education to

10

determine the amount of funds needed to meet payments required

11

by law to school districts and vocational schools within the two

12

fiscal years beginning every June 1 and ending every May 31. The

13

Department of Education shall allot the payments to the

14

respective school districts.

15

Section 1516.  Special aid to school districts.

16

Before granting any special aid to a school district, the

17

Department of Education shall submit the request for special aid

18

to the board. The board shall make its recommendations with

19

consideration given to the school district's ability to raise

20

funds by taxation. Before making any recommendation, the board

21

shall carefully investigate and study the financial

22

circumstances of the school district and whether or not it has

23

exhausted its available taxing power not only on real property,

24

but also on all other available property and subjects of

25

taxation, and that collection of taxes is being effectively

26

conducted and enforced. Recommendations shall be transmitted to

27

the Department of Education.

28

Section 1516.1.  Common level ratio.

29

(a)  Establishment.--The board shall annually, prior to July

30

1, establish for each county a common level ratio for the prior

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1

calendar year.

2

(b)  Method.--In arriving at the ratio, the board shall use

3

statistically acceptable techniques, including sales ratio

4

studies. The board's method in arriving at the ratio shall be

5

public information. The ratio shall be certified to the chief

6

assessor of each county and shall be admissible as evidence in

7

any appeal involving real property tax assessments.

8

(c)  Appeal.--Any political subdivision or taxpayer aggrieved

9

by any finding, conclusion, method or technique of the board

10

made under this section may, in writing, file objections to and

11

appeal de novo the ratio determination to Commonwealth Court.

12

After receiving the objections, the board may grant a hearing

13

and may modify or adjust its findings and computations as

14

appropriate.

15

(d)  Review.--If the common level ratio increases or

16

decreases by ten percent or more, the board shall immediately

17

review its findings prior to certification of the ratio.

18

Section 1516.2.  Publication of information by board.

19

The board shall publish the following information that shall

20

be updated annually:

21

(1)  The statistical methods used to calculate the common

22

level ratio and the State Tax Equalization Board market

23

ratio.

24

(2)  Procedures for excluding sales data and how the

25

procedures compare with practices of the International

26

Association of Assessing Officers.

27

(3)  Procedures to ensure that dissimilar properties are

28

not treated as a single group.

29

(4)  Standards to be used for sales sample size and

30

procedures to be used when sales samples are not adequate.

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1

If a municipality contracts for services relating to an

2

assessment, the data collected by the contractor must be

3

transmitted to the municipality within 60 days of its collection

4

or development.

5

Section 1517.  Saving clause.

6

Nothing in this chapter shall be construed to change or

7

affect the validity of the assessed valuation of any real

8

property for the purpose of levying taxes by any political

9

subdivision.

10

Section 1518.  (Reserved).

11

Section 1519.  Repeal.

12

All acts and parts of acts are repealed insofar as they are

13

inconsistent with this chapter.

14

Section 1520.  (Reserved).

15

Section 1521.  Funding contingency.

<--

16

The board's authority to carry out the duties set forth in

17

section 1507(11), (12), (13) and (14) is contingent upon receipt

18

of an appropriation in an amount sufficient to complete these

19

duties.

20

Section 1522.  Limitation on countywide reassessment.

<--

21

(a)  Prohibition.--The following shall apply:

22

(1)  No local taxing authority shall undertake, on or

23

after the effective date of this section, the process of a

24

court-ordered countywide reassessment of real property for

25

purposes of levying property taxes.

26

(2)  Notwithstanding paragraph (1), any county currently

27

conducting a court-ordered countywide reassessment as of the

28

effective date of this section may, at the discretion of the

29

county, continue the process.

30

(b)  End of prohibition.--The prohibition under subsection

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1

(a)(1) shall remain in effect until the board has implemented

2

and completed the requirements under section 1507, or until

3

December 31, 2014, whichever occurs first.

4

(c)  Definition.--As used in this section, the term "local

5

taxing authority" shall mean any political subdivision

6

authorized to impose real property taxes.

7

Section 2.  Repeals are as follows:

8

(1)  The General Assembly declares that the repeal under

9

paragraph (2) is necessary to effectuate the addition of

10

Chapter 15 of the act.

11

(2)  The act of June 27, 1947 (P.L.1046, No.447),

12

referred to as the State Tax Equalization Board Law, is

13

repealed.

14

(3)  All acts and parts of acts are repealed insofar as

15

they are inconsistent with this act.

16

Section 3.  The addition of Chapter 15 of the act is a

17

continuation of the act of June 27, 1947 (P.L.1046, No.447),

18

referred to as the State Tax Equalization Board Law. The

19

following apply:

20

(1)  Except as otherwise provided in Chapter 15 of the

21

act, all activities initiated under the State Tax

22

Equalization Board Law shall continue and remain in full

23

force and effect and may be completed under Chapter 15 of the

24

act. Resolutions, orders, regulations, rules , decisions and

25

sequence of methods used for arriving at market value for

26

odd-numbered and even-numbered years which were made under

27

the State Tax Equalization Board Law and which are in effect

28

on the effective date of this section shall remain in full

29

force and effect until revoked, vacated or modified under

30

Chapter 15 of the act. Contracts, obligations and agreements

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1

entered into under the State Tax Equalization Board Law are

2

not affected nor impaired by the repeal of the State Tax

3

Equalization Board Law.

4

(2)  The Legislative Reference Bureau has the power and

5

duty to recodify regulations of the State Tax Equalization

6

Board to effectuate the addition of section 1501 of the act.

7

(3)  Except as set forth in paragraph (4), any difference

8

in language between Chapter 15 of the act and the State Tax

9

Equalization Board Law is intended only to conform to the

10

style of the addition of a new chapter to the act and is not

11

intended to change or affect the legislative intent, judicial

12

construction or administrative interpretation and

13

implementation of the State Tax Equalization Board Law.

14

(4)  Paragraph (3) does not apply to the addition of the

15

following provisions of the act:

16

(i)  Section 1501.

17

(ii)  Section 1502(c).

18

(iii)  Section 1507(3.1) and (8).

<--

19

(iv)  Section 1516.2.

20

(iii)  Section 1507(8), (10), (11), (12), (13) and

<--

21

(14).

22

(iv)  Section 1516.1(d).

23

(v)  Section 1516.2.

24

(vi)  Section 1521.

25

(vii)  Section 1522.

<--

26

Section 4.  This act shall take effect immediately.

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