AN ACT

 

1Amending Title 53 (Municipalities Generally) of the Pennsylvania
2Consolidated Statutes, further providing for subjects of
3local taxation and for valuation of property.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1.  Section 8811 of Title 53 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 8811.  Subjects of local taxation.

9(a)  Subjects of taxation enumerated.--Except as provided in
10subsection (b), all subjects and property made taxable by the
11laws of this Commonwealth for county, city, borough, town,
12township and school district purposes shall, as provided in this
13chapter, be valued and assessed at the annual rates, including
14all:

15(1)  Real estate, namely:

16(i)  houses;

17(ii)  house trailers and mobile homes permanently
18attached to land or connected with water, gas, electric

1or sewage facilities;

2(iii)  buildings permanently attached to land or
3connected with water, gas, electric or sewage facilities;

4(iv)  lands, lots of ground and ground rents, trailer
5parks and parking lots;

6(v)  mills and manufactories of all kinds, furnaces,
7forges, bloomeries, distilleries, sugar houses, malt
8houses, breweries, tan yards, fisheries, ferries and
9wharves;

10(vi)  all office buildings;

11(vii)  that portion of a steel, lead, aluminum or
12like melting and continuous casting structure which
13encloses or provides shelter or protection from the
14elements for the various machinery, tools, appliances,
15equipment, materials or products involved in the mill,
16mine, manufactory or industrial process; and

17(viii)  telecommunication towers that have become
18affixed to land.

19(1.1)  Rights held pursuant to a lease or other agreement
20subject to the act of July 20, 1979 (P.L.183, No.60),
21entitled "An act regulating the terms and conditions of
22certain leases regarding natural gas and oil," to extract,
23remove or recover gas, including natural gas, or oil shall be
24subject to taxation as real estate for all county, city,
25borough, town, township and school district purposes. The
26rights shall be assessed and taxed separately from the
27surface property assessment, in the name of the holder of
28such rights, and valued in accordance with section 8842(d)
29(relating to valuation of property). The following apply:

30(i)  For the first tax year after the effective date

1of this paragraph that the chief assessor has implemented
2the provisions of this paragraph and has rated and valued
3leases under this paragraph and placed the value on the
4county's permanent set of records, each political
5subdivision for which the total amount of taxes levied
6for that year against real properties contained in the
7duplicate for the preceding year exceeds 110% of the
8total amount it levied on those properties in the
9preceding year, shall for that first year, reduce its tax
10rate, if necessary, for the purpose of having the total
11amount of taxes levied for that year against the real
12properties contained in the duplicate for the preceding
13year, equal the total amount it levied on those
14properties the preceding year, notwithstanding the
15increased valuations of the properties under the revised
16assessment. The tax rate shall be fixed at a figure which
17will accomplish this purpose.

18(ii)  After establishing a tax rate under
19subparagraph (i), a political subdivision may increase
20its tax rate by a separate and specific vote.

21(iii)  For the purpose of determining the total
22amount of taxes to be levied in the first year under
23subparagraphs (i) and (ii), the amount to be levied on
24newly constructed buildings or structures, or on
25increased valuations based on new improvements made to
26existing houses, need not be considered.

27(iv)  The provisions of this paragraph are not 
28intended, nor shall they be construed, to affect any 
29other determination, including, but not limited to, the 
30determination of royalty due under mineral leases. 

1Notwithstanding any other provision of law, any tax 
2imposed by this chapter shall not reduce any royalty 
3payments due under mineral leases, and the producer under 
4a mineral lease may not recover any portion of the tax 
5paid from the royalty owner through other means of 
6deduction or reallocation, notwithstanding any provision 
7in the lease, contract or agreement.

8(2)  All other things now taxable by the laws of this
9Commonwealth for taxing districts.

10(b)  Exceptions.--The following are not subject to tax:

11(1)  Machinery, tools, appliances and other equipment
12contained in any mill, mine, manufactory or industrial
13establishment shall not be considered or included as a part
14of the real estate in determining the value for taxation of
15the mill, mine, manufactory or industrial establishment.

16(2)  Silos used predominantly for processing or storage
17of animal feed incidental to operation of the farm on which
18it is located, freestanding detachable grain bins or corn
19cribs used exclusively for processing or storage of animal
20feed incidental to the operation of the farm on which it is
21located and inground and aboveground structures and
22containments used predominantly for processing and storage of
23animal waste and composting facilities incidental to
24operation of the farm on which the structures and
25containments are located shall not be considered or included
26as part of the real estate.

27(3)  No amusement park rides shall be assessed or taxed
28as real estate regardless of whether they have become affixed
29to the real estate.

30(4)  No sign or sign structure primarily used to support

1or display a sign shall be assessed as real property by a
2county for purposes of the taxation of real property by the
3county or a political subdivision located within the county
4or by a municipality located within the county authorized to
5assess real property for purposes of taxation, regardless of
6whether the sign or sign structure has become affixed to the
7real estate.

8(5)  No wind turbine generators or related wind energy
9appliances and equipment, including towers and tower
10foundations, shall be considered or included as part of the
11real property in determining the fair market value and
12assessment of real property used for the purpose of wind
13energy generation. Real property used for the purpose of wind
14energy generation shall be valued under section 8842(b)(2)
15[(relating to valuation of property)].

16Section 2.  Section 8842 of Title 53 is amended by adding a
17subsection to read:

18§ 8842.  Valuation of property.

19* * *

20(d)  Gas and oil leases.--The valuation of rights held 
21pursuant to a lease or other agreement subject to the act of 
22July 20, 1979 (P.L.183, No.60), entitled "An act regulating the 
23terms and conditions of certain leases regarding natural gas and 
24oil," to extract, remove or recover gas, including natural gas, 
25or oil shall be developed by the county assessor utilizing the 
26income approach to value based upon the discounted value of the 
27rights, supplemented by the sales comparison data approach as 
28deemed necessary by the county assessor. The lessee or operator, 
29or lessor on behalf of the lessee or operator, shall annually, 
30no later than July 1, provide the county assessor with such 

1nonproprietary lease and lease income information as the 
2assessor determines is reasonably needed to determine value. The 
3board may change the assessed valuation of the rights in the 
4event information becomes available that would significantly 
5affect the valuation, including, but not limited to, 
6commencement of production on or near the property and the 
7depletion of the hydrocarbon gas subject to the lease and 
8related production.

9Section 3.  This act shall take effect in 60 days.