| S1301B2179A12589 VDL:DM 06/25/12 #90 A12589 |
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| AMENDMENTS TO SENATE BILL NO. 1301 |
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| Printer's No. 2179 |
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1 | Amend Bill, page 1, line 3, by inserting after "property," |
2 | providing for cities and counties of the first class, |
3 | Amend Bill, page 1, line 4, by striking out the semicolon |
4 | after "procedure" |
5 | Amend Bill, page 1, lines 8 through 10, by striking out all |
6 | of said lines and inserting |
7 | Section 1. The heading of Chapter 85 of Title 53 of the |
8 | Pennsylvania Consolidated Statutes is amended to read: |
9 | CHAPTER 85 |
10 | ASSESSMENTS OF PERSONS AND PROPERTY |
11 | Subchapter |
12 | A. through [D] C. (Reserved) |
13 | D. Cities and Counties of the First Class |
14 | E. Real Estate Tax Deferral |
15 | F. Homestead Property Exclusion |
16 | SUBCHAPTERS A through [D] C |
17 | (Reserved) |
18 | Section 1.1. Chapter 85 of Title 53 is amended by adding a |
19 | subchapter to read: |
20 | SUBCHAPTER D |
21 | CITIES AND COUNTIES OF THE FIRST CLASS |
22 | Sec. |
23 | 8561. Scope of subchapter. |
24 | 8562. Definitions. |
25 | 8563. (Reserved). |
26 | 8564. (Reserved). |
27 | 8565. Assessments and appeals for certain tax years. |
28 | § 8561. Scope of subchapter. |
29 | This subchapter relates to assessments in cities and counties |
30 | of the first class. |
31 | § 8562. Definitions. |
32 | The following words and phrases when used in this subchapter |
33 | shall have the meanings given to them in this section unless the |
34 | context clearly indicates otherwise: |
35 | "Act 1939-404." The act of June 27, 1939 (P.L.1199, No.404), |
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1 | entitled "An act relating to the assessment of real and personal |
2 | property and other subjects of taxation in counties of the first |
3 | class; providing for the appointment of members of the board of |
4 | revision of taxes by the judges of the courts of common pleas; |
5 | providing for the appointment, by the board, of personal |
6 | property assessors, real estate assessors and assistant real |
7 | estate assessors, clerks and other employes; fixing the salaries |
8 | of members of the board, assessors and assistant assessors, and |
9 | providing for the payment of salaries and expenses from the |
10 | county treasury; prescribing the powers and duties of the board |
11 | and of the assessors, the time and manner of making assessments, |
12 | of the revision and notice of assessments and of appeals |
13 | therefrom; prescribing the records of assessments; and repealing |
14 | existing laws." |
15 | "Assessment office." The office of property assessment in a |
16 | city. |
17 | "Board." The board of revision of taxes or a successor body |
18 | authorized by a city to determine assessment appeals in a city. |
19 | "City." A city of the first class. |
20 | "Common level ratio." The ratio of assessed value to market |
21 | value as determined by the State Tax Equalization Board under |
22 | the act of June 27, 1947 (P.L.1046, No.447), referred to as the |
23 | State Tax Equalization Board Law. |
24 | "County." A county of the first class. |
25 | "Established predetermined ratio." The ratio of assessed |
26 | value to market value established under Act 1939-404 and |
27 | uniformly applied in determining assessed value in any year. |
28 | "Governing body." The governing body of a city. |
29 | "School district." A school district of the first class. |
30 | § 8563. (Reserved). |
31 | § 8564. (Reserved). |
32 | § 8565. Assessments and appeals for certain tax years. |
33 | (a) Legislative findings.--The General Assembly finds and |
34 | declares as follows: |
35 | (1) Real estate tax assessment in a city has become |
36 | increasingly at variance with principles of uniformity and |
37 | sound assessment. |
38 | (2) The deficiencies under paragraph (1) have been |
39 | determined to be remedied by a citywide reassessment, |
40 | sometimes referred to as the "actual value initiative." |
41 | (3) The reassessment of all properties located in a city |
42 | is likely to cause substantial shifts in tax liabilities |
43 | among various neighborhoods and groups of taxpayers. These |
44 | shifts are likely to increase substantially the tax burdens |
45 | on residential properties, particularly those properties with |
46 | low to medium values. |
47 | (4) As part of a reassessment, the governing body must |
48 | make a major revision to the applicable tax rates in order to |
49 | maintain tax revenues and fund any required tax increases. |
50 | The governing body must take into account enactment of a |
51 | homestead exclusion and perhaps other measures in order to |
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1 | alleviate an increased tax burden on lower value residential |
2 | properties. |
3 | (5) The governing body cannot responsibly determine the |
4 | applicable tax rates without knowing the value of the tax |
5 | base to which the rates apply. Currently, a city's budget, |
6 | including tax revenues, must be enacted by each June 30; but |
7 | tax assessments are not finalized until the following |
8 | September. |
9 | (6) Implementation by a city of an actual value |
10 | initiative will be helped by requiring that assessed values |
11 | be determined prior to adopting the city's budget and by the |
12 | applicable assessment officials completing the task of |
13 | determining the tax base in the city. |
14 | (7) The common level ratio for a city applicable to tax |
15 | year 2012, certified by the State Tax Equalization Board and |
16 | published at 42 Pa.B. 2152 (April 14, 2012), has been |
17 | disputed and may be subject to further dispute. The common |
18 | level ratio for tax year 2013 may have similar uncertainties. |
19 | The ratios for both years are determined by a State Tax |
20 | Equalization Board assessment tool new to the review of |
21 | properties in a city. |
22 | (8) The common level ratio for a city applicable to tax |
23 | year 2011, based on 2009 data and published at 40 Pa.B. 4069 |
24 | (July 17, 2010), has not been disputed and is the same as the |
25 | applicable established predetermined ratio. |
26 | (9) Special provisions are necessary in order to address |
27 | the findings set forth in this subsection. |
28 | (b) Certification of values.--Notwithstanding any other |
29 | provision of law: |
30 | (1) For tax year 2013, the assessment office shall |
31 | certify assessed values at the assessed values certified for |
32 | tax year 2011, adjusted for subsequent improvements, |
33 | demolition and destruction. The assessed values certified for |
34 | tax year 2013 under this paragraph shall apply to all taxes |
35 | on, or measured by, assessed values levied by a city or a |
36 | school district for tax year 2013 notwithstanding any |
37 | contrary enactment of a city or a school district or any |
38 | contrary certification by a city, city agency or school |
39 | district. |
40 | (2) For tax years after tax year 2013, the assessment |
41 | office shall certify market values at actual market value. In |
42 | arriving at actual market value, the price at which any |
43 | property may actually have been sold shall be considered but |
44 | shall not be controlling. In arriving at the actual market |
45 | value: |
46 | (i) All three of the following valuation methods |
47 | shall be considered in conjunction with one another: |
48 | (A) Reproduction or replacement cost, as |
49 | applicable, minus: |
50 | (I) depreciation; and |
51 | (II) all forms of obsolescence. |
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1 | (B) Comparable sales. |
2 | (C) Income. |
3 | (ii) The valuation process may employ systems, |
4 | methodologies and technologies that meet nationally |
5 | recognized assessment standards. |
6 | (c) Timing of certification.--Notwithstanding any other |
7 | provision of law, for tax years after tax year 2013, the |
8 | assessment office shall certify assessed values by March 31 of |
9 | the preceding year. |
10 | (d) Application of established predetermined ratio.-- |
11 | Notwithstanding any other provision of law, in any assessment |
12 | appeal under Act 1939-404 for tax year 2013, the board and any |
13 | applicable court of competent jurisdiction shall apply the |
14 | established predetermined ratio applicable to a city for tax |
15 | year 2011. |
16 | (e) Conflicts.--If there is a conflict between a provision |
17 | of Act 1939-404 and a provision of this section, the provision |
18 | of this section shall apply. |
19 | Section 1.2. The definition of "board" in section 8582 of |
20 | Title 53 is amended to read: |
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