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

1attached to land or connected with water, gas, electric
2or sewage facilities;

3(iii)  buildings permanently attached to land or
4connected with water, gas, electric or sewage facilities;

5(iv)  lands, lots of ground and ground rents, trailer
6parks and parking lots;

7(v)  mills and manufactories of all kinds, furnaces,
8forges, bloomeries, distilleries, sugar houses, malt
9houses, breweries, tan yards, fisheries, ferries and
10wharves;

11(vi)  all office buildings;

12(vii)  that portion of a steel, lead, aluminum or
13like melting and continuous casting structure which
14encloses or provides shelter or protection from the
15elements for the various machinery, tools, appliances,
16equipment, materials or products involved in the mill,
17mine, manufactory or industrial process; and

18(viii)  telecommunication towers that have become
19affixed to land.

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

1(i)  For the first tax year after the effective date
2of this paragraph that the chief assessor has implemented
3the provisions of this paragraph and has rated and valued
4leases under this paragraph and placed the value on the
5county's permanent set of records, each political
6subdivision for which the total amount of taxes levied
7for that year against real properties contained in the
8duplicate for the preceding year exceeds 110% of the
9total amount it levied on those properties in the
10preceding year, shall for that first year, reduce its tax
11rate, if necessary, for the purpose of having the total
12amount of taxes levied for that year against the real
13properties contained in the duplicate for the preceding
14year, equal the total amount it levied on those
15properties the preceding year, notwithstanding the
16increased valuations of the properties under the revised
17assessment. The tax rate shall be fixed at a figure which
18will accomplish this purpose.

19(ii)  After establishing a tax rate under
20subparagraph (i), a political subdivision may increase
21its tax rate by a separate and specific vote.

22(iii)  For the purpose of determining the total
23amount of taxes to be levied in the first year under
24subparagraphs (i) and (ii), the amount to be levied on
25newly constructed buildings or structures, or on
26increased valuations based on new improvements made to
27existing houses, need not be considered.

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

1determination of royalty due under mineral leases. 
2Notwithstanding any other provision of law, any tax 
3imposed by this chapter shall not reduce any royalty 
4payments due under mineral leases, and the producer under 
5a mineral lease may not recover any portion of the tax 
6paid from the royalty owner through other means of 
7deduction or reallocation, notwithstanding any provision 
8in the lease, contract or agreement.

9(2)  All other things now taxable by the laws of this
10Commonwealth for taxing districts.

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

12(1)  Machinery, tools, appliances and other equipment
13contained in any mill, mine, manufactory or industrial
14establishment shall not be considered or included as a part
15of the real estate in determining the value for taxation of
16the mill, mine, manufactory or industrial establishment.

17(2)  Silos used predominantly for processing or storage
18of animal feed incidental to operation of the farm on which
19it is located, freestanding detachable grain bins or corn
20cribs used exclusively for processing or storage of animal
21feed incidental to the operation of the farm on which it is
22located and inground and aboveground structures and
23containments used predominantly for processing and storage of
24animal waste and composting facilities incidental to
25operation of the farm on which the structures and
26containments are located shall not be considered or included
27as part of the real estate.

28(3)  No amusement park rides shall be assessed or taxed
29as real estate regardless of whether they have become affixed
30to the real estate.

1(4)  No sign or sign structure primarily used to support
2or display a sign shall be assessed as real property by a
3county for purposes of the taxation of real property by the
4county or a political subdivision located within the county
5or by a municipality located within the county authorized to
6assess real property for purposes of taxation, regardless of
7whether the sign or sign structure has become affixed to the
8real estate.

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

17Section 2.  Section 8842 of Title 53 is amended by adding a
18subsection to read:

19§ 8842.  Valuation of property.

20* * *

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

1no later than July 1, provide the county assessor with such 
2nonproprietary lease and lease income information as the 
3assessor determines is reasonably needed to determine value. The 
4board may change the assessed valuation of the rights in the 
5event information becomes available that would significantly 
6affect the valuation, including, but not limited to, 
7commencement of production on or near the property and the 
8depletion of the hydrocarbon gas subject to the lease and 
9related production.

10Section 3.  This act shall take effect in 60 days.