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PRINTER'S NO. 2941
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2036
Session of
2018
INTRODUCED BY STURLA, DEAN, THOMAS, DERMODY, SCHLOSSBERG,
D. MILLER, BRADFORD, FRANKEL AND D. COSTA, JANUARY 25, 2018
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
JANUARY 25, 2018
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in consolidated county assessment,
further providing for subjects of local taxation and for
valuation of property.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8811(a) and (b)(5) of Title 53 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 8811. Subjects of local taxation.
(a) Subjects of taxation enumerated.--Except as provided in
subsection (b), all subjects and property made taxable by the
laws of this Commonwealth for county, city, borough, town,
township and school district purposes shall, as provided in this
chapter, be valued and assessed at the annual rates, including
all:
(1) Real estate, namely:
(i) houses;
(ii) house trailers and mobile homes permanently
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attached to land or connected with water, gas, electric
or sewage facilities;
(iii) buildings permanently attached to land or
connected with water, gas, electric or sewage facilities;
(iv) lands, lots of ground and ground rents, trailer
parks and parking lots;
(v) mills and manufactories of all kinds, furnaces,
forges, bloomeries, distilleries, sugar houses, malt
houses, breweries, tan yards, fisheries, ferries and
wharves;
(vi) all office buildings;
(vii) that portion of a steel, lead, aluminum or
like melting and continuous casting structure which
encloses or provides shelter or protection from the
elements for the various machinery, tools, appliances,
equipment, materials or products involved in the mill,
mine, manufactory or industrial process; and
(viii) telecommunication towers that have become
affixed to land.
(1.1) Rights held pursuant to a lease or other agreement
subject to the act of July 20, 1979 (P.L.183, No.60), known
as the Oil and Gas Lease Act, to extract, remove or recover
gas, including natural gas, or oil shall be subject to
taxation as real estate for all county, city, borough, town,
township and school district purposes. The rights shall be
assessed and taxed separately from the surface property
assessment, in the name of the holder of such rights, and
valued in accordance with section 8842(d) (relating to
valuation of property). The following apply:
(i) For the first tax year after the effective date
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of this paragraph that the chief assessor has implemented
the provisions of this paragraph and has rated and valued
leases under this paragraph and placed the value on the
county's permanent set of records, each political
subdivision for which the total amount of taxes levied
for that year against real properties contained in the
duplicate for the preceding year exceeds 110% of the
total amount it levied on those properties in the
preceding year shall, for that first year, reduce its tax
rate, if necessary, for the purpose of having the total
amount of taxes levied for that year against the real
properties contained in the duplicate for the preceding
year, equal the total amount it levied on those
properties the preceding year, notwithstanding the
increased valuations of the properties under the revised
assessment. The tax rate shall be fixed at a figure which
will accomplish this purpose.
(ii) After establishing a tax rate under
subparagraph (i), a political subdivision may increase
its tax rate by a separate and specific vote.
(iii) For the purpose of determining the total
amount of taxes to be levied in the first year under
subparagraphs (i) and (ii), the amount to be levied on
newly constructed buildings or structures, or on
increased valuations based on new improvements made to
existing houses, need not be considered.
(iv) The provisions of this paragraph are not
intended, nor shall they be construed, to affect any
other determination, including, but not limited to, the
determination of royalty due under mineral leases.
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Notwithstanding any other provision of law, any tax
imposed by this chapter shall not reduce any royalty
payments due under mineral leases, and the producer under
a mineral lease may not recover any portion of the tax
paid from the royalty owner through other means of
deduction or reallocation, notwithstanding any provision
in the lease, contract or agreement.
(2) All other things now taxable by the laws of this
Commonwealth for taxing districts.
(b) Exceptions.--The following are not subject to tax:
* * *
(5) No wind turbine generators or related wind energy
appliances and equipment, including towers and tower
foundations, shall be considered or included as part of the
real property in determining the fair market value and
assessment of real property used for the purpose of wind
energy generation. Real property used for the purpose of wind
energy generation shall be valued under section 8842(b)(2)
[(relating to valuation of property)].
* * *
Section 2. Section 8842 of Title 53 is amended by adding a
subsection to read:
§ 8842. Valuation of property.
* * *
(d) Gas and oil leases.--The valuation of rights held
pursuant to a lease or other agreement subject to the act of
July 20, 1979 (P.L.183, No.60), known as the Oil and Gas Lease
Act, to extract, remove or recover gas, including natural gas,
or oil shall be developed by the county assessor utilizing the
income approach to value based upon the discounted value of the
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rights, supplemented by the sales comparison data approach as
deemed necessary by the county assessor. The lessee or operator,
or lessor on behalf of the lessee or operator, shall annually,
no later than July 1, provide the county assessor with such
nonproprietary lease and lease income information as the
assessor determines is reasonably needed to determine value. The
board may change the assessed valuation of the rights in the
event information becomes available that would significantly
affect the valuation, including, but not limited to,
commencement of production on or near the property and the
depletion of the hydrocarbon gas subject to the lease and
related production.
Section 3. This act shall take effect in 60 days.
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