PRINTER'S NO. 611
No. 585 Session of 1999
INTRODUCED BY VAN HORNE, PRESTON, S. MILLER, PESCI, WOJNAROSKI,
M. COHEN AND TRELLO, FEBRUARY 16, 1999
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 16, 1999
AN ACT
1 Amending the act of June 23, 1931 (P.L.932, No.317), entitled
2 "An act relating to cities of the third class; and amending,
3 revising, and consolidating the law relating thereto,"
4 further defining "common level ratio"; further providing for
5 board determinations in assessment appeals; providing for
6 assessment errors and refunds; and further providing for
7 court determinations in assessment appeals.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The definition of "common level ratio" in section
11 2503.1 of the act of June 23, 1931 (P.L.932, No.317), known as
12 The Third Class City Code, reenacted and amended June 28, 1951
13 (P.L.662, No.164) and added December 13, 1982 (P.L.1192,
14 No.273), is amended to read:
15 Section 2503.1. Definitions.--The following words and
16 phrases when used in this act shall have, unless the context
17 clearly indicates otherwise, the meanings given to them in this
18 section:
19 * * *
20 "Common level ratio," the ratio of assessed value to current
1 market value used generally in the county or applicable city as
2 last determined by the State Tax Equalization Board pursuant to
3 the act of June 27, 1947 (P.L.1046, No.447), referred to as the
4 State Tax Equalization Board Law.
5 * * *
6 Section 2. Section 2504(c) of the act, amended December 13,
7 1982 (P.L.1192, No.273), is amended and the section is amended
8 by adding subsections to read:
9 Section 2504. Assessment of Property; Duties of Assessor.--*
10 * *
11 (c) The board shall assess real property at a value based
12 upon an established predetermined ratio which [may not exceed]
13 shall be one hundred per centum of actual value. Such ratio
14 shall be established and determined by the city council after
15 proper notice has been given.
16 * * *
17 (f) If a third class city changes its assessment base by
18 applying a change in the established predetermined ratio, the
19 board shall apply the percentage change between the existing
20 established predetermined ratio and the new established
21 predetermined ratio to the county's common level ratio to
22 establish the certified revised common level ratio for the year
23 in which the assessment was revised.
24 (g) If a third class city, which assesses property
25 independently from the county in which it is located, performs a
26 citywide revision of assessments by revaluing the properties and
27 applying the city established predetermined ratio, the city
28 shall utilize its predetermined ratio instead of the city common
29 level ratio for the year in which the assessment was revised and
30 until such time as the common level ratio, as determined by the
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1 board, reflects the revaluing of properties from the revision of
2 assessments.
3 Section 3. Section 2520 of the act, amended December 13,
4 1982 (P.L.1192, No.273), is amended to read:
5 Section 2520. Custody of Assessment Books; Completion of
6 Work of Board.--(a) The board of revision of taxes and appeals
7 shall procure and have the custody and control of all books
8 relating to assessment of city taxes, and keep them arranged
9 according to wards and dates, and shall furnish the city
10 assessor the necessary books for making the assessment, which,
11 on the completion of such assessment, shall be returned to such
12 board of revision of taxes and appeals. The board shall complete
13 its labors, and the hearing and determination of all appeals, on
14 or before the first day of December of each year, or as soon
15 thereafter as practicable, after which the assessment shall be
16 copied, by wards, into a tax duplicate or duplicates for the use
17 of the city. The assessment, so corrected and copied, shall be
18 and remain a lawful assessment for the purpose of city taxation
19 until altered as provided in this article. The board shall give
20 notice in writing within five days after its disposition of each
21 appeal, advising the taxable of its decision.
22 (b) In any appeal of an assessment the board shall make the
23 following determinations:
24 (1) The [current] market value [for the tax year in
25 question] as of the date such appeal was filed with the board.
26 (2) The common level ratio published by the State Tax
27 Equalization Board on or before the first day of July of the
28 year prior to the tax year on appeal before the board.
29 (c) The board, after determining the [current] market value
30 of the property for the tax year in question, shall then apply
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1 the established predetermined ratio to such value unless the
2 common level ratio varies by more than fifteen per centum from
3 the established predetermined ratio, in which case the board
4 shall apply the common level ratio to the [current] market value
5 of the property for the tax year in question. As an example, in
6 the case of an established predetermined ratio of thirty per
7 centum, the following calculations would be made to determine
8 the permissible ratio variance:
9 30% (PDR) x 15% = 4.5%
10 30% (PDR) + 4.5% = 34.5%
11 30% (PDR) - 4.5% = 25.5%
12 (c.1) If a third class city changes its assessment base by
13 applying a change in the established predetermined ratio, the
14 board shall apply the percentage change between the existing
15 established predetermined ratio and the new established
16 predetermined ratio to the county's common level ratio to
17 establish the certified revised common level ratio for the year
18 in which the assessment was revised.
19 (c.2) If a third class city, which assesses property
20 independently from the county in which it is located, performs a
21 citywide revision of assessments by revaluing the properties and
22 applying the city established predetermined ratio, the board
23 shall utilize the city's established predetermined ratio instead
24 of the city common level ratio for the year in which the
25 assessment was revised and until such time as the common level
26 ratio, as determined by the board, reflects the revaluing of
27 properties from the revision of assessments.
28 (d) Nothing herein shall prevent any appellant from
29 appealing any base year valuation without reference to ratio.
30 Section 4. The act is amended by adding a section to read:
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1 Section 2520.1. Error in Assessment; Refunds.--(a) If,
2 through mathematical or clerical error, an assessment is greater
3 than it should have been and taxes are paid in accordance with
4 the incorrect assessment, the board of revision of taxes and
5 appeals shall inform the appropriate individuals and shall make
6 a refund to the taxpayer for whichever of the following is less:
7 (1) The overage of taxes paid during the period of time the
8 error existed.
9 (2) The overage of taxes paid during the six years preceding
10 the date the board discovers the error.
11 (b) A taxpayer may petition the board to determine if there
12 has been an error in the assessment of the taxpayer's property.
13 (c) Reassessment which results from a judgment of the board
14 that is based on the method of assessment utilized does not
15 constitute an error under this section.
16 Section 5. Section 2521 of the act, amended December 13,
17 1982 (P.L.1192, No.273), is amended to read:
18 Section 2521. Appeals from Decisions of Board; Costs.--(a)
19 Any owner of taxable property who may feel aggrieved by the
20 decision of the board of revision of taxes and appeals as to the
21 assessment or valuation of his taxable property may appeal from
22 the decision of the board of revision of taxes and appeals to
23 the court of common pleas of the county within which such
24 property is situated, and, for that purpose, may present to said
25 court, or file in the prothonotary's office, within sixty days
26 after mailing notice to him that the board of revision of taxes
27 and appeals have held the appeals provided for by law and acted
28 on the said assessments and valuations, a petition signed by
29 him, his agent, or attorney, setting forth the facts of the
30 case. The court shall thereupon, after notice to the said board
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1 of revision of taxes and appeals, hear the said appeal and the
2 proofs in the case, and make such orders and decrees touching
3 the matter complained of as to the judges of said court may seem
4 just and equitable, having due regard to the valuation and
5 assessment made of other property in such city. The costs of the
6 appeal and hearing shall be apportioned or paid as the court may
7 direct. The said appeals shall not, however, prevent the
8 collection of the taxes complained of, but in case the same
9 shall be reduced, then the excess shall be returned to the
10 person or persons who shall have paid the same.
11 (b) In any appeal of an assessment the court shall make the
12 following determinations:
13 (1) The [current] market value [for the tax year in
14 question] as of the date such appeal was filed before a city
15 council acting in its capacity as board of revision of taxes and
16 appeals. In the event subsequent years have been made a part of
17 an appeal, the court shall determine the respective market value
18 for each such year.
19 (2) The common level ratio which was applicable in an appeal
20 to a city council acting in its capacity as board of revision of
21 taxes and appeals. In the event subsequent years have been made
22 a part of an appeal to the court, the court shall determine the
23 respective common level ratio for each such year published by
24 the State Tax Equalization Board on or before the year prior to
25 the tax year being appealed.
26 (c) The court, after determining the [current] market value
27 of the property [for the tax year in question] under subsection
28 (b)(1), shall then apply the established predetermined ratio to
29 such value unless the corresponding common level ratio
30 determined under subsection (b)(2) varies by more than fifteen
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1 per centum from the established predetermined ratio, in which
2 case the court shall apply the respective common level ratio to
3 the [current] corresponding market value of the property [for
4 the tax year in question]. As an example, in the case of an
5 established predetermined ratio of thirty per centum, the
6 following calculations would be made to determine the
7 permissible ratio variance:
8 30% (PDR) x 15% = 4.5%
9 30% (PDR) + 4.5% = 34.5%
10 30% (PDR) - 4.5% = 25.5%
11 (c.1) If a third class city changes its assessment base by
12 applying a change in the established predetermined ratio, the
13 court shall apply the percentage change between the existing
14 established predetermined ratio and the new established
15 predetermined ratio to the county's common level ratio to
16 establish the certified revised common level ratio for the year
17 in which the assessment was revised.
18 (c.2) If a third class city, which assesses property
19 independently from the county in which it is located, performs a
20 citywide revision of assessments by revaluing the properties and
21 applying the city established predetermined ratio, the court
22 shall utilize the city's predetermined ratio instead of the city
23 common level ratio for the year in which the assessment was
24 revised and until such time as the common level ratio, as
25 determined by the board, reflects the revaluing of properties
26 from the revision of assessment.
27 (d) Nothing herein shall prevent any appellant from
28 appealing any base year valuation without reference to ratio.
29 Section 6. This act shall take effect January 1, 2000.
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