PRINTER'S NO. 694
No. 621 Session of 2005
INTRODUCED BY GODSHALL, BUNT, CRAHALLA AND KILLION,
FEBRUARY 16, 2005
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 16, 2005
AN ACT
1 Amending the act of May 22, 1933 (P.L.853, No.155), entitled "An
2 act relating to taxation; designating the subjects, property
3 and persons subject to and exempt from taxation for all local
4 purposes; providing for and regulating the assessment and
5 valuation of persons, property and subjects of taxation for
6 county purposes, and for the use of those municipal and
7 quasi-municipal corporations which levy their taxes on county
8 assessments and valuations; amending, revising and
9 consolidating the law relating thereto; and repealing
10 existing laws," further providing for the valuation of
11 property in counties of the second class A and third class
12 and for auxiliary boards of assessment appeals; and providing
13 for refunding of certain unconstitutionally collected
14 personal property tax.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Section 402(b) of the act of May 22, 1933
18 (P.L.853, No.155), known as The General County Assessment Law,
19 amended July 15, 2004 (P.L.746, No.91), is amended to read:
20 Section 402. Valuation of Property.--* * *
21 (b) (1) Except as to counties of the first and second class
22 and except as otherwise provided in clause (3), after any county
23 makes a county-wide revision of assessment of real property at
1 values based upon an established predetermined ratio as required
2 by law or after any county changes its established predetermined
3 ratio, each political subdivision, which hereafter for the first
4 time levies its real estate taxes on that revised assessment or
5 valuation, shall, for the first year, reduce its tax rate, if
6 necessary, for the purpose of having the total amount of taxes
7 levied for that year against the real properties contained in
8 the duplicate for the preceding year, equal, in the case of any
9 taxing district, the total amount it levied on such properties
10 the preceding year, notwithstanding the increased valuations of
11 such properties under the revised assessment. The tax rate shall
12 be fixed at a figure which will accomplish this purpose.
13 (2) After establishing a tax rate under clause (1), a
14 political subdivision may, by a separate and specific vote,
15 establish a final tax rate for the first year it levies its real
16 estate taxes on a revised assessment or valuation. The tax rate
17 under this clause shall be fixed at a figure which limits the
18 total amount of taxes levied for that year against the real
19 properties contained in the duplicate for the preceding year to
20 not more than ten per centum greater than the total amount it
21 levied on such properties the preceding year, notwithstanding
22 the increased valuations of such properties under the revised
23 assessment.
24 (2.1) After a county of the second class A or a county of
25 the third class makes a county-wide revision of assessment of
26 real property at values based upon an established predetermined
27 ratio as required by law or after a county of the second class A
28 or a county of the third class changes its established
29 predetermined ratio, each political subdivision, which
30 thereafter for the first time levies its real estate taxes on
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1 that revised assessment or valuation, shall for the first year
2 do the following:
3 (i) by a separate specific vote reduce its tax rate, if
4 necessary, for the purpose of having the total amount of tax
5 revenues from the tax levied for that year against the real
6 properties contained in the duplicate for the preceding year,
7 equal, in the case of any taxing district to the same amount of
8 tax revenues from the tax levied on such properties in the
9 preceding year; and
10 (ii) if necessary to increase tax revenues after the
11 reduction under subclause (i), by a second specific vote
12 increase its tax rate to provide additional tax revenues subject
13 to the limitation that the total amount of tax revenues from the
14 tax levied for that year against the real properties contained
15 in the duplicate for the preceding year equal not more than five
16 per centum (5%) greater than the total amount of tax revenues
17 derived from taxes levied on such properties in the preceding
18 year: Provided, however, That the five per centum (5%)
19 limitation shall not apply to school districts within second
20 class A and third class counties that, as of the effective date
21 of this subclause, have undertaken, by resolution of the board
22 of school directors, a school construction and renovation
23 program for which bond indebtedness has been or will be
24 incurred, in which case a ten per centum (10%) limitation shall
25 apply. No political subdivision may levy any taxes under this
26 clause based on an assessment which has been revised within the
27 last two calendar years, until the taxpayer has been advised by
28 a written statement as to how the new assessment figures are
29 calculated. Any program or method used to obtain new assessment
30 figures shall be explained to the taxpayers in a written
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1 statement easily understood by the average individual. The
2 information shall be made available to the taxpayers by the
3 county commissioners.
4 (3) For the purpose of determining the total amount of taxes
5 to be levied for said first year under clauses (1) [and (2)],
6 (2) and (2.1), the amount to be levied on newly constructed
7 buildings or structures or on increased valuations based on new
8 improvements made to existing houses need not be considered.
9 (4) With the approval of the court of common pleas, upon
10 good cause shown, any such political subdivision may increase
11 the tax rate herein prescribed, notwithstanding the provisions
12 of this subsection.
13 * * *
14 Section 2. The act is amended by adding a section to read:
15 Section 511.1. Appointment of Auxiliary Board of Assessment
16 Appeals.--(a) In conjunction with a county-wide revision of
17 assessments involving either a change in the established
18 predetermined ratio or revaluing the properties and applying the
19 predetermined ratio, the county commissioners of a county of the
20 fourth, fifth, sixth, seventh or eighth class may,
21 notwithstanding any other provision of law to the contrary,
22 create up to four temporary auxiliary appeal boards, each to be
23 known as an auxiliary appeal board. The county commissioners
24 shall establish the term of existence for an auxiliary appeal
25 board not to exceed eighteen months. An auxiliary appeal board
26 shall be composed of three members who shall be appointed by the
27 county commissioners to serve for the time that the auxiliary
28 appeal board is in existence. Members of an auxiliary appeal
29 board shall be competent and qualified residents of the county.
30 Vacancies on an auxiliary appeal board shall be filled by
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1 appointment by the county commissioners for the duration of the
2 auxiliary appeal board's existence. Any salary of members of an
3 auxiliary appeal board shall be fixed by the salary board of the
4 county. The authority of an auxiliary appeal board shall be
5 limited to hearing and determining appeals from assessments in
6 accordance with applicable provisions of law. After one or more
7 auxiliary appeal boards have been established in accordance with
8 this section, additional auxiliary appeal boards may be
9 established only in conjunction with a succeeding county-wide
10 revision of assessments.
11 (b) Subject to the approval of the county commissioners, the
12 authority in the county responsible for assessment appeals may
13 adopt, amend, alter and rescind rules and regulations for the
14 administration of, and the conduct of business and proceedings
15 for, itself and for auxiliary appeal boards. The rules and
16 regulations may require a witness providing testimony at a
17 hearing relative to any aspect of the value of the real estate
18 which is the subject of the assessment or reassessment appeal to
19 disclose, under oath, whether any compensation paid for the
20 testimony is contingent on the result obtained. The rules and
21 regulations shall be in writing and shall be a public record
22 open to examination, inspection and copying in accordance with
23 the act of June 21, 1957 (P.L.390, No.212), referred to as the
24 Right-to-Know Law.
25 (c) For the purpose of this section, an "auxiliary appeal
26 board" shall mean an auxiliary board of assessment appeals in
27 counties of the fourth, fifth, sixth, seventh or eighth class
28 created in accordance with this section.
29 Section 3. (a) Notwithstanding the provisions of the act of
30 May 21, 1943 (P.L.349, No.162), entitled "An act requiring
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1 political subdivisions to refund certain taxes, license fees,
2 penalties, fines or moneys paid thereto, and providing procedure
3 for obtaining such refunds," to the contrary, if the tax imposed
4 under the act of June 17, 1913 (P.L.507, No.335), referred to as
5 the Intangible Personal Property Tax Law, is held by final
6 judgment of a court of competent jurisdiction to be
7 unconstitutional in whole or in part, a county of the second,
8 second class A or third through eighth classes including home
9 rule counties of such classification and a city of the first
10 class coterminous with a county of the first class, imposing or
11 having imposed that tax shall be responsible for refund of only
12 the money attributable to the unconstitutional taxes levied and
13 assessed in 2000 or thereafter.
14 (b) Within 60 days of the final judgment of a court as
15 referred to in subsection (a), the taxing authority taking
16 authority shall send notice of the availability of refund,
17 together with the appropriate forms to request a refund, to each
18 taxpayer, at the taxpayer's address of record, who paid the
19 personal property tax levied and assessed in 1998 or thereafter.
20 The notice shall include notice of the deadline for filing a
21 refund request.
22 (c) Refund requests must be returned to the taxing authority
23 or postmarked within 90 days of the mailing of the notice.
24 Failure of a taxpayer to file on a timely basis shall relieve
25 the taxing authority from liability for payment of a refund.
26 (d) The taxing authority shall make the appropriate refund
27 within 90 days of the receipt of the taxpayer request. If the
28 taxing authority, for reasonable cause, is not able to make a
29 refund within the time limit specified the taxing authority may
30 establish a repayment schedule of equal installments of up to
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1 three years and, in such circumstance, shall make payment
2 together with interest on the sums at the same rate and in the
3 same manner as the Commonwealth is required to pay under section
4 806.1 of the act of April 9, 1929 (P.L.343, No.176), known as
5 The Fiscal Code.
6 Section 4. The amendment of section 402 of the act shall be
7 retroactive to January 1, 2005.
8 Section 5. This act shall take effect as follows:
9 (1) The amendment of section 402 of the act shall take
10 effect in 60 days.
11 (2) The remainder of this act shall take effect
12 immediately.
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