PRINTER'S NO. 1267
No. 1121 Session of 1997
INTRODUCED BY COY, BARD, HERMAN AND LESCOVITZ, APRIL 2, 1997
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 2, 1997
AN ACT 1 Amending the act of June 27, 1947 (P.L.1046, No.447), entitled, 2 as amended, "An act providing for equalization of assessed 3 valuations of real property throughout the Commonwealth for 4 use in determining the amount and allocation of Commonwealth 5 subsidies to school districts; providing for the establishing 6 of a common level ratio for each county; creating a State Tax 7 Equalization Board; and prescribing its powers and duties; 8 imposing duties on certain local officers, agents, boards, 9 commissions and departments; and making an appropriation," 10 further providing for powers and duties of the State Tax 11 Equalization Board, for monthly reports, for annual reports, 12 for certification, for adjusting valuations, for subsidies, 13 for special aid to school districts and for the common level 14 ratio. 15 The General Assembly of the Commonwealth of Pennsylvania 16 hereby enacts as follows: 17 Section 1. Section 1 of the act of June 27, 1947 (P.L.1046, 18 No.447), referred to as the State Tax Equalization Board Law, is 19 amended to read: 20 Section 1. [Creation of Board.--There is hereby created an 21 independent administrative board which shall be known as the 22 State Tax Equalization Board, hereinafter referred to as the 23 board.] Short Title.--This act shall be known and may be cited 24 as the "State Tax Equalization Board Law."
1 Section 2. The act is amended by adding sections to read: 2 Section 1.1. Definitions.--The following terms whenever used 3 or referred to in this act shall have the following meanings, 4 except in those instances where the context clearly indicates 5 otherwise: 6 (1) The term "board" shall mean the State Tax Equalization 7 Board. 8 (2) The term "city" shall mean, except when it is used in 9 section 17.1(d)(2) of this act, a city that assesses real 10 property independently of the county assessment process and 11 which is either a third class city or a city which would be a 12 city of the third class but for the adoption of a home rule 13 charter under the act of April 13, 1972 (P.L.184, No.62), known 14 as the "Home Rule Charter and Optional Plans Law." As used in 15 section 17.1(d)(2), the term shall mean a city of the third 16 class which does not assess real property independently of the 17 county assessment process. 18 (3) The term "council" shall mean the governing body of a 19 third class city, or the legislative policy-making body in a 20 city which would be a city of the third class but for the 21 adoption of a home rule charter under the act of April 13, 1972 22 (P.L.184, No.62), known as the "Home Rule Charter and Optional 23 Plans Law." 24 (4) The term "real estate registry office" shall mean the 25 office established in a city of the third class under the act of 26 June 23, 1931 (P.L.932, No.317), known as "The Third Class City 27 Code," or a like office in a city which would be a city of the 28 third class but for the adoption of a home rule charter under 29 the act of April 13, 1972 (P.L.184, No.62), known as the "Home 30 Rule Charter and Optional Plans Law." 19970H1121B1267 - 2 -
1 (5) The term "secretary" shall mean the Secretary of 2 Education of the Commonwealth. 3 Section 1.2. Creation of Board.--There is hereby created an 4 independent administrative board which shall be known as the 5 State Tax Equalization Board, hereinafter referred to as the 6 board. 7 Section 3. Section 7 of the act, amended or added April 6, 8 1949 (P.L.404, No.52), December 30, 1959 (P.L.2072, No.760) and 9 December 13, 1982 (P.L.1158, No.267), is amended to read: 10 Section 7. General Powers and Duties of the Board.--The 11 board shall have the power and its duties shall be-- 12 (1) To determine the market value of taxable real property 13 in each of the school districts and to conduct investigations, 14 require information and have access to whatever public records 15 are necessary in making each such determination. 16 (2) To require, in counties of the first class, the board of 17 revision of taxes of such county, [and] the county commissioners 18 of each county other than a county of the first class, and the 19 city council, to furnish to it, monthly, a list of all 20 conveyances or other transfers of real estate, or any interest 21 therein, recorded within such city or county during the 22 preceding month, stating the value of the Federal tax stamps 23 affixed to the deed for each such conveyance, and the assessed 24 valuations for city or county tax purposes of such real estate. 25 (3) To certify to the [Superintendent of Public Instruction] 26 secretary, not later than the first day of July of each odd 27 numbered year, a list of all school districts, showing the 28 market value of taxable real property, and the assessed 29 valuation for county tax purposes, and to furnish to the board 30 of school directors of each school district as much of such 19970H1121B1267 - 3 -
1 information as pertains to such school district. In even 2 numbered years, the board shall certify only those changes in 3 market values which result from properties going on or off the 4 assessment rolls for school purposes. The first lists shall be 5 furnished not later than the first day of July, one thousand 6 nine hundred forty-nine. 7 (4) To hear and decide appeals of parties who may feel 8 aggrieved by any finding or conclusion of the board. 9 (5) To investigate the finances and any other general 10 circumstances of any school district requesting special aid from 11 the [Superintendent of Public Instruction] secretary, and to 12 advise the [Superintendent of Public Instruction] secretary in 13 making grants of special aid. 14 (6) To make surveys and investigations of the finances of 15 school districts in the interest of a more equitable 16 distribution of school support. 17 (7) To subpoena State and local officials and to require 18 from them such information as may be necessary for the proper 19 discharge of its duties. 20 (8) To have and exercise all of the powers and perform all 21 the duties imposed upon independent administrative boards by the 22 Administrative Code of 1929, and its amendments. 23 (9) To establish, annually, prior to July 1, a common level 24 ratio of assessed value to market value in each city and county 25 for the prior calendar year. 26 (10) To promulgate rules and regulations necessary to 27 establish standards and procedures to govern the assessment 28 process uniformly throughout this Commonwealth. 29 Section 4. Section 9 of the act, amended April 6, 1949 30 (P.L.404, No.52) and July 25, 1967 (P.L.182, No.54), is amended 19970H1121B1267 - 4 -
1 to read: 2 Section 9. Monthly Reports by Cities and Counties; 3 Commonwealth Payments.--(a) It shall be the duty of the board 4 of revision of taxes in all counties of the first class [and 5 of], the county commissioners of each county other than a county 6 of the first class, and the city council of each city on the 7 fifteenth day of each month to prepare, certify and deliver to 8 the board for its use and in such form and manner as the board 9 may prescribe a list of all conveyances or other transfers of 10 real estate, or any interest therein, recorded within [the 11 county] its jurisdiction during the preceding month, stating the 12 value of the [Federal] tax stamps affixed to the deed for each 13 such conveyance or transfer as set forth within such instrument, 14 and the assessed valuation for [county] tax purposes of such 15 real estate. Pursuant to the requirements of this section, [the 16 recorder of deeds of each county of the first class shall 17 prepare and deliver to the board of revision of taxes of such 18 county and in all other counties the recorder of deeds of each 19 such other county shall prepare and deliver to the county 20 commissioners] at the end of each month[,] a list of all the 21 real estate so conveyed or transferred within [such county] that 22 jurisdiction during such month, stating the value of [Federal] 23 tax stamps affixed to the instrument so conveying or 24 transferring such real estate, or any interest therein[.], shall 25 be prepared and delivered to the following: 26 (1) The board of revision of taxes of a county of the first 27 class, by the recorder of deeds of that county. 28 (2) The county commissioners of a county other than a county 29 of the first class, by the recorder of deeds of that county. 30 (3) The city council of a city, by the real estate registry 19970H1121B1267 - 5 -
1 office of that city. 2 (b) The board shall pay to the board of revision of taxes of 3 counties of the first class [and], to the county commissioners 4 of each county other than a county of the first class, and to 5 the city council of each city the sum of twenty cents (20¢) for 6 each such conveyance or transfer of real estate on each list so 7 prepared, certified and delivered to the board for its use. 8 Section 5. Sections 10 and 12 of the act are amended to 9 read: 10 Section 10. Annual Reports of Local Assessing Officials.--On 11 or before the first day of June, one thousand nine hundred 12 forty-eight and on or before the first day of June of every year 13 thereafter, the board of revision of taxes of counties of the 14 first class, the board of property assessment appeals and review 15 of counties of the second class, the board for the assessment 16 and revision of taxes of counties of the third class and the 17 county commissioners of all other counties shall file a 18 certificate with the board, in such form as it may prescribe and 19 on blanks to be furnished by it, showing the assessed valuation 20 of all real property in each school district in the county on 21 which the taxes for the then current year are levied. [In the 22 year one thousand nine hundred forty-eight such certificates 23 shall be filed both with the Superintendent of Public 24 Instruction, as now required by law, and with the board as 25 required hereby. But thereafter no] No certificate shall be 26 required to be filed with the [Superintendent of Public 27 Instruction] secretary. 28 Section 12. Certification to [Superintendent of Public 29 Instruction] Secretary and School Districts.--As soon as the 30 market value of the real property in each school district 19970H1121B1267 - 6 -
1 throughout the Commonwealth has been determined and the 2 percentage of such value of the assessed valuation for county 3 tax purposes has been established, the board shall certify the 4 same to the [Superintendent of Public Instruction] secretary and 5 as to each school district to the board of school directors 6 thereof. 7 Section 6. Sections 14 and 15 of the act, amended December 8 30, 1959 (P.L.2072, No.760), are amended to read: 9 Section 14. Annual Adjustments of Valuations.--On or before 10 the first day of July, one thousand nine hundred forty-nine and 11 on or before the first day of July of each odd numbered year 12 thereafter, the board shall adjust the market value of real 13 property in each school district to conform with such new data 14 as may have been accumulated since the market values for the 15 last preceding two years were determined, and shall determine 16 the percentage of such market value of the assessed valuation of 17 all real property in the district on which county taxes for the 18 then current year are levied. Such market values, percentages 19 and adjustments shall be certified to the [Superintendent of 20 Public Instruction] secretary and the several school districts, 21 as hereinbefore provided, with the same rights to school 22 districts to hearings and determinations by the board. 23 Section 15. Determination and Apportionment of Commonwealth 24 Subsidies.--As soon as possible each odd numbered year, after 25 the final adjustment of values by the board, the board shall 26 certify to the [Superintendent of Public Instruction] secretary 27 the market value of all real property in each school district in 28 the Commonwealth. Beginning with payment to be made for the 29 school year one thousand nine hundred forty-nine--one thousand 30 nine hundred fifty, each school district's assessed valuation to 19970H1121B1267 - 7 -
1 be used for purposes of computing its standard reimbursement 2 fraction shall be the market value of the taxable real property 3 in the school district as finally adjusted and determined upon 4 by the board, and not the assessed valuation for county tax 5 purposes as now provided by law. Beginning with the year one 6 thousand nine hundred forty-nine and every two (2) years 7 thereafter, in place of the valuations now required by law to be 8 used for such purposes, the market value of the real property in 9 each school district, as finally adjusted and determined upon by 10 the board, shall be used by the [Superintendent of Public 11 Instruction] secretary in ascertaining and determining the 12 amount of funds required to meet payments to school districts 13 and vocational school districts which become due and payable by 14 law within the two fiscal years beginning June first, one 15 thousand nine hundred forty-nine and ending May thirty-first, 16 one thousand nine hundred fifty-one, and each biennium 17 thereafter, and to apportion and allot the same to and among the 18 respective school districts. 19 Section 7. Section 16 of the act is amended to read: 20 Section 16. Special Aid to School Districts.--Before 21 granting any special aid to any school district, the 22 [Superintendent of Public Instruction] secretary shall submit 23 the request therefor to the board. The board shall make its 24 recommendations with respect thereto, in so far as the same is 25 affected by the district's ability to raise funds by taxation. 26 Before making any such recommendation, the board shall carefully 27 investigate and study the financial circumstances of the 28 district and whether or not it has exhausted its available 29 taxing power not only on real property, but also on all other 30 available property and subjects of taxation, and that collection 19970H1121B1267 - 8 -
1 of such taxes is being effectively made and enforced. Such 2 recommendations shall be for the advice of the [Superintendent 3 of Public Instruction] secretary in passing on such requests. 4 Section 8. Section 16.1 of the act, added December 13, 1982 5 (P.L.1158, No.267), is amended to read: 6 Section 16.1. Establishment of a Common Level Ratio.--(a) 7 The State Tax Equalization Board shall, annually, prior to July 8 1, establish for each city and county a common level ratio for 9 the prior calendar year. 10 (b) In arriving at such ratio, the board shall use 11 statistically acceptable techniques, including sales ratio 12 studies. The board's method in arriving at the ratio shall be 13 made available to the public. The ratio shall be certified to 14 the chief assessor of each county and it shall be admissible as 15 evidence in any appeal involving real property tax assessments. 16 (c) Any political subdivision or taxpayer aggrieved by any 17 finding, conclusion or any method or technique of the board made 18 pursuant to this section may, in writing, state objections 19 thereto and may appeal de novo such ratio determination to the 20 Commonwealth Court. After receiving any objections, the board 21 may grant a hearing and may modify or adjust its findings and 22 computations as it shall appear proper. 23 (d) When a county has effected a countywide revision of the 24 assessment which was used to develop the common level ratio last 25 determined by the board, the following applies: 26 (1) If a county changes its assessment base by applying a 27 change in predetermined ratio, the county shall apply the 28 percentage change between the existing predetermined ratio and 29 newly established predetermined ratio to the county's common 30 level ratio to establish the certified revised common level 19970H1121B1267 - 9 -
1 ratio for the year in which the assessment was revised. 2 (2) If a third class city changes its assessment base by 3 applying a change in the city's predetermined established ratio, 4 the city shall apply the percentage to the county's common level 5 ratio to establish the certified revised common level ratio for 6 the year in which the assessment was revised. 7 (3) If the county performs a countywide revision of 8 assessments by revaluing the properties and applying an 9 established predetermined ratio, the county shall utilize the 10 established predetermined ratio instead of the common level 11 ratio for the year in which the assessment was revised and until 12 such time as the common level ratio determined by the State Tax 13 Equalization Board reflects the revaluing of properties 14 resulting from the revision of assessment. 15 (4) If a third class city which assesses property 16 independently from the county in which it is located performs a 17 citywide revision of assessments by revaluing the properties and 18 applying the city's established predetermined ratio, the city 19 shall utilize its established predetermined ratio instead of the 20 city's common level ratio for the year in which the assessment 21 was revised and until such time as the common level ratio as 22 determined by the board reflects the revaluing of properties 23 from the revision of assessments. 24 Section 9. This act shall take effect in 60 days. A17L72MRD/19970H1121B1267 - 10 -