PRINTER'S NO. 1268
No. 1122 Session of 1997
INTRODUCED BY BARD, HERMAN, LESCOVITZ AND COY, APRIL 2, 1997
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 2, 1997
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 of the act is amended by adding
7 subsections to read:
8 Section 2504. Assessment of Property; Duties of Assessor.--*
9 * *
10 (f) If a third class city changes its assessment base by
11 applying a change in predetermined ratio, the board shall apply
12 the percentage change between the existing predetermined ratio
13 and newly established predetermined ratio to the county's common
14 level ratio to establish the certified revised common level
15 ratio for the year in which the assessment was revised.
16 (g) If a third class city, which assesses property
17 independently from the county in which it is located, performs a
18 citywide revision of assessments by revaluing the properties and
19 applying the city established predetermined ratio, the city
20 shall utilize its predetermined ratio instead of the city common
21 level ratio for the year in which the assessment was revised and
22 until such time as the common level ratio, as determined by the
23 board, reflects the revaluing of properties from the revision of
24 assessments.
25 Section 3. Section 2520 of the act, amended December 13,
26 1982 (P.L.1192, No.273), is amended to read:
27 Section 2520. Custody of Assessment Books; Completion of
28 Work of Board.--(a) The board of revision of taxes and appeals
29 shall procure and have the custody and control of all books
30 relating to assessment of city taxes, and keep them arranged
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1 according to wards and dates, and shall furnish the city
2 assessor the necessary books for making the assessment, which,
3 on the completion of such assessment, shall be returned to such
4 board of revision of taxes and appeals. The board shall complete
5 its labors, and the hearing and determination of all appeals, on
6 or before the first day of December of each year, or as soon
7 thereafter as practicable, after which the assessment shall be
8 copied, by wards, into a tax duplicate or duplicates for the use
9 of the city. The assessment, so corrected and copied, shall be
10 and remain a lawful assessment for the purpose of city taxation
11 until altered as provided in this article. The board shall give
12 notice in writing within five days after its disposition of each
13 appeal, advising the taxable of its decision.
14 (b) In any appeal of an assessment the board shall make the
15 following determinations:
16 (1) The [current] market value [for the tax year in
17 question] as of the date such appeal was filed with the board.
18 (2) The common level ratio published by the State Tax
19 Equalization Board on or before July 1 of the year prior to the
20 tax year on appeal before the board.
21 (c) The board, after determining the [current] market value
22 of the property for the tax year in question, shall then apply
23 the established predetermined ratio to such value unless the
24 common level ratio varies by more than fifteen per centum from
25 the established predetermined ratio, in which case the board
26 shall apply the common level ratio to the [current] market value
27 of the property for the tax year in question. As an example, in
28 the case of a predetermined ratio of thirty per centum, the
29 following calculations would be made to determine that the
30 permissible ratio variance is twenty-five and one-half per
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1 centum to thirty-four and one-half per centum:
2 30% (PDR) x 15% = 4.5%
3 30% (PDR) + 4.5% = 34.5%
4 30% (PDR) - 4.5% = 25.5%
5 (c.1) If a third class city changes its assessment base by
6 applying a change in predetermined ratio, the board shall apply
7 the percentage change between the existing predetermined ratio
8 and newly established predetermined ratio to the county's common
9 level ratio to establish the certified revised common level
10 ratio for the year in which the assessment was revised.
11 (c.2) If a third class city, which assesses property
12 independently from the county in which it is located, performs a
13 citywide revision of assessments by revaluing the properties and
14 applying the city established predetermined ratio, the board
15 shall utilize the city's predetermined ratio instead of the city
16 common level ratio for the year in which the assessment was
17 revised and until such time as the common level ratio, as
18 determined by the board, reflects the revaluing of properties
19 from the revision of assessments.
20 (d) Nothing herein shall prevent any appellant from
21 appealing any base year valuation without reference to ratio.
22 Section 4. The act is amended by adding a section to read:
23 Section 2520.1. Error in Assessment; Refunds.--(a) If,
24 through mathematical or clerical error, an assessment is greater
25 than it should have been and taxes are paid in accordance with
26 the incorrect assessment, the board of revision of taxes and
27 appeals shall inform the appropriate individuals and shall make
28 a refund to the taxpayer for whichever of the following is less:
29 (1) The overage of taxes paid during the period of time the
30 error existed.
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1 (2) The overage of taxes paid during the six years preceding
2 the date the board discovers the error.
3 (b) A taxpayer may petition the board to determine if there
4 has been an error in the assessment of the taxpayer's property.
5 (c) Reassessment which results from a judgment of the board
6 that is based on the method of assessment utilized does not
7 constitute an error under this section.
8 Section 5. Section 2521 of the act, amended December 13,
9 1982 (P.L.1192, No.273), is amended to read:
10 Section 2521. Appeals from Decisions of Board; Costs.--(a)
11 Any owner of taxable property who may feel aggrieved by the
12 decision of the board of revision of taxes and appeals as to the
13 assessment or valuation of his taxable property may appeal from
14 the decision of the board of revision of taxes and appeals to
15 the court of common pleas of the county within which such
16 property is situated, and, for that purpose, may present to said
17 court, or file in the prothonotary's office, within sixty days
18 after mailing notice to him that the board of revision of taxes
19 and appeals have held the appeals provided for by law and acted
20 on the said assessments and valuations, a petition signed by
21 him, his agent, or attorney, setting forth the facts of the
22 case. The court shall thereupon, after notice to the said board
23 of revision of taxes and appeals, hear the said appeal and the
24 proofs in the case, and make such orders and decrees touching
25 the matter complained of as to the judges of said court may seem
26 just and equitable, having due regard to the valuation and
27 assessment made of other property in such city. The costs of the
28 appeal and hearing shall be apportioned or paid as the court may
29 direct. The said appeals shall not, however, prevent the
30 collection of the taxes complained of, but in case the same
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1 shall be reduced, then the excess shall be returned to the
2 person or persons who shall have paid the same.
3 (b) In any appeal of an assessment the court shall make the
4 following determinations:
5 (1) The [current] market value [for the tax year in
6 question] as of the date such appeal was filed before a city
7 council acting in its capacity as board of revision of taxes and
8 appeals. In the event subsequent years have been made a part of
9 an appeal, the court shall determine the respective market value
10 for each such year.
11 (2) The common level ratio which was applicable in an appeal
12 to a city council acting in its capacity as board of revision of
13 taxes and appeals. In the event subsequent years have been made
14 a part of an appeal to the court, the court shall determine the
15 respective common level ratio for each such year published by
16 the State Tax Equalization Board on or before the year prior to
17 the tax year being appealed.
18 (c) The court, after determining the [current] market value
19 of the property [for the tax year in question] under subsection
20 (b)(1), shall then apply the established predetermined ratio to
21 such value unless the corresponding common level ratio
22 determined under subsection (b)(2) varies by more than fifteen
23 per centum from the established predetermined ratio, in which
24 case the court shall apply the respective common level ratio to
25 the [current] corresponding market value of the property [for
26 the tax year in question]. As an example, in the case of a
27 predetermined ratio of thirty per centum, the following
28 calculations would be made to determine that the permissible
29 ratio variance is twenty-five and one-half per centum to thirty-
30 four and one-half per centum:
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1 30% (PDR) x 15% = 4.5%
2 30% (PDR) + 4.5% = 34.5%
3 30% (PDR) - 4.5% = 25.5%
4 (c.1) If a third class city changes its assessment base by
5 applying a change in predetermined ratio, the court shall apply
6 the percentage change between the existing predetermined ratio
7 and newly established predetermined ratio to the county's common
8 level ratio to establish the certified revised common level
9 ratio for the year in which the assessment was revised.
10 (c.2) If a third class city, which assesses property
11 independently from the county in which it is located, performs a
12 citywide revision of assessments by revaluing the properties and
13 applying the city established predetermined ratio, the court
14 shall utilize the city's predetermined ratio instead of the city
15 common level ratio for the year in which the assessment was
16 revised and until such time as the common level ratio, as
17 determined by the board, reflects the revaluing of properties
18 from the revision of assessment.
19 (d) Nothing herein shall prevent any appellant from
20 appealing any base year valuation without reference to ratio.
21 Section 6. This act shall take effect in 60 days.
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