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 19970H1122B1268 - 2 -
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 19970H1122B1268 - 3 -
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. 19970H1122B1268 - 4 -
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 19970H1122B1268 - 5 -
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: 19970H1122B1268 - 6 -
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. A21L11MRD/19970H1122B1268 - 7 -