PRINTER'S NO. 4126
No. 2738 Session of 2004
INTRODUCED BY KENNEY, JUNE 21, 2004
REFERRED TO COMMITTEE ON FINANCE, JUNE 21, 2004
AN ACT 1 Amending the act of June 27, 1939 (P.L.1199, No.404), entitled 2 "An act relating to the assessment of real and personal 3 property and other subjects of taxation in counties of the 4 first class; providing for the appointment of members of the 5 board of revision of taxes by the judges of the courts of 6 common pleas; providing for the appointment, by the board, of 7 personal property assessors, real estate assessors and 8 assistant real estate assessors, clerks and other employes; 9 fixing the salaries of members of the board, assessors and 10 assistant assessors, and providing for the payment of 11 salaries and expenses from the county treasury; prescribing 12 the powers and duties of the board and of the assessors, the 13 time and manner of making assessments, of the revision and 14 notice of assessments and of appeals therefrom; prescribing 15 the records of assessments; and repealing existing laws," 16 providing for the definition of "assessment ratio"; and 17 establishing a revenue-neutral tax rate after a countywide 18 revision of real property assessment. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 Section 1. Section 1.1 of the act of June 27, 1939 22 (P.L.1199, No.404), entitled "An act relating to the assessment 23 of real and personal property and other subjects of taxation in 24 counties of the first class; providing for the appointment of 25 members of the board of revision of taxes by the judges of the
1 courts of common pleas; providing for the appointment, by the 2 board, of personal property assessors, real estate assessors and 3 assistant real estate assessors, clerks and other employes; 4 fixing the salaries of members of the board, assessors and 5 assistant assessors, and providing for the payment of salaries 6 and expenses from the county treasury; prescribing the powers 7 and duties of the board and of the assessors, the time and 8 manner of making assessments, of the revision and notice of 9 assessments and of appeals therefrom; prescribing the records of 10 assessments; and repealing existing laws," is amended by adding 11 a definition to read: 12 Section 1.1. The following words and phrases when used in 13 this act shall have, unless the context clearly indicates 14 otherwise, the meanings given to them in this section: 15 "Assessment ratio" shall include either of the following: 16 (1) The established predetermined ratio. 17 (2) A ratio or factor used by the board to determine the 18 market value of a property from its actual market value, 19 including a ratio or factor used to equalize assessed values. 20 * * * 21 Section 2. The act is amended by adding a section to read: 22 Section 13.1. (a) After a county of the first class makes a 23 county-wide revision of assessment of real property at values 24 based upon an established predetermined ratio as required by law 25 or after any county of the first class changes its assessment 26 ratio, each political subdivision, which hereafter for the first 27 time levies its real estate taxes on that revised assessment or 28 valuation, shall, for the first year it levies its real estate 29 taxes on a revised assessment or valuation, establish a revenue- 30 neutral tax rate which limits the total amount of taxes levied 20040H2738B4126 - 2 -
1 for that year against the real properties levied against in the 2 preceding year to not more than the total amount it levied on 3 the properties the preceding year, notwithstanding the increased 4 valuations of the properties under the revised assessment. For 5 the purpose of determining the total amount of taxes to be 6 levied for the first year under this subsection, the amount to 7 be levied on newly constructed buildings or structures or on 8 increased valuations based on new improvements made to existing 9 buildings or structures need not be considered. 10 (b) After first establishing a revenue-neutral tax rate 11 under subsection (a), a political subdivision may, by a separate 12 and specific vote, establish a final tax rate for the first year 13 it levies its real estate taxes on a revised assessment or 14 valuation. 15 Section 3. This act shall take effect immediately. F17L16MSP/20040H2738B4126 - 3 -