PRIOR PRINTER'S NO. 3945 PRINTER'S NO. 4031
No. 2764 Session of 2000
INTRODUCED BY MAHER, HABAY, PIPPY, STEVENSON, KAISER, ROBINSON,
PRESTON, COSTA, DeLUCA, DERMODY, FRANKEL, LAUGHLIN,
LEVDANSKY, MARKOSEK, MICHLOVIC, ORIE, PETRONE, PISTELLA,
READSHAW, RUFFING, TRELLO, WALKO AND HENNESSEY,
SEPTEMBER 26, 2000
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 3, 2000
AN ACT
1 Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
2 as amended, "An act relating to counties of the second class
3 and second class A; amending, revising, consolidating and
4 changing the laws relating thereto," providing for
5 INSTALLMENT PAYMENT OF POLITICAL SUBDIVISION REAL ESTATE <--
6 TAXES UPON REASSESSMENT BY COUNTIES OF THE SECOND CLASS AND
7 FOR optional assessed value limitations.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The act of July 28, 1953 (P.L.723, No.230), known <--
11 as the Second Class County Code, is amended by adding an article
12 to read:
13 SECTION 1. SECTION 1980.2 OF THE ACT OF JULY 28, 1953 <--
14 (P.L.723, NO.230), KNOWN AS THE SECOND CLASS COUNTY CODE, ADDED
15 DECEMBER 21, 1998 (P.L.1088, NO.146), IS AMENDED TO READ:
16 SECTION 1980.2. LIMITS ON COUNTIES OF THE SECOND CLASS.--(A)
17 NOTWITHSTANDING ANY PROVISIONS OF THE ACT OF JUNE 21, 1939
18 (P.L.626, NO.294), REFERRED TO AS THE SECOND CLASS COUNTY
1 ASSESSMENT LAW, TO THE CONTRARY, WHEN A COUNTY OF THE SECOND
2 CLASS MAKES ITS ANNUAL REASSESSMENT AT VALUES BASED UPON AN
3 ESTABLISHED PREDETERMINED RATIO AS REQUIRED BY LAW OR WHEN A
4 COUNTY OF THE SECOND CLASS CHANGES ITS ESTABLISHED PREDETERMINED
5 RATIO, EACH POLITICAL SUBDIVISION WHICH HEREAFTER LEVIES ITS
6 REAL ESTATE TAXES ON THAT REVISED ASSESSMENT OR VALUATION SHALL
7 FOR THAT YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE PURPOSE
8 OF HAVING THE TOTAL AMOUNT OF PROPERTY TAX REVENUE RECEIVED
9 EXCLUSIVELY AS A RESULT OF THE REASSESSMENT OR CHANGE IN RATIO
10 NOT TO EXCEED ONE HUNDRED FIVE PER CENT OF THE TOTAL AMOUNT OF
11 PROPERTY TAX REVENUE RECEIVED IN THE PRECEDING YEAR,
12 NOTWITHSTANDING THE INCREASED VALUATIONS OF PROPERTIES UNDER THE
13 ANNUAL REASSESSMENT SYSTEM. FOR THE PURPOSE OF DETERMINING THE
14 TOTAL AMOUNT OF REVENUE RECEIVED EXCLUSIVELY AS A RESULT OF THE
15 REASSESSMENT OR CHANGE IN RATIO FOR THE YEAR, THE AMOUNT TO BE
16 LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES OR ON
17 INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO EXISTING
18 STRUCTURES SHALL NOT BE CONSIDERED.
19 (B) NOTWITHSTANDING THE PROVISIONS OF THE ACT OF MAY 25,
20 1945 (P.L.1050, NO.394), KNOWN AS THE "LOCAL TAX COLLECTION
21 LAW," WHEN A COUNTY OF THE SECOND CLASS MAKES ITS ANNUAL
22 REASSESSMENT AT VALUES BASED UPON AN ESTABLISHED PREDETERMINED
23 RATION AS REQUIRED BY LAW OR WHEN A COUNTY OF THE SECOND CLASS
24 CHANGES ITS ESTABLISHED PREDETERMINED RATIO, EACH POLITICAL
25 SUBDIVISION WHICH HEREAFTER LEVIES ITS REAL ESTATE TAXES ON THAT
26 REVISED ASSESSMENT OR VALUATION SHALL ALLOW TAXPAYERS TO PAY
27 SUCH REAL ESTATE TAXES IN FOUR EQUAL INSTALLMENTS. A POLITICAL
28 SUBDIVISION SHALL PROVIDE BY ORDINANCE OR RESOLUTION FOR THE
29 COLLECTION AND PAYMENT OF INSTALLMENTS AT SPECIFIED DATES DURING
30 EACH SUCCESSIVE QUARTER OF ITS FISCAL YEAR. WHERE PAYMENT OF
20000H2764B4031 - 2 -
1 TAXES IS MADE ON THE INSTALLMENT BASIS, NO ABATEMENT OR DISCOUNT
2 SHALL BE ALLOWED ON SAID TAXES. THE UNPAID INSTALLMENTS SHALL
3 NOT BE CONSIDERED DELINQUENT IF PAID ON OR BEFORE THE RESPECTIVE
4 INSTALLMENT DATES ESTABLISHED BY ORDINANCE OR RESOLUTION OF THE
5 POLITICAL SUBDIVISION. TO EACH INSTALLMENT ON THE DATE WHEN IT
6 BECOMES DELINQUENT A PENALTY MAY BE ADDED AS PROVIDED BY LAW.
7 SECTION 2. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
8 ARTICLE XIX-A
9 Optional Assessed Value Limitations
10 Section 1901-A. Definitions.--The following words and
11 phrases as used in this article shall be construed to have the
12 following meaning:
13 "Base year assessed value," the assessed value upon which
14 the real property tax is levied by the political subdivision in
15 the year prior to the first year real property taxes are levied
16 under a mandated county-wide reassessment.
17 "Homestead," shall have the same meaning as set forth in the
18 act of March 11, 1971 (P.L.104, No.3), known as the "Senior
19 Citizens Rebate and Assistance Act."
20 "Mandated county-wide reassessment," the application of new
21 assessed values resulting from a county-wide revision of
22 assessment of real property that is completed pursuant to a
23 court order.
24 "Qualified owner-occupant," a claimant as defined by the act
25 of March 11, 1971 (P.L.104, No.3), known as the "Senior Citizens
26 Rebate and Assistance Act," who is qualified to receive a
27 property tax rebate under the "Senior Citizens Rebate and
28 Assistance Act."
29 "Tax-neutral assessed value," the assessed value calculated
30 under section 1903-A.
20000H2764B4031 - 3 -
1 "Tax-neutral ratio," the ratio computed by dividing the
2 total assessed values for all properties in the school district
3 in the first year after a mandated county-wide reassessment by
4 the assessed values for all properties in the school district in
5 the year immediately prior to a mandated county-wide
6 reassessment.
7 Section 1902-A. Optional Limitations on Assessed Value.--A
8 county of the second class or a political subdivision located
9 within a county of the second class may, by adopting an
10 ordinance or resolution, utilize the tax-neutral assessed value
11 when levying the real property tax on the homestead of a
12 qualified owner-occupant after a mandated county-wide
13 reassessment.
14 Section 1903-A. Calculation of Tax-Neutral Assessed Value.--
15 If a political subdivision has adopted an ordinance or
16 resolution under section 1902-A, the assessed value of the
17 homestead of a qualified owner-occupant shall not exceed the
18 base year assessed value of the homestead multiplied by the tax-
19 neutral ratio for the school district in which the homestead is
20 located. The maximum assessed value calculated under this
21 section shall apply only to the real property tax levied by the
22 political subdivision that has adopted the ordinance or
23 resolution.
24 Section 1904-A. Duration of Tax-Neutral Assessed Value.--The
25 tax-neutral assessed value of the homestead shall continue in
26 effect until the earlier of:
27 (1) the first year the owner of the homestead fails to meet
28 the requirements to receive property tax rebate under the act of
29 March 11, 1971 (P.L.104, No.3), known as the "Senior Citizens
30 Rebate and Assistance Act"; or
20000H2764B4031 - 4 -
1 (2) the date of the sale or transfer of the property to a
2 person other than the spouse of the qualified owner-occupant.
3 Section 1905-A Administration.--A county of the second class
4 shall administer the qualification of homeowners for a tax-
5 neutral assessed value under this act on behalf of all other
6 political subdivisions within the county. A person who has
7 qualified for and received a property tax rebate under the act
8 of March 11, 1971 (P.L.104, No.3), known as the "Senior Citizens
9 Rebate and Assistance Act," shall not be required to file any
10 additional application with the county in order to receive the
11 tax-neutral assessed value with respect to real property taxes
12 levied by a political subdivision adopting an ordinance or
13 resolution under section 1902-A.
14 Section 1906-A. Sharing of Information.--The Secretary of
15 Revenue is authorized and directed to provide a county of the
16 second class with the property tax rebate information in the
17 secretary's possession that is necessary to determine the
18 identity and qualifications of any person for the tax-neutral
19 assessment under this act. The information provided by the
20 secretary shall be confidential and shall not be used for
21 purposes other than the administration of this act.
22 Section 2 3. This act shall take effect January 1, 2001. <--
I22L16SFL/20000H2764B4031 - 5 -