SENATE AMENDED PRIOR PRINTER'S NOS. 3945, 4031 PRINTER'S NO. 4176
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
SENATOR CONTI, FINANCE, IN SENATE, AS AMENDED, NOVEMBER 14, 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. Section 1980.2 of the act of July 28, 1953 <-- 11 (P.L.723, No.230), known as the Second Class County Code, added 12 December 21, 1998 (P.L.1088, No.146), is amended to read: 13 Section 1980.2. Limits on Counties of the Second Class.--(a) 14 Notwithstanding any provisions of the act of June 21, 1939 15 (P.L.626, No.294), referred to as the Second Class County 16 Assessment Law, to the contrary, when a county of the second 17 class makes its annual reassessment at values based upon an 18 established predetermined ratio as required by law or when a
1 county of the second class changes its established predetermined 2 ratio, each political subdivision which hereafter levies its 3 real estate taxes on that revised assessment or valuation shall 4 for that year reduce its tax rate, if necessary, for the purpose 5 of having the total amount of property tax revenue received 6 exclusively as a result of the reassessment or change in ratio 7 not to exceed one hundred five per cent of the total amount of 8 property tax revenue received in the preceding year, 9 notwithstanding the increased valuations of properties under the 10 annual reassessment system. For the purpose of determining the 11 total amount of revenue received exclusively as a result of the 12 reassessment or change in ratio for the year, the amount to be 13 levied on newly constructed buildings or structures or on 14 increased valuations based on new improvements made to existing 15 structures shall not be considered. 16 (b) Notwithstanding the provisions of the act of May 25, 17 1945 (P.L.1050, No.394), known as the "Local Tax Collection 18 Law," when a county of the second class makes its annual 19 reassessment at values based upon an established predetermined 20 ration as required by law or when a county of the second class 21 changes its established predetermined ratio, each political 22 subdivision which hereafter levies its real estate taxes on that 23 revised assessment or valuation shall allow taxpayers to pay 24 such real estate taxes in four equal installments. A political 25 subdivision shall provide by ordinance or resolution for the 26 collection and payment of installments at specified dates during 27 each successive quarter of its fiscal year. Where payment of 28 taxes is made on the installment basis, no abatement or discount 29 shall be allowed on said taxes. The unpaid installments shall 30 not be considered delinquent if paid on or before the respective 20000H2764B4176 - 2 -
1 installment dates established by ordinance or resolution of the 2 political subdivision. To each installment on the date when it 3 becomes delinquent a penalty may be added as provided by law. 4 Section 2. The act is amended by adding an article to read: 5 SECTION 1. THE ACT OF JULY 28, 1953 (P.L.723, NO.230), KNOWN <-- 6 AS THE SECOND CLASS COUNTY CODE, IS AMENDED BY ADDING AN ARTICLE 7 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. 20000H2764B4176 - 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 20000H2764B4176 - 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 3 2. This act shall take effect January 1, 2001. <-- I22L16SFL/20000H2764B4176 - 5 -