PRINTER'S NO. 211
No. 216 Session of 1999
INTRODUCED BY GERLACH, MOWERY, MELLOW, WOZNIAK AND FUMO, JANUARY 25, 1999
REFERRED TO FINANCE, JANUARY 25, 1999
AN ACT
1 Amending the act of June 27, 1947 (P.L.1046, No.447), entitled,
2 as amended, "An act providing for equalization of assessed
3 valuations of real property throughout the Commonwealth for
4 use in determining the amount and allocation of Commonwealth
5 subsidies to school districts; providing for the establishing
6 of a common level ratio for each county; creating a State Tax
7 Equalization Board; and prescribing its powers and duties;
8 imposing duties on certain local officers, agents, boards,
9 commissions and departments; and making an appropriation,"
10 further providing for powers and duties of the State Tax
11 Equalization Board, for monthly reports, for annual reports,
12 for certification, for adjusting valuations, for subsidies,
13 for special aid to school districts and for the common level
14 ratio.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Section 1 of the act of June 27, 1947 (P.L.1046,
18 No.447), referred to as the State Tax Equalization Board Law, is
19 amended to read:
20 Section 1. [Creation of Board.--There is hereby created an
21 independent administrative board which shall be known as the
22 State Tax Equalization Board, hereinafter referred to as the
23 board.] Short Title.--This act shall be known and may be cited
1 as the "State Tax Equalization Board Law." 2 Section 2. The act is amended by adding sections to read: 3 Section 1.1. Definitions.--The following words and phrases 4 when used in this act shall have the meanings given to them in 5 this section unless the context clearly indicates otherwise: 6 "Board." The State Tax Equalization Board. The board may 7 also be referred to as "STEB." 8 "City." Except when the term is used in section 16.1(d)(2) 9 of this act, a city that assesses real property independently of 10 the county assessment process and which is either a third class 11 city or a city which would be a city of the third class but for 12 the adoption of a home rule charter under the act of April 13, 13 1972 (P.L.184, No.62), known as the "Home Rule Charter and 14 Optional Plans Law." As used in section 16.1(d)(2), the term 15 shall mean a city of the third class which does not assess real 16 property independently of the county assessment process. 17 "Coefficient of dispersion." The measure of the accuracy of 18 assessed values to true values. The term is a measure of the 19 average assessment error around the common level ratio as last 20 determined under this act. 21 "Council." The governing body of a third class city, or the 22 legislative policymaking body in a city which would be a city of 23 the third class but for the adoption of a home rule charter 24 under the act of April 13, 1972 (P.L.184, No.62), known as the 25 "Home Rule Charter and Optional Plans Law." 26 "Real estate registry office." The office established in a 27 city of the third class under the act of June 23, 1931 (P.L.932, 28 No.317), known as "The Third Class City Code," or a like office 29 in a city which would be a city of the third class but for the 30 adoption of a home rule charter under the act of April 13, 1972 19990S0216B0211 - 2 -
1 (P.L.184, No.62), known as the "Home Rule Charter and Optional 2 Plans Law." 3 "Secretary." The Secretary of Education of the Commonwealth. 4 "STEB." The State Tax Equalization Board. STEB may also be 5 referred to as the "board." 6 Section 1.2. Creation of Board.--There is hereby created an 7 independent administrative board which shall be known as the 8 State Tax Equalization Board, hereinafter referred to as the 9 board. 10 Section 3. Section 7 of the act, amended April 6, 1949 11 (P.L.404, No.52), December 30, 1959 (P.L.2072, No.760) and 12 December 13, 1982 (P.L.1158, No.267), is amended to read: 13 Section 7. General Powers and Duties of the Board.--The 14 board shall have the power and its duties shall be-- 15 (1) To determine the market value of taxable real property 16 in each of the school districts and to conduct investigations, 17 require information and have access to whatever public records 18 are necessary in making each such determination. 19 (2) To require, in counties of the first class, the board of 20 revision of taxes of such county, [and] the county commissioners 21 of each county other than a county of the first class, and the 22 city council, to furnish to it, monthly, a list of all 23 conveyances or other transfers of real estate, or any interest 24 therein, recorded within such city or county during the 25 preceding month, stating the value of the Federal tax stamps 26 affixed to the deed for each such conveyance, and the assessed 27 valuations for city or county tax purposes of such real estate. 28 (3) To certify to the [Superintendent of Public Instruction] 29 secretary, not later than the first day of July of each odd 30 numbered year, a list of all school districts, showing the 19990S0216B0211 - 3 -
1 market value of taxable real property, and the assessed 2 valuation for county tax purposes, and to furnish to the board 3 of school directors of each school district as much of such 4 information as pertains to such school district. In even 5 numbered years, the board shall certify only those changes in 6 market values which result from properties going on or off the 7 assessment rolls for school purposes. The first lists shall be 8 furnished not later than the first day of July, one thousand 9 nine hundred forty-nine. 10 (4) To hear and decide appeals of parties who may feel 11 aggrieved by any finding or conclusion of the board. 12 (5) To investigate the finances and any other general 13 circumstances of any school district requesting special aid from 14 the [Superintendent of Public Instruction] secretary, and to 15 advise the [Superintendent of Public Instruction] secretary in 16 making grants of special aid. 17 (6) To make surveys and investigations of the finances of 18 school districts in the interest of a more equitable 19 distribution of school support. 20 (7) To subpoena State and local officials and to require 21 from them such information as may be necessary for the proper 22 discharge of its duties. 23 (8) To have and exercise all of the powers and perform all 24 the duties imposed upon independent administrative boards by the 25 Administrative Code of 1929, and its amendments. 26 (9) To establish, annually, prior to July 1, a common level 27 ratio of assessed value to market value in each city and county 28 for the prior calendar year. 29 (10) To promulgate rules and regulations necessary to 30 establish standards and procedures to govern the assessment 19990S0216B0211 - 4 -
1 process uniformly throughout this Commonwealth. 2 Section 4. Section 9 of the act, amended April 6, 1949 3 (P.L.404, No.52) and July 25, 1967 (P.L.182, No.54), is amended 4 to read: 5 Section 9. Monthly Reports by Cities and Counties; 6 Commonwealth Payments.--(a) It shall be the duty of the board 7 of revision of taxes in all counties of the first class [and 8 of], the county commissioners of each county other than a county 9 of the first class, and the city council of each city on the 10 fifteenth day of each month to prepare, certify and deliver to 11 the board for its use and in such form and manner as the board 12 may prescribe a list of all conveyances or other transfers of 13 real estate, or any interest therein, recorded within [the 14 county] its jurisdiction during the preceding month, stating the 15 value of the [Federal] tax stamps affixed to the deed for each 16 such conveyance or transfer as set forth within such instrument, 17 and the assessed valuation for [county] tax purposes of such 18 real estate. Pursuant to the requirements of this section, [the 19 recorder of deeds of each county of the first class shall 20 prepare and deliver to the board of revision of taxes of such 21 county and in all other counties the recorder of deeds of each 22 such other county shall prepare and deliver to the county 23 commissioners] at the end of each month[,] a list of all the 24 real estate so conveyed or transferred within [such county] that 25 jurisdiction during such month, stating the value of [Federal] 26 tax stamps affixed to the instrument so conveying or 27 transferring such real estate, or any interest therein[.], shall 28 be prepared and delivered to the following: 29 (1) The board of revision of taxes of a county of the first 30 class, by the recorder of deeds of that county. 19990S0216B0211 - 5 -
1 (2) The county commissioners of a county other than a county 2 of the first class, by the recorder of deeds of that county. 3 (3) The city council of a city, by the real estate registry 4 office of that city. 5 (b) The board shall pay to the board of revision of taxes of 6 counties of the first class [and], to the county commissioners 7 of each county other than a county of the first class, and to 8 the city council of each city the sum of twenty cents (20¢) for 9 each such conveyance or transfer of real estate on each list so 10 prepared, certified and delivered to the board for its use. 11 Section 5. Sections 10 and 12 of the act are amended to 12 read: 13 Section 10. Annual Reports of Local Assessing Officials.--On 14 or before the first day of June, one thousand nine hundred 15 forty-eight and on or before the first day of June of every year 16 thereafter, the board of revision of taxes of counties of the 17 first class, the board of property assessment appeals and review 18 of counties of the second class, the board for the assessment 19 and revision of taxes of counties of the third class and the 20 county commissioners of all other counties shall file a 21 certificate with the board, in such form as it may prescribe and 22 on blanks to be furnished by it, showing the assessed valuation 23 of all real property in each school district in the county on 24 which the taxes for the then current year are levied. [In the 25 year one thousand nine hundred forty-eight such certificates 26 shall be filed both with the Superintendent of Public 27 Instruction, as now required by law, and with the board as 28 required hereby. But thereafter no] No certificate shall be 29 required to be filed with the [Superintendent of Public 30 Instruction] secretary. 19990S0216B0211 - 6 -
1 Section 12. Certification to [Superintendent of Public 2 Instruction] Secretary and School Districts.--As soon as the 3 market value of the real property in each school district 4 throughout the Commonwealth has been determined and the 5 percentage of such value of the assessed valuation for county 6 tax purposes has been established, the board shall certify the 7 same to the [Superintendent of Public Instruction] secretary and 8 as to each school district to the board of school directors 9 thereof. 10 Section 6. Sections 14 and 15 of the act, amended December 11 30, 1959 (P.L.2072, No.760), are amended to read: 12 Section 14. Annual Adjustments of Valuations.--On or before 13 the first day of July, one thousand nine hundred forty-nine and 14 on or before the first day of July of each odd numbered year 15 thereafter, the board shall adjust the market value of real 16 property in each school district to conform with such new data 17 as may have been accumulated since the market values for the 18 last preceding two years were determined, and shall determine 19 the percentage of such market value of the assessed valuation of 20 all real property in the district on which county taxes for the 21 then current year are levied. Such market values, percentages 22 and adjustments shall be certified to the [Superintendent of 23 Public Instruction] secretary and the several school districts, 24 as hereinbefore provided, with the same rights to school 25 districts to hearings and determinations by the board. 26 Section 15. Determination and Apportionment of Commonwealth 27 Subsidies.--As soon as possible each odd numbered year, after 28 the final adjustment of values by the board, the board shall 29 certify to the [Superintendent of Public Instruction] secretary 30 the market value of all real property in each school district in 19990S0216B0211 - 7 -
1 the Commonwealth. Beginning with payment to be made for the 2 school year one thousand nine hundred forty-nine--one thousand 3 nine hundred fifty, each school district's assessed valuation to 4 be used for purposes of computing its standard reimbursement 5 fraction shall be the market value of the taxable real property 6 in the school district as finally adjusted and determined upon 7 by the board, and not the assessed valuation for county tax 8 purposes as now provided by law. Beginning with the year one 9 thousand nine hundred forty-nine and every two (2) years 10 thereafter, in place of the valuations now required by law to be 11 used for such purposes, the market value of the real property in 12 each school district, as finally adjusted and determined upon by 13 the board, shall be used by the [Superintendent of Public 14 Instruction] secretary in ascertaining and determining the 15 amount of funds required to meet payments to school districts 16 and vocational school districts which become due and payable by 17 law within the two fiscal years beginning June first, one 18 thousand nine hundred forty-nine and ending May thirty-first, 19 one thousand nine hundred fifty-one, and each biennium 20 thereafter, and to apportion and allot the same to and among the 21 respective school districts. 22 Section 7. Section 16 of the act is amended to read: 23 Section 16. Special Aid to School Districts.--Before 24 granting any special aid to any school district, the 25 [Superintendent of Public Instruction] secretary shall submit 26 the request therefor to the board. The board shall make its 27 recommendations with respect thereto, in so far as the same is 28 affected by the district's ability to raise funds by taxation. 29 Before making any such recommendation, the board shall carefully 30 investigate and study the financial circumstances of the 19990S0216B0211 - 8 -
1 district and whether or not it has exhausted its available 2 taxing power not only on real property, but also on all other 3 available property and subjects of taxation, and that collection 4 of such taxes is being effectively made and enforced. Such 5 recommendations shall be for the advice of the [Superintendent 6 of Public Instruction] secretary in passing on such requests. 7 Section 8. Section 16.1 of the act, added December 13, 1982 8 (P.L.1158, No.267), is amended to read: 9 Section 16.1. Establishment of a Common Level Ratio.--(a) 10 The State Tax Equalization Board shall, annually, prior to July 11 1, establish for each city and county a common level ratio for 12 the prior calendar year. 13 (b) In arriving at such ratio, the board shall use 14 statistically acceptable techniques, including sales ratio 15 studies. The board's method in arriving at the ratio shall be 16 made available to the public. The ratio shall be certified to 17 the chief assessor of each county and it shall be admissible as 18 evidence in any appeal involving real property tax assessments. 19 (c) Any political subdivision or taxpayer aggrieved by any 20 finding, conclusion or any method or technique of the board made 21 pursuant to this section may, in writing, state objections 22 thereto and may appeal de novo such ratio determination to the 23 Commonwealth Court. After receiving any objections, the board 24 may grant a hearing and may modify or adjust its findings and 25 computations as it shall appear proper. 26 (d) When a county has effected a county-wide revision of the 27 assessment which was used to develop the common level ratio last 28 determined by the board, the following applies: 29 (1) If a county changes its assessment base by applying a 30 change in established predetermined ratio, the county shall 19990S0216B0211 - 9 -
1 apply the percentage change between the existing established 2 predetermined ratio and the new established predetermined ratio 3 to the county's common level ratio to establish the certified 4 revised common level ratio for the year in which the assessment 5 was revised. 6 (2) If a third class city changes its assessment base by 7 applying a change in the city's established predetermined ratio, 8 the city shall apply the percentage to the county's common level 9 ratio to establish the certified revised common level ratio for 10 the year in which the assessment was revised. 11 (3) If the county performs a county-wide revision of 12 assessments by revaluing the properties and applying an 13 established predetermined ratio, the county shall utilize the 14 established predetermined ratio instead of the common level 15 ratio for the year in which the assessment was revised and until 16 such time as the common level ratio determined by the board 17 reflects the revaluing of properties resulting from the revision 18 of assessment. 19 (4) If a third class city which assesses property 20 independently from the county in which it is located performs a 21 city-wide revision of assessments by revaluing the properties 22 and applying the city's established predetermined ratio, the 23 city shall utilize its established predetermined ratio instead 24 of the city's common level ratio for the year in which the 25 assessment was revised and until such time as the common level 26 ratio as determined by the board reflects the revaluing of 27 properties from the revision of assessments. 28 Section 9. The act is amended by adding a section to read: 29 Section 17.1. Establishment of a Coefficient of 30 Dispersion.--The board shall annually, prior to July 1, 19990S0216B0211 - 10 -
1 establish for each county a coefficient of dispersion for the 2 prior calendar year. 3 Section 10. This act shall take effect in 60 days. L14L72SFL/19990S0216B0211 - 11 -