Pennsylvania SB 567: An Act amending Titles 16 (Counties) and 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in fiscal affairs, further providing for operating reserve fund; providing for regular cyclical revision of assessment and for State Tax Equalization Board; and making a repeal.

Bill Text

PRINTER'S NO. 1099
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 567
Session of
2025
INTRODUCED BY FONTANA, KEARNEY, COSTA AND L. WILLIAMS,
JULY 31, 2025
REFERRED TO LOCAL GOVERNMENT, JULY 31, 2025
AN ACT
Amending Titles 16 (Counties) and 53 (Municipalities Generally)
of the Pennsylvania Consolidated Statutes, in fiscal affairs,
further providing for operating reserve fund; providing for
regular cyclical revision of assessment and for State Tax
Equalization Board; and making a repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 14984.3(c) of Title 16 of the
Pennsylvania Consolidated Statutes, added May 8, 2024 (P.L.50,
No.14), is amended to read:
§ 14984.3. Operating reserve fund.
* * *
(c) Purpose of appropriations.--The county commissioners
may, by resolution, make appropriations from the operating
reserve fund only to:
(1) meet emergencies involving the health, safety or
welfare of the residents of the county;
(2) counterbalance potential budget deficits resulting
from shortfalls in anticipated revenues or program receipts
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from any source;
(3) counterbalance potential budget deficits resulting
from increases in anticipated costs of goods or services;
[or]
(4) provide for anticipated operating expenditures
related either to the planned growth of existing projects or
programs or the establishment of new projects or programs if
for each project or program appropriations have been made and
allocated to a separate restricted account established within
the operating reserve fund[.]; or
(5) provide for the expenses related to countywide
revisions of assessment.
* * *
Section 2. Title 53 is amended by adding chapters to read:
CHAPTER 88A
REGULAR CYCLICAL REVISION OF ASSESSMENT
Sec.
88A01. Scope of chapter and applicability.
88A02. Legislative findings and purpose.
88A03. Definitions.
88A04. Regular cyclical revision of assessment.
88A05. Schedule of cyclical revision of assessment.
88A06. Funding cyclical revision of assessment.
88A07. Noncompliance.
§ 88A01. Scope of chapter and applicability.
(a) Scope.--This chapter shall apply to all counties of the
second, second A, third, fourth, fifth, sixth, seventh and
eighth classes, notwithstanding any provision of a home rule
charter to the contrary.
(b) Applicability.--
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(1) A countywide revision of assessment conducted in
accordance with this chapter shall not apply within any city
of the third class conducting an assessment as provided in 11
Pa.C.S. § 12522(a)(2) (relating to assessment powers) until
an election under 11 Pa.C.S. § 12522(a)(3) occurs.
(2) After a countywide revision of assessment conducted
in accordance with this chapter, a board of school directors
of a school district located within that county shall comply
with the limitations on tax increases applicable to a school
district subject to section 327 of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, as described in that section.
§ 88A02. Legislative findings and purpose.
The General Assembly finds and declares as follows:
(1) The Uniformity Clause of the Constitution of
Pennsylvania requires that all taxes, including property
taxes, be uniform within the territory of the taxing
jurisdiction.
(2) Political subdivisions in this Commonwealth levy
taxes on real property according to a base year assessment
that is not subject to any statutory requirement to conduct a
countywide revision of assessment on a recurrent regular or
needs basis.
(3) The Supreme Court of Pennsylvania has held that the
base year system of taxation has been rendered
unconstitutional as applied where the prolonged and
potentially indefinite use of an outdated base year
assessment becomes stale, and thus violates the Uniformity
Clause.
(4) The Supreme Court determined that Pennsylvania is
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the only state in the United States that allows the
indefinite use of a base year by statute.
(5) Numerous Pennsylvania courts, having found that an
in-use base year assessment was unconstitutional as applied,
have repeatedly ordered counties to conduct countywide
revisions of assessment.
(6) The Supreme Court has articulated that the General
Assembly is the appropriate place to fashion a more
comprehensive and soundly constitutional scheme.
(7) Counties can facilitate a more uniform system of
taxation on property by performing regular countywide
revisions of assessment on all property on a regular and
recurrent basis.
§ 88A03. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Coefficient of dispersion." The average deviation from the
median, mean or weighted mean