PUBLIC UTILITY REALTY TAX ACT - REPEALED — 1970 Pa. Act 66 (historical enacted text)

Historical Act text

SENATE REPRINT
PRIOR PRINTER'S NOS. 1768. 2667
Printer's No. 2790
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE
Ho. 1412
BILL
INTRODUCED BY MR. IRVIS, JULY 1q, 1969
Session of
1969
SENATOR WOOD, FINANCE, IN SENATE, RE~REPORTED AS AMENDED,
FEBRUARY 25, 1970
AN ACT
1 -±-lapasiaq a real preperty tax ea the fair market valQe ef real <--
2 preperty ef sertaia fQblis Qtilities.
3 IMPOSING A SPECIAL TAX UPON REALTY OF PUBLIC UTILITIES; <--
4 PROVIDING FOR DISTRIBUTION OF MONEYS TO LOCAL TAXING
5 AUTHORITIES IN LIEU OF LOCAL REAL ESTATE TAXES; CONFERRING
6 POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE,
7 LOCAL ASSESSING AND OTHER OFFICIALS, AND PUBLIC UTILITIES;
8 AND PROVIDING PENALTIES.
9 The General Assembly of the commonwealth of Pennsylvania
10 hereby enacts as follows:
11 geetien 1. Befinitiens. (a) The fellewinq weras, terms ana <--
12 phrases shall have the fellewiaq meaaiB§S
1
aaless the seatext
13 iaQiea~es e~fteEwise1
15 (2) Fair market valee meaae net less thaa eae half ef the
16 eriqiaal eest ef pealis Qtility real preperty as aefiaea ia this
17 -ast.-,-repertea as ef the thirty first aay ef Beeemaer ef the year
18 preeeaia§ that ia whish the tax impesea by this ast is QQe aaa
19 payable.
20 (3) Pehlie etility meaas aay aemestie er fereiqa persea,
21 oorpoEa~iea e£ par~aeEship
1
assoaia~iea er o~Ber 1e§al er

~--------~------
1 somme£sial entity suejest to £equlation as a puelie utility ey
2 the Pennsylvaaia Puelie Gtility Coll!-l!l4ssioa OE any othe£
3 soEEespondinq £equlato£y eommission 0£ offiseE of any otheE
4 state of the Gaited States OE uadeE any FedeEal law, eut sash
5 teEm shall not inelude a munisipality OE a muaieipal autho£i1;.y-w-
6
7
('I)
(i)
Beal pEopeEty meaas and iaeludesJ
All land, aeove aad undeE wateE
1
ineludiaq tEees aad
8 unde£§Eowth theEeon aad mines, miaeEals
1
guaEEies aad fossils ia
9 aaa uade£ the same,
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(ii) Baildiaqs and otheE aEtieles aaa stEuetu£es
1
suestrustuLes and supeEstEustu£es eEested upon, andeE OE aeove
the land, OE affixed theEeto, iaelading bEidqes and 11haEves aad
pieEs aad the value of the Eiqht to sollest whaEfaqe
1
GEanage oE
doskaqe theEeoa.
(iii) SuEfase, uadeE§Eouad OE elevated Eai1Eoads
1
and
EailEoad stEuetu£es
1
substEus.tuEes aad sup~E-Euet-oEes, tEaeks
and the metal theEeoa
1
h£anehes
1
switehes and otheE fixtuEes
peEmitted OE authorised to be made, laid or plaeed ia
1
upoa,
aeove OE uadeE any puelie OE pEivate stEeet 0£ plaee1
(iv) Kaias
1
pipes, ea8le
1
eoaduits, aeeesseEies 0£ etheE
pEopeEty plaeed uadeE aay laad whetheE publis OE-f>~ate, foE
the tEaasmission, soaduetia§ OE distiibutiaq of steam, heat,
wateE,.-e.il
1
eleetEisity eE aay pEopeEty
1
suestaaee oE pEodust
sapable of traaspoEtatiea or eoaveyaaee theEeia.
(w) Boilers, peweE p£edustiea e§uipmeat of all types,
pampiag e§aipmeat of all types, gatherinq e§aipmeat, elewateEs,
ventilatiaq OE qeneEatiag appaEatus OE any etheE type of
e§uipment used ia the pEeduetion, tEansmission, eenduetiag OE
distributinq of heat, liqht
1
pewer, qases
1
li§Uids er any ether
S<Histanee er produet provided the e§Uipment enumerated herein
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ff" el whether permaaeatly
. •e the real
er etherv1se, t
. , sueQ a maRaer
estate 1a ~ ,
£ea
elily he remeveel
eaBBat -
the£ef£sm, vitheat sahstaatial elama9e
e£ iBja£y ta the real
e£ the e~aipmeBt itself,
(vi) Wells ef all types aB anel
nlaBts aBeler esBstraetieB
thereef, atility r
eGflstraetieB nahlie at-i±ity ase,
ll
-6tlteJ~E-a~,ft<jt-J~Si'e:~f-lh~e~lldel-4:f~eHr;-;f~aQt-\!ta~£~e>--J~~~~~==
Bell
e13e£atia9 1'£
9
pe£ty · eel
There is heresy 111fl'9S
a tax
Impesitie11 sf Tax.
seetieB 2.
197
g aeel eaeh ealeBela£
mills fer the ealeBela£ year
ef thi£ty fair ma£ket valae ef
h el lla£ ef the year the£eafter,
t-he-£eal preperty sf a
a130B ease ~
shall he pai ..
.
+"l"ty vhieh tax
13ael1s a t1 1 '
f
Reve>Bae apeB a
the Bepa£tmeBt e State Treasarer threa9h
ta the 11er
time a11el iB the maB p£eseriheel hy it at the
retarB
hereiaafter !'£evielee1,
PaymeBt ef Tax.
4!
~~S:e~e~t~:
1
·~a~a-e4
3
~·~ .... e--e4;.....;,a.sh~~~..-aa11a~el,-Jf~e~r~t~~he~1':1i:£:1':e:s~e~e~f
Jaae ef eash year,
f 1
.£st elay af h elat• ef the
· t shall ll9 t e '
the ameaBt ef the same, 1
._ f e the
•av shall he paiel ~e 9£
The t K
asse£taiB::1·:a:9~~~~-f>l'&J~E'-&f~~ar--e.£--t.l.e--&a4"~e1~n~a~h~l~
1
~·~
6
:a:t~i~l~i~tt~Y~t,.,a
. · £fiser af the sa1 r
e-ther preper e..,
~£€a5'ite£ er ea er hefere -the
Be
artme11t ef Reveaae,
fif-teeath elay ef AF
1
prepe£ty pahlis
. . f the a111eaBt ef rea
~-~L ~r a£f1rma-t1eB,
9
-~-"ear,
~.....,...._~~ -~· a sale.......,r ,
A • a the p£eee .. 1B~
fl· State, -=tllEl:B=-
"+1· lit" ',JithiB t '1S f
~t , thirty 'fi£st ela"f e
market valae as e'f the aael its fair
Besemlle£,
S
i>;;id;J,-li>e-e-6tl'5-l~<le-el--Bt,-t,--4;..e-ap>p;ll"f'-~"t~ee-~
111
~a~B~i~e~i~l':a:~li:-t:i~e~ss-~e=£
he eeBst£aeel Bet ts app Y
•This as1'-shall a tax a13sa the real
h "ties aBel shall Bet im13sse
thei£ aat e£1 ' . ,
perse11al preperty ef aB"f
iiliBieipalit¥ er aa-therit}
evneel er
fa£aishea
pahlie atili-ty er
-
1
· -ty se£vise
frem aay pahlis a-t1 1
er aa-the£ity the£eef,
B"f any maaieipality
seatiea 'I.
Effeetive Bate. as
+ shall take effes-t
This __ .,,
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1 immeaiately aaa shall impese the tax Eate feE the twelve meath
2 salenaaE peEiea he~iaaiB§ JaaaaEy 1, 197Q aaa feE eaeh saleaaaE
3 yeaE theEeafteEw
4 SECTION 1. SHORT TITLE.--THIS ACT SHALL BE KNOWN AND MAY BE
5 CITED AS THE "PUBLIC UTILITY REALTY TAX ACT."
6 SECTION 2. DEFINITIONS.--AS USED IN THIS ACT
7 (A) "DEPARTMENT" !!EANS THE DEPARTMENT OF REVENUE OF THE
8 COMMONWEALTH OF PENNSYLVANIA.
9 (B) "PUBLIC UTILITY" MEANS ANY PERSON, PARTNERSHIP,
10 ASSOCIATION, CORPORATION OR OTHER ENTITY FURNISHING PUBLIC
11 UTILITY SERVICE UNDER THE JURISDICTION OF THE PENNSYLVANIA
12 PUBLIC UTILITY COMMISSION OR THE CORRESPONDING REGULATORY AGENCY
13 OF ANY OTHER STATE OR OF THE UNITED STATES; AND ANY ELECTRIC
14 COOPERATIVE CORPORATION, MUNICIPALITY OR MUNICIPALITY AUTHORITY
15 FURNISHING PUBLIC UTILITY SERVICE.
16 (C) "UTILITY REALTY" !!EANS ALL LANDS, BUILDINGS, TOWERS,
17 SMOKESTACKS AND OTHER STRUCTURES, LOCATED WITHIN THIS
18 COl!l!ONWEALTH AND OWNED BY A PUBLIC UTILITY EITHER DIRECTLY OR BY
19 OR THROUGH A SUBSIDIARY, WHICH ARE USED OR ARE IN THE COURSE OF
20 DEVELOPMENT OR CONSTRUCTION FOR USE, IN THE FURNISHING,
21 INCLUDING PRODUCING, STORING, DISTRIBUTING OR TRANSfORTING, OF
22 PUBLIC UTILITY SERVICE; BUT SHALL NOT INCLUDE (I) EASEMENTS OR
23 SIMILAR INTERESTS, (II) RAILROAD RIGHTS-OF-WAY AND
24 SUPERSTRUCTURES THEREON, (III) MACHINERY, EQUIPMENT, POLE,
25 TRANSMISSION TOWER, PIPE, RAIL OR OTHER LINES, WHETHER OR NOT
26 ATTACHED TO SUCH LANDS, BUILDINGS, TOWERS, SMOKESTACKS OR OTHER
27 STRUCTURES, AND (IV) SUCH REALTY AS IS SUBJECT TO LOCAL REAL
28 ESTATE TAXATION UNDER ANY LAW IN EFFECT ON APRIL 23, 1968.
29 (DJ "STATE TAXABLE VALUE" !!EANS THE COST OF UTILITY REALTY,
30 LESS RESERVES FOR DEPRECIATION AND DEPLETION, AS SHOWN BY THE
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1 BOOKS OF ACCOUNT OF A PUBLIC UTILITY; PROVIDED THAT FOR ANY
2 PUBLIC UTILITY WHICH WAS NOT REQUIRED TO RECORD ANNUAL
3 DE~RECIATION ON ITS UTILITY REALTY PRIOR TO ENACTHENT OF SECTION
4 503 OF THE PUBLIC UTILITY LAW, THE DEPRECIATION DEDUCTION
5 PRESCRIBED IN THIS DEFINITION SHALL BE THE BOOK RESERVE OR FIFTY
6 PER CENT OF THE BOOK COST, WHICHEVER IS GREATER.
7 (E)
"LOCAL TAXING AUTHORITY" HEANS A COUNTY, CITY, BOROUGH,
8 TOWN, TOWNSHIP OR SCHOOL DISTRICT HAVING AUTHORITY TO IHPOSE
9 TAXES ON REAL ESTATE.
10 (F) "REALTY TAX EQUIVALENT" MEANS THE TOTAL AMOUNT OF TAXES
11 WHICH A LOCAL TAXING AUTHORITY COULD HAVE IMPOSED ON UTILITY
12 REALTY BUT FOR THIS ACT, AND UNLESS OTHERWISE PROVIDED SHALL BE
13 THE PRODUCT OF THE REAL ESTATE PROPERTY TAX RATE AND THE
14 ASSESSED VALUATION OF UTILITY REALTY.
15 (G) "TOTAL TAX RECEIPTS" MEANS THE ACTUAL AMOUNT COLLECTED
16 BY A LOCAL TAXING AUTHORITY UNDER ALL STATUTES AUTHORIZING THE
17 IMPOSITION OF TAXES, BUT SHALL NOT INCLUDE FINES, PENALTIES,
18 FEES, LICENSES OR RECEIPTS FROM ANY SOURCE OTHER THAN TAXES.
19 SECTION 3. IMPOSITION OF TAX; REPORT; INTEREST AND
20 PENALTIES.--(!) ON OR BEFORE THE FIRST DAY OF JUNE OF 1970 AND
21 OF EACH YBAR THEREAFTER, EVERY PUBLIC UTILITY SHALL 2AY TO THE
22 STATE TREASURER, THROUGH THE DEPARTMENT OF REVENUE, A TAX AT THE
23 RATE OF THIRTY MILLS UPON EACH DOLLAR OF THE STATE TAXABLE VALUE
24 OF ITS UTILITY REALTY AT TtlE END OF THE PRECEDING CALENDAR YEAR.
25 (B) EACH SUCH PAYMENT SHALL BE ACCOMPANIED BY A REPORT, UPON
26 OATH OF THE OWNER OR RESPONSIBLE OFFICER OF THE PUBLIC UTILITY,
27 SHOWING THE AMOUNT AND HANNER OF COMPUTATION OF THE STATE
28 TAXABLE VALUE UPON WHICH SUCH PAYMENT IS BASED.
29 (C) PAYMENT OF THE TAX HEREBY IMPOSED MAY BE ENFORCED BY ANY
30 MEANS PROVIDED BY LAW FOR THE ENFORCEMENT OF PAYMENT OF TAXES TO
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1 THE STATE. IF THE TAX HEREBY IMPOSED IS NOT PAID BY THE DATE
2 HEREIN PRESCRIBED, OR WITHIN ANY EXTENSION GRANTED BY THE
3 DEPARTMENT, THE UNPAID TAX SHALL BEAR INTEREST AT THE RATE OF
4 ONE PER CENT PER MONTH, AND SHALL IN ADDITION BE SUBJECT TO A
5
PENALTY OF FIVE PER CENT OF THE AMOUNT OF THE TAX, WHICH PENALTY
6 HAY BE WAIVED OR ABATED, IN WHOLE OR IN PART, BY THE DEPARTMENT
7 UNLESS THE PUBLIC UTILITY HAS ACTED IN BAD FAITH, NEGLIGENTLY,
8 OR WITH INTENT TO DEFRAUD.
'
9 SECTION 4. EFFECT OF PAYMENT; ADDITIONAL ASSESSMENT.--(A)
10 PAYMENT OF THE TAX IMPOSED BY'SECTION 3, AND THE DISTRIBUTION TO
'
11 LOCAL TAXING AUTHORITIES PRESCRIBED BY SECTION 7, SHALL BE IN
12 LIEU OF LOCAL TAXES UPON UTILITY REALTY, AS CONTEMPLATED BY
13 ARTICLE VlII, SECTION 4, OF THE CONSTITUTION OF PENNSYLVANIA.
14 (B) IF IN ANY CALENDAR YEAR THE AMOUNT DETERMINED BY THE
15 DEPARTMENT PURSUANT TO SECTION 7 (A) (2J SHALL EXCEED THE TOTAL
16 AMOUNT OF TAX COLLECTED PURSUANT TO SECTION 3 (A), THE
17 DEPARTMENT SHALL DETERMINE THE RATIO WHICH THE AMOUNT OF SUCH
18 EXCESS BEARS TO THE TOTAL STATE TAXABLE VALUE OF ALL UTILITY
19 REALTY REPORTED TO IT PURSUANT TO SECTION 3 (BJ. THE DEPARTMENT
20 SHALL NOTIFY EACH REPORTING PUBLIC UTILITY OF SUCH RATIO, AND IT
21 SHALL BE THE DUTY OF SUCH PUBLIC UTILITY, NITHIN FORTY-FIVE DAYS
22 THEREAFTER, TO PAY TO THE STATE TREASURER, THROUGH THE
23 DEPARTMENT OF REVENUE, AN ADDITIONAL AMOUNT OF TAX EQUAL TO THE
24 PRODUCT OF (1J SUCH RATIO AND (2J THE STATE TAXABLE VALUE SHOWN
25 IN ITS REPORT REQUIRED BY SECTION 3 (BJ. THE PROVISIONS OF
26 SECTION 3 (CJ SHALL BE APPLICABLE TO SUCH ADDITIONAL AMOUNT OF
27 TAX.
28 SECTION 5. LOCAL ASSESSMENT OF UTILITY REALTY; INITIAL
29 ASSESSMENT; PROCEDURE AND APPEALS.--(AJ IT SHALL BE THE DUTY OF
30 THE SEVERAL ELECTED AND APPOINTED ASSESSORS OF BEAL PROPERTY TO
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1 ASSESS AND VALUE ALL UTILITY REALTY IN THE SAME MANNER AS IS
2 PROVIDED BY LAW FOR THE ASSESSMENT AND VALUATION OF REAL ESTATE.
3 (B)
SUCH UTILITY REALTY SHALL BE INITIALLY ASSESSED ON OR
4 BEFORE OCTOBER 1, 1970 OR WITHIN TWO MONTHS AFTER THE EFFECTIVE
5
DATE OF THIS ACT, WHICHEVER IS LATER, AND THEREAFTER SHALL BE
6 ASSESSED OR REASSESSED AT THE SAME TIME AND IN THE SAME MANNER
7 AS REAL ESTATE.
8 (C) A
PUBLIC UTILITY MAY APPEAL FROM THE ASSESSMENT OF ITS
9 UTILITY REALTY, INCLUDING THE INITIAL ASSESSMENT, IN THE MANNER
' '
10 PROVIDED BY LAW FOR APPEALS FROM ASSESSMENT OF REAL.ESTATE. IF
11 APPEALS ARE PENDING AT THE TIME A LOCAL TAXING AUTHORITY
12 PREPARES ITS REPORT FOR SUBMISSION TO THE DEPARTMENT AS
13 PRESCRIBED BY SECTION 6, THE REPORT SHALL INCLUDE AS THE
14 ASSESSMENT FOR THE UTILITY REALTY APPEALED THE AMOUNT WHICH THE
15 PUBLIC UTILITY HAS STIPULATED OR ALLEGED AS THE PROPER
16 ASSESSMENT.
17 SECTION 6. REPORTS BY LOCAL TAXING AUTHORITIES.--(A) ON OR
18 BEFORE THE FIRST DAY OF APRIL OF 1971 AND OF EACH YEAR
19 THEREAFTER, EACH LOCAL TAXING AUTHORITY SHALL SUBMIT TO THE
20 DEPARTMENT:
21 (1) THE NAME AND ADDRESS OF EACH PUBLIC UTILITY OWNING
22 UTILITY REALTY WITHIN ITS JURISDICTION, AND THE ASSESSED VALUE
23 OF SUCH UTILITY REALTY.
24 (2) ITS REAL ESTATE TAX RATE FOR ITS CURRENT FISCAL YEAR.
25 (3) THE REALTY TAX EQUIVALENT, WHICH IS THE ASSESSED VALUE
26 OF CLAUSE (1) MULTIPLIED BY THE TAX RATE OF CLAUSE t2J.
27 (4) ITS TOTAL TAX RECEIPTS FOR ITS LAST COMPLETED FISCAL
28 YEAR.
29 (5) ANY ADJUSTMENT TO THE ASSESSED VALUES, TAX RATES,·REALTY
30 TAX EQUIVALENTS OR TOTAL TAX RECEIPTS PREVIOUSLY REPORTED
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1 PURSUANT TO CLAUSES (1) TO (4).
2 (B) IF A LOCAL TAXING AUTHORITY SHALL FAIL TO FILE THE
'
3 REPORT REQUIRED BY SUBSECTION (A), BY THE DATE THEREIN
4 PRESCRIBED,
OR WITHIN ANY EXTENSION GRANTED BY THE DEPARTMENT,
5 IT SHALL FORFEIT ITS RIGHT TO SHARE IN THE NEXT-ENSUING
6 DISTRIBU'fION MADE PURSUANT TO SECTION 7.
7 SECTION 7. DISTRIBUTION TO LOCAL TAXING AUTHORITIES.--(A)
8 FROM THE REPORTS RECEIVED BY IT IN EACH YEAR PURSUANT TO SECTION
9 6, THE DEPARTMENT SHALL DETERMINE:
10 (1) THE TOTAL TAX RECEIPTS SHOWN IN ALL SUCH REPORTS.
11 (2) THE TOTAL REALTY TAX EQUIVALENT SHOWN IN ALL SUCH
12 REPORTS.
13 (B) ON OR BEFORE THE FIRST DAY OF OCTOBER OF 1971 AND OF
14 EACH YEAR THEREAFTER, THE DEPARTMENT SHALL DISTRIBUTE TO EACH
15 REPORTING LOCAL TAXING AUTHORITY ITS SHARE OF THE TOTAL REALTY
16 TAX EQUIVALENT DETERMINED PURSUANT TO SUBSECTION (A) (2), WHICH
17 SHARE SHALL BE THE RATIO WHICH THE TOTAL TAX RECEIPTS REPORTED
18 BY THAT LOCAL TAXING AUTHORITY BEAR TO THE TOTAL TAX RECEIPTS
19 DETERMINED PURSUANT TO SUBSECTION (A) (1) •
20 (C) FOR THE PURPOSE OF MAKING SUCH PAYMENT, THE DEPARTMENT
21 SHALL MAKE REQUISITION THEREFOR IN THE MANNER PRESCRIBED BY THE
22 FISCAL CODE.
23 SECTION 8. LEGISLATIVE INTENT.--IT IS THE LEGISLATIVE INTENT
24 THlT THE TAX IMPOSED BY THIS ACT SHALL BE IN ADDITION TO ANY TAX
25 NOll OR HEREAFTER IMPOSED UPOll THE GROSS RECEIPTS OF PUBLIC
26 UTILITIES UNDER THE ACT OF JUNE 1, 1889 (P.L.420), AND THIS ACT
27 SHALL NOT BE CONSTRUED IN ANY MANNER AS TO CONSTITUTE A
28 REPLACEMENT FOR OR A REPEALER OF THE ABOVE CITED ACT.
29 SECTION 9. EFFECTIVE DATE.--THIS ACT SHALL TAKE EFFECT
30 IMMEDIATELY.
B6L56RC
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