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FOR IMMEDIATE RELEASE |
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State
Rep. Frank Dermody |
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Moratorium on court-ordered property tax assessments passes House
HARRISBURG, Aug. 5 – The Pennsylvania House of Representatives passed a bill today sponsored by Rep. Frank Dermody, D-Oakmont, that would impose a temporary moratorium on any court-ordered countywide property tax assessments.
Under the bill, while the moratorium is in effect, the General Assembly would conduct a comprehensive study of the state's property tax reassessment system and address the current problems with the system through enactment of legislation. The moratorium would remain in effect until the study is completed or until June 30, 2011, whichever comes first.
"Pennsylvania's current tax assessment system is fragmented with little uniformity between counties," said Dermody, chairman of the House Urban Affairs Committee. "This results in vast inequities across the Commonwealth.
"Additionally, within the current system, there are no anti-windfall provisions for municipalities after a countywide reassessment is implemented, and there is little protection for homeowners who experience sudden and dramatic increases in their assessments after a countywide reassessment. This bill seeks to change that."
Dermody said the bill was introduced in response to an April Pennsylvania Supreme Court ruling that held that Allegheny County's assessment system violated the uniformity clause of the state constitution. It further said that the same assessment system is used by other counties in the state, and that the General Assembly should adjust the state's property assessment laws to ensure their constitutionality.
"This bill is a companion to H.R. 334, adopted in June, which directs the Legislative Budget and Finance Committee to study Pennsylvania's current property tax assessment system," he said.
"The moratorium, in conjunction with this study, will give the General Assembly suitable time to study the state's current property tax assessment and reassessment systems and to enact legislation to address the deficiencies identified by the state Supreme Court."
Under the bill, the moratorium would not apply to voluntary reassessments, and counties in the middle of a court-ordered reassessment would have the option of continuing with its process.
Supported by the County Commissioners Association of Pennsylvania, as well as the counties currently involved in a court-ordered reassessment, the bill (H.B. 1661) now goes to the Senate for consideration.
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