Title
An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, amending the Allegheny County Code of Ordinances, Division 5, Administrative Code, Article 210, entitled, “Assessment Standards and Practices”, by adding a new subsection §5-210.04A, entitled “Revision and Equalization of Base Year Market Values; Periodic Countywide Reassessments”, providing for a methodology to equalize base year values on a triennial basis and to establish a time frame for countywide reassessments.
Body
WHEREAS, Court's Council has adopted, and the Chief Executive has approved, Ordinance No. 45-05-OR which establishes a base year assessment system; and
WHEREAS, the Supreme Court of Pennsylvania has recently invalidated the County's base year assessment system; and
WHEREAS, the rationale for invalidating the base year system is the High Court's determination that it violates the Uniformity Clause of the Pennsylvania Constitution because of inevitable, significant disparities in the ratio of assessed value to fair market value and because of inevitable discrimination against owners of lower-priced properties; and
WHEREAS, the Court also invalidated the base year system because it is not coupled with a periodic reassessment requirement;
WHEREAS, County Council, by this Ordinance, is desirous of amending Ordinance No. 45-05-OR pursuant to the severability provisions set forth in Section 15 thereof so as to remedy the local defects of said Ordinance.
THE COUNCIL OF ALLEGHENY COUNTY HEREBY ENACTS AS FOLLOWS:
SECTION 1. INCORPORATION OF PREAMBLE
The provisions set forth in the Preamble of this Ordinance are incorporated by reference in their entirety herein.
SECTION 2. ADDITION OF §5-210.04A, ENTITLED “REVISION AND EQUALIZATION OF BASE YEAR MARKET VALUES; PERIODIC COUNTYWIDE REASSESSMENTS”, TO ARTICLE 210 OF THE ADMINISTRATIVE CODE.
Article 210 of the Administrative Code is amended by the addition of §5-210.04A as follows:
§5-210.04A Revision and Equalization of base year market values; periodic countywide reassessments.
A. Commencing for use in the 2009 tax year, and triennially thereafter except for a countywide reassessment, the base year market valuations shall be revised and equalized by the application of an Equalization Coefficient (“EC”) determined and applied on a municipality basis as follows:
1. The numerator of the EC shall equal 1.00 plus the percentage change in market valuation in the municipality where the object of taxation is located from the base year through the date of determination of the EC.
2. The denominator of the EC shall equal 1.00 plus the percentage change in market valuation from the base year through the EC determination date in the municipality with the highest percentage change in market valuation.
3. Expressed arithmetically:
EC = 1.00 + % change in Municipality A
1.00 + % change in Municipality B
Municipality A = the municipality where the object of taxation is located.
Municipality B = the municipality of the highest percentage change in market value.
4. The base year value of the object of taxation shall be multiplied by the EC to determine the equalized base year market value thereof, which shall be the actual value.
5. The annual Certification shall be expressed in terms of equalized base year market values such that:
AV = EC x BYV
Where AV = Actual Value
EC = Equalization Coefficiency
BYV = Base Year Value
B.
The equalized base year market values shall be subject to a determination by the Chief Assessment Officer to have met the following IAAO standards: A COD of 15 or less for the County and a PRD of between .98 and 1.03 for the County.
C. A countywide reassessment shall be conducted for use in the 2018 tax year and every fifteen (15) years thereafter.
SECTION 3. EFFECTIVE DATE
The Ordinance shall be immediately effective for implementation in the 2009 tax year.
SECTION 4. SEVERABILITY
If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of the Ordinance which shall be in full force and effect.
SECTION 5. REPEALER
Any Resolution or Ordinance or part thereof, conflicting with the provisions of this Ordinance is hereby repealed to the extent of such conflict.