Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3946.19. In-lieu-of-tax payments

(a) Whenever an acquisition by the Commonwealth under this act reduces the taxable base within a political subdivision or school district, the officers of such political subdivision or school district, authorized by law to levy taxes, shall immediately after such acquisition request the State Tax Equalization Board to determine, and the State Tax Equalization Board upon receipt of such request shall determine and certify, to the Auditor General and the Secretary of Forests and Waters, the prior market value of the acquired property and the prior market value of the remaining taxable real estate base. For the purposes of this section, the market value of specified property for any one year shall be ascertained by multiplying its assessed value for that year by the ratio of the aggregate market value to the aggregate assessed value of all taxable real estate located in the political subdivision or school district. The prior market values required to be determined shall mean market values ascertained on the basis of the most recent certification of the State Tax Equalization Board prior to acquisition.

(b) Beginning with the fiscal year during which a political subdivision or school district requests certification of the prior market values in accordance with subsection (a) of this section, or beginning with the fiscal year starting July 1, 1965, whichever is later, and ending with the fiscal year in which the acquired land is put to use as a public facility, such political subdivision or school district shall receive an annual in-lieu-of-tax payment calculated by multiplying the total real estate taxes levied by such political subdivision or school district for the current fiscal year, by the quotient of the certified prior market value of the acquired property, divided by the sum of the certified prior market value of the acquired property plus the certified prior market value of the remaining taxable real estate base. If for any fiscal year following the fiscal year during which an acquired property is put to use as a public facility, the current market value of the remaining taxable real estate base is less than the sum of the certified prior market value of the acquired property, plus the certified prior market value of the remaining taxable real estate base, such political subdivision or school district shall receive for such fiscal year an in-lieu-of-tax payment calculated by multiplying the total real estate taxes levied by such political subdivision or school district for the current fiscal year, by the quotient of the sum of the certified prior market value of the acquired property, plus the certified prior market value of the remaining taxable real estate base, less the current market value of the remaining taxable real estate divided by the current market value of the remaining taxable real estate base: Provided, That such payment shall not exceed the product obtained by multiplying the total real estate taxes levied by such political subdivision or school district for the current fiscal year, by the quotient of the certified prior market value of the acquired property divided by the sum of the certified prior market value of the acquired property plus the certified prior market value of the remaining taxable real estate base. The payments so determined shall be paid by the State Treasurer on the Audit and warrant of the Auditor General on the requisition of the Secretary of Forests and Waters.

(c) When payments by the Commonwealth cease as provided for in subsection (b) above, in-lieu-of-tax payments shall be made to political subdivisions or school districts for land acquired by the Commonwealth under this act in the manner provided by applicable provisions of law for State forest lands.