Section 5020-402 - Valuation of property(a) It shall be the duty of the several elected and appointed assessors, and, in townships of the first class, of the assessors, assistant township assessors and assistant triennial assessors, to rate and value all objects of taxation, whether for county, city, township, town, school, institution district, poor or borough purposes, according to the actual value thereof, and at such rates and prices for which the same would separately bona fide sell. In arriving at actual value the county may utilize either the current market value or it may adopt a base year market value. In arriving at such value the price at which any property may actually have been sold either in the base year or in the current taxable year, shall be considered but shall not be controlling. Instead such selling price, estimated or actual, shall be subject to revision by increase or decrease to accomplish equalization with other similar property within the taxing district. In arriving at the actual value, all three methods, namely, cost (reproduction or replacement, as applicable, less depreciation and all forms of obsolescence), comparable sales and income approaches, must be considered in conjunction with one another. Except in counties of the first class, no political subdivision shall levy real estate taxes on a county-wide revised assessment of real property until it has been completed for the entire county.(a.1) The board of county commissioners shall establish and determine, after proper notice has been given, an established predetermined ratio of assessed value to actual value which may not exceed one hundred per centum (100%) of actual value. The commissioners, acting as a board of revision of taxes, or board for the assessment and revision of taxes shall apply the established predetermined ratio to the actual value of all real property to formulate the assessment roll.(b)(1) Except as to counties of the first and second class, after any county makes a county-wide revision of assessment of real property at values based upon an established predetermined ratio as required by law or after any county changes its established predetermined ratio, each political subdivision, which hereafter for the first time levies its real estate taxes on that revised assessment or valuation, shall, for the first year, reduce its tax rate, if necessary, for the purpose of having the total amount of taxes levied for that year against the real properties contained in the duplicate for the preceding year, equal, in the case of any taxing district, the total amount it levied on such properties the preceding year, notwithstanding the increased valuations of such properties under the revised assessment. The tax rate shall be fixed at a figure which will accomplish this purpose.(2) After establishing a tax rate under clause (1), a political subdivision may, by a separate and specific vote, establish a final tax rate for the first year it levies its real estate taxes on a revised assessment or valuation. The tax rate under this clause shall be fixed at a figure which limits the total amount of taxes levied for that year against the real properties contained in the duplicate for the preceding year to not more than ten per centum greater than the total amount it levied on such properties the preceding year, notwithstanding the increased valuations of such properties under the revised assessment.(3) For the purpose of determining the total amount of taxes to be levied for said first year under clauses (1) and (2), the amount to be levied on newly constructed buildings or structures or on increased valuations based on new improvements made to existing houses need not be considered.(4) With the approval of the court of common pleas, upon good cause shown, any such political subdivision may increase the tax rate herein prescribed, notwithstanding the provisions of this subsection.(c)(1) In arriving at the actual value of real property, the impact of applicable rent restrictions, affordability requirements or any other related restrictions prescribed by any Federal or State programs shall be considered.(2) Federal or State income tax credits with respect to property shall not be considered real property or income attributable to real property.(3) This subsection shall apply in all counties and other political subdivisions in this Commonwealth.1933, May 22, P.L. 853, art. IV, § 402. Amended 1939, May 16, P.L. 143, §1; 1975 , Dec. 3, P.L. 466, No. 134, § 1, imd. effective; 1976 , June 24, P.L. 422, No. 100, § 1, imd. effective; 1982, Dec. 13, P.L. 1160, No. 268, § 2, imd. effective; 2003, Dec. 2, P.L. 227, No. 39, § 1, imd. effective; 2004, July 15, P.L. 746, No. 91, §1, effective 9/13/2004.