61 Pa. Code § 151.5 - Release of corporation tax liens

(a) When the corporate tax debtor or another interested party requests a release from the lien of corporate taxes on all or part of the tax debtor's real property, the following mathematical formula shall be used in establishing the release consideration:

(1) The assessed market valuation of the real property to be released will constitute the numerator of the fraction.

(2) The assessed market valuation of the tax debtor's real property within this Commonwealth, including the real property to be released, will constitute the denominator of the fraction.

(3) The fraction will then be multiplied by the amount of the tax debit and the resulting figure will be the release consideration.

(b) Assessed market valuation is the value of the real property as assigned by the county assessment bureau prior to the application of the formula to arrive at the assessed tax valuation. In clarification, it is noted that the assessment bureau in one county may establish that a particular piece of real property lying therein has a value of $10,000 and will assess taxes on 25% of that value whereas another county may establish that a particular piece of real property lying therein has the same value but will assess taxes on 50% of that value; the use of the assessed market valuation will therefore result in a more uniform fraction in those instances where the tax debtor has real property in more than one county.

Example: John Doe desires to purchase a piece of the tax debtor's real property in Schuylkill County; the assessed market valuation which is taxed at 25%, is $10,000. The balance of the tax debtor's real property in this Commonwealth lies in Dauphin County and has an assessed market valuation of $10,000, the same to be taxed at 50%. The tax debit as of the date of the proposed sale is $750. The formula therefore will be expressed as follows: $10,000/$20,000 X $750 = $375 (the release consideration).

(c) The party seeking the release shall provide the county assessment bureau with the assessed market valuation from the county wherein the real property is located. In the event county records are unavailable to establish the fraction, the party seeking the release may use the privately appraised market value of the real property to be released as the numerator over the privately appraised market value of the tax debtor's real property within this Commonwealth as the denominator; when using this alternate method of establishing the fraction, the party seeking the release shall support the appraised market valuations with the written opinions of licensed realtors in the county wherein the real property is located. A third alternative and one which will be used only where the above described methods of establishing the real consideration are impossible or unduly burdensome, is to use corporate acquisition costs or corporate records, or both.

(d) For purposes of this section, the tax debit as of the date of the transfer or proposed transfer will be the controlling multiplicand figure. Before the county assessment bureau will submit a proposed release for approval by the Secretary, the Auditor General and the Attorney General, the party seeking the release shall provide the county assessment bureau with a check in the amount of the release consideration payable to the Department along with a legal description of the real property to be released.

(e) In those rare instances where the value of the real property to be released is less than the proportionate share of the taxes due, the Department with the approval of the Auditor General and the Attorney General, may reduce the release consideration as the equities of the situation dictate.

(f) Upon approval of the release by the Secretary, the Auditor General and the Attorney General, the party requesting the release will be provided by the county assessment bureau with a certificate showing the real property released. This certificate may then, at the discretion of the party released, be filed in the office of the recorder of deeds in the county wherein the real property is located.

Notes

61 Pa. Code § 151.5

The provisions of this § 151.5 adopted February 13, 1976, effective 2/14/1976, 6 Pa.B. 327; amended July 22, 1977, effective 7/23/1977, 7 Pa.B. 2069.