Section 3. Tax moratorium.
(a) Exemption for reconstruction and repairs.--Local taxing authorities may, by ordinance or resolution, exempt from real property taxation the assessed valuation of reconstruction or repairs made to properties damaged or destroyed as the result of a natural disaster which was within any geographic area subject to a Federal emergency declaration as provided herein. The exemption shall be limited to the additional assessment valuation attributable to the actual costs of reconstruction or repairs on the damaged or destroyed property.
(b) Exemption schedule.--For the first year for which such reconstruction or repairs would otherwise be taxable, 100% of the eligible assessment shall be exempted; for the second year, 50% of the eligible assessment shall be exempted and, for the third year, 25% of the eligible assessment shall be exempted. After the third year, the exemption shall terminate. No property shall be eligible for tax exemption under this section unless reconstruction or repairs are begun within five years of the date of the applicable Federal emergency declaration.
(c) Right to appeal.--Notwithstanding any other law to the contrary, persons who have suffered catastrophic losses to their property due to the disaster emergencies covered by this act shall have the right to appeal before the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes within the remainder of the county fiscal year in which the catastrophic loss occurred, or within three months of the effective date of this act, whichever time period is longer. The duty of the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes shall be to reassess the value of the property in the following manner: the value of the property before the catastrophic loss, based on the percentage of the taxable year for which the property stood at its former value, shall be added to the value of the property after the catastrophic loss, based on the percentage of the remainder of the taxable year. Any property improvements made subsequent to the catastrophic loss in the same tax year shall not be included in the reassessment described in this subsection for that tax year. Any adjustments in the tax required pursuant to this subsection which cannot take effect for the tax year in which the loss occurs shall be reflected by the appropriate taxing authorities in the form of a credit for the first succeeding tax year in which such credit can be effectuated. As used in this section, "catastrophic loss" means any loss due to natural disaster covered by this act which affects the physical state of the real property and which exceeds 40% of the market value of the real property prior to the loss.
(d) Termination upon transfer.--The exemption from taxation authorized by this section shall terminate upon the sale or exchange of the property.
(e) Notice.--Local taxing authorities shall publish notice of property owners' rights to appeal their assessed valuations, pursuant to the assessment laws of this Commonwealth, due to the occurrence of a "catastrophic loss" and of the moratorium on taxation attributable to increases in assessed valuations due to reconstruction or repairs as required herein. The notice shall appear on at least two occasions in newspapers of general circulation within the affected areas within 60 days of the effective date of this act.
(f) Application.--This section shall apply only to property damaged or destroyed on or after January 1, 1984.
(g) Definition.--As used in this section the term "local taxing authority" means any political subdivision authorized to impose real property taxes.
(3 amended July 7, 1986, P.L.402, No.88)