Taxation of Coal Lands as Applied in Pennsylvania

LOCAL yearly taxes levied on bituminous coal lands in Pennsylvania have become a cost of first importance to the coal industry of the State. In Pennsylvania there is no State tax on real estate, but local taxation of real estate furnishes the greater part of the revenue necessary for the small governmental unit, as counties, townships, boroughs, and local school, road, and poor districts. Coal in place in the ground, whether or not title thereto has been severed from ownership of the surface, is assessed as real estate and on its supposed sale or market value. There are eight classes of counties in Pennsylvania, based on population; in populous counties of the first, second and third class, assessments are made by a county board appointed by the county commissioners and are fairly uniform throughout the county. In counties of the fourth to the eighth classes inclusive, property assessments are made by property assessors elected by and for each township within a county. In these counties the board of county commissioners acts as a board of equalization and review to hear appeals. In most counties, therefore, where there is a large unmined reserve of coal, assessments on that coal vary for each township, irrespective of the fact that the coal bed is continuous under many townships.