Logan, 032331 PAAGO, AGO 6

• Case Date: March 23, 1931
• Court: Pennsylvania

Honorable Edward B. Logan, AGO 6 Opinion No. 6 Pennsylvania Attorney General Opinions Opinion of the Attorney General March 23, 1931          School Districts—Third and Fourth Class—Borrowing Capacity—Assessed Valuation—Occupation Tax—Act 0/ J921., P. L. 508.          Since the passage of the Act of 1921, P. L. 508, occupations have not been taxable for school purposes in school districts of the third and fourth classes.          The assessed value of occupations may not be included in the total assessed valuation upon which the borrowing capacity of school districts of third and fourth class school districts is determined.          Honorable Edward B. Logan, Budget Secretary, Harrisburg, Pennsylvania.          Sir: We have your request to be advised whether occupations may lawfully be included as property in determining the total assessed valuation upon which depends the borrowing capacities of school districts of the third and fourth classes.          By Section 506 of the Act of April 11, 1929, P. L. 497, school directors are Authorized to create and incur indebtedness, or increase indebtedness, and issue bonds there for, subject to the limitation that the total indebtedness shall not exceed seven per centum (7%) "upon the assessed value of the taxable property for school purposes therein.''          The question, therefore, is whether occupations are taxable property for school purposes, in school districts of the third and fourth classes.          Section 540 of the School Code of 1911, P. L. 309, provided that in all school districts of the third and fourth classes, the school taxes should be levied and assessed "upon all the property upon which the county taxes are levied and assessed." The section was amended by the Act of April 26, 1923, P. L. 102. The amendment provided that in districts of the third class which are coextensive with cities of the third class, the school taxes should be levied and assessed on "the real estate and personal property therein as contained in the assessment made for city tax purposes." No change was made from the original provisions of the section in regard to other school districts of the third class, or districts of the fourth class.          Cities of the third class and counties may tax occupations: Act of April 29, 1844, P. L. 486, Section 32; Act of May 13, 1925, P. L. 649.          Section 541 of the School Code of 1911 provided that:          "In order to enable the board of school...