*1 Accordingly, the order
affirming the order of Board which community of interest
found an identifiable manag- concluding cafeteria supervisors
ers are not under PERA
affirmed.
ORDER th 2000, NOW, day May, this
AND order of the Court of Common Pleas 98-454, No.
Perry County docket dated 8, 1999, affirming the order of the
July
Pennsylvania Labor af Relations
firmed.
E.L.C.A. DEVELOPMENT CORPORA-
TION and
Association, Appellants,
v.
LACKAWANNA COUNTY BOARD
OF APPEALS ASSESSMENT County.
and Lackawanna of Pennsylvania.
Commonwealth Court 12,
Argued April May
Decided
467 (Lackawanna 2 County map Parcel tax 21304-010-003), no. sixty acres used for cross-country skiing; 22001-010-011), (map 3 Parcel no. area; greenbelt 22002-010-006), (map no. Parcel used field; as a primarily and ball 22702-060-001), (map Parcel 5 no. re- construction; served future for (map 22004-020-001), Parcel 8 no. in- station; pool cludes a and comfort (map 22002-010-001), Parcel no. cludes comfort station and shower area. The owns Parcel 2; Community Association owns the parcels. remaining five County When Lackawanna Dunn, John B. Stroudsburg, appel- for for the Assessment and Revision of Tax- lants. es their appeals, denied assessment Taxpayers appealed to the court of com- Scanlon, Scranton, James M. appel- for parcels mon pleas, alleging that the were lees. exempt separate from assessment taxation either “common facilities” or DOYLE, Before President Judge, and “planned “controlled facilities” within a COLINS, J., McGINLEY, J., SMITH, J., evidence, community.” After taking PELLEGRINI, J., FRIEDMAN, J., and parcels court concluded that the six LEADBETTER, J. were “convertible real estate” and/or “withdrawable estate” and therefore COLINS, Judge. separately could be assessed and taxed E.L.C.A. Corporation and appeal under Act. On Common- (col- Eagle Lake Court, wealth Taxpayers argue that lectively, Taxpayers) appeal 1) order concluding the trial court erred in the Court of Common Pleas of Lackawan- parcels in question were convertible na ruling that six or withdrawable real estate under 2) estate located in Eagle Lake Commu- Act concluding assess- nity exempt were as- taxation ment and was val- sessment and taxation as either controlled County taxing authority id when the facilities or common facilities within failed to its record into enter assessment meaning of the Uniform Planned Commu- The Taxpayers argue evidence. that the (Act), nity §§ 68 Pa.C.S. 5101-5414. are common area or controlled fa- cilities, which not be as- The Taxpayers received taxed; County argues sessed and assessments each of that the are or with- subject parcels year for the 1998 tax drawable estate and therefore subsequent years. Of ten taxed. assessed and originally appeal- assessments were Planned Defined ed, present the six involved are, to paraphrase opinion, applies the trial to all communi- court’s The Act as follows: within the af- ties created Commonwealth recording declaration executed
ter date. 68 Pa.C.S. its effective conveyed 5102(a). persons will be whose interests § to unit owners. 68 before the effective was created Only selected sections date of Act. argument its As retroactively to communities or convert- question are withdrawable *3 date of the created before' effective estate, argues that ible section, Act,1 “but including definitions planned communi- is a Eagle Lake flexible only respect to sections with those position, argues support In of its ty. occurring and after events circumstances parcel parcel 60-acre subpart of this and do the effective date prelimi- Corporation, was specific provisions contained not invalidate and that narily approved for a subdivision declaration, existing of the provisions be annexed any property could planned bylaws plats plans or and of those addi- community and within which to 5102(b). § communities.” 68 Pa.C.S. It argues created. units could be tional re- parcels originally designated as community” “planned defines community plat on of the served areas pertinent part as any purpose, similarly be used for respect per- which a Real estate with to including units. son, by ownership virtue of of an inter- Separate Titles and Taxation estate, or portion of the real is est covenant, obligated by may become and for titles provides The Act agreement imposed on the or easement communities. planned taxation pay any amount for owner’s interest unit,3 cre- together Each with the interests taxes, insurance, mainte- declaration, including the by the ated nance, manage- repair improvement, constitutes rights ment, of regulation administration or estate, separate parcel of real and a estate other than of unit includes all such conveyance of the portion solely or interest owned rights to common facilities. interests and person. 5105(a). sepa- § Each unit is 68 Pa.C.S. and its value distinguishes rately taxed assessed § 68 5103. The Pa.C.S. the unit’s interest as one includes the value of planned community” a “flexible facilities, excluding convert- or the common “containing withdrawable convertible estate[2] Pa. real estate. 68 community to or withdrawable planned or a ible 5105(b). § may “[N]o be added C.S. which additional real estate sepa- and no shall be attributed to 68 Pa.C.S. value or a combination thereof.” imposed against be community § A rate shall planned created 5103. por- ap- real estate” refers only following "[a] 2. 1.Specifically, sections "Convertible community not within a of flexible planned tion a retroactively pre-existing com- ply building containing which addi- (definitions), a within (separate 5105 5103 munities: units, or lim- taxation), limited common facilities tional (applicability of lo- 5106 titles or combination ordinances, controlled facilities building ited regulations, and cal § 5103. may be created.” 68 Pa.C.S. (eminent domain), (con- thereof codes), 5203 5107 "real estate” refers to "Withdrawable real by- validity of declaration struction laws), withdrawn from flexible estate that units), (ease- (description of 5218 5204 § community.” 68 5103. planned Pa.C.S. completion, of conversion ment facilitate declaration), (amendment expansion), 5219 planned portion (merger "physical or consolidation of 5223 A “unit” refers to (11) (15) 5302(a)(l)-(6), sepa- community), (power community planned designated for — association), (tort por- ownership occupancy or ... and unit owners’ 5311 rate assessments), (lien designated by decla- liability), tion of which contract 5315 records), (resales (association 68 part of controlled facilities.” 5407 as ration 5316 (effect units), rights § Lake Communi- Pa.C.S. 5103. In of violations 5412 action). 5102(b). campsite. ty, a lot or § a unit is 68 Pa.C.S. insured, facilities Pa. regulated, managed, facilities.” 68 and con- 5105(b)(1). §C.S. with- Convertible and Association. Ott, separately- president general drawable real estate must be James H. man- Association, ager assessed and taxed until such it is testi- time as area, longer parcel largely no fied that the forest withdrawable. (with 5105(b)(2). improved cross-country skiing § Pa.C.S. trails), maintained, pa- insured and The Act defines “common facilities” security purposes by trolled for the Com- “[a]ny real estate within a commu- (Notes munity Testimony nity which is owned association 56-59.) pp. The record indicates that this leased to the association. The term does is used as common area. not include a unit.” *4 The Taxpayer’s Declaration reject County’s of Restrictions argument We the P-1) (Declaration, and that Covenants Exhibit the are convertible or with- defines “common areas” as all drawable real estate that at “any and time plat as sold or annexed and to designated such on a used create and all units. property acquired acquired by Once the by the Asso- Association, Community ... improvements origi ciation with all which thereon, nally as designated be at reserved areas or oth time constructed areas; 2, to, parcel erwise became common including, Roads, by but Utility not limited its Facilities, being virtue of and maintained con community recreational and fa- ” cilities, Community the Association be parks.... lakes and The came a facility. controlled The fact that defines “controlled facilities” Community the estate, Association members “whether or not a of a could at some time in the future to that is not a vote facility, but is main- tained, estate, sell common area real un improved, however repaired, replaced, regu- lated, likely, does not mean that such estate managed, insured or controlled is convertible or Similarly, the withdrawable. association.” 68 Pa.C.S. the fact that the The record indicates that all the of could at some time the decide future to subject parcels, except the parcel 60-acre develop parcel sell or it and remove from 2, conveyed were the Eagle Com community the use of members does not (Exhibit P-12) munity Association and are mean that it is convertible or withdrawable maintained Community the Association. real estate. Under the terms of the definition of com view, In our the of con- classifications declaration, mon area in community’s the and vertible withdrawable real estate can- parcels, these regardless designa of their apply not to real estate that has been community plat, tion are common to common by conveyance converted area areas, and therefore the Act them excludes Association to real separate assessment and taxation. Development Corpo- estate owned largest parcel, parcel 2, ration, maintained, was improved, but conveyed to the E.L.C.A. Development sured by Association and (Exhibit P-11). Corporation It is not made available for common use of the common area desig Having because was not so members. reviewed record law, nated and it is because not applicable this case and the we must by, leased acquired subject nor was it by, conclude that to this Association. Under the terms are excluded from assess- Act, however, par of the we Applying conclude that ment and taxation. Sections facility Act, cel is it is of because 5102 and 5105 communities, facility real estate other than a pre-existing planned and re- maintained, improved, is repaired, ferring specific provisions to the contained land is all forest existing provisions community’s green, of the clean bylaws, Development Corporation owns which the Act did area. The declaration invalidate, parcel in that same area which con- one we conclude that generally of land used as a sists 60 acres parcels in are either common ar- question cross-county ski area. or controlled areas and not eas was taxed Each If the future assessable or taxable. year developed with additional sold units limited common or controlled and/or Develop- Both -the Association and Corporation appealed ment assess- it. separately assess and tax County Board ments to the Lackawanna Accordingly, order of Taxes for the Assessment Revision reversed, Taxpayers are entitled (Board) ex- arguing that the were paid on the six a refund amounts empt either controlled they because were year. for the 1998 tax meaning facilities within the or common which no
ORDER de- imposed.2 The Board value could appeals nied NOW, day May AND this 26th *5 Development Corporation appeals filed the order of the Court of Common Pleas Pleas of Lacka- with the Common Court above-cap in the County Lackawanna (trial court). County The trial wanna County tioned matter is reversed. The the finding affirmed court paid directed to refund the taxes the six Development parcel was Corporation’s appeal the 1998 parcels subject to this real estate convertible withdrawable year. up it was set to be subdivided
because PELLEGRINI, J., dissenting. be annexed to the Asso- could at parcels adjacent contiguous, ciation’s other majori- from the respectfully I dissent Similarly, vicinity in the this land. or ty’s the trial court and reversing decision trial that all of Associ- court found parcels by concluding that five owned convertible and ation’s were both (Asso- Eagle Lake Association and, therefore, real estate withdrawable ciation) by Eagle and the one owned they eventually be taxable because Development Lake Association additional units. subdivided create (Development Corporation), a Corporation wholly-owned subsidiary of the Associa- Court, majority On this tion, exempt are assessment rejecting argu- reverses by under and taxation because definition are convertible ment that Community Act the Uniform Planned can sold real be withdrawable estate (Act),1they and withdrawa- are convertible any time because “the classifications subject real to taxation. ble estate real estate convertible withdrawable been apply to estate that has five cannot real
The Association owns by conveyance area to common in Lackawanna located converted Community. Association par- The five Corpo- by Development a estate owned cels include land that is described as maintained, ration, improved, and but greenbelt area near the entrance to by Community Association a re- sured development improvements, with no use of the available for the common a primarily served area used for made majority further states field, con- members.” ball a reserved area for future developed struction, any parcel if is sold or undeveloped land described as 19, 1996, §§ 2. 68 Pa.C.S. 5101-5414. of December P.L. 1. Act § 5103. Pa.C.S. future, units, may separately be limited com- assessed within additional
and taxed at that I time. dissent from the mon facilities or limited controlled facilities majority’s regardless decision because may be creat- combination thereof currently being whether the are ed. area, definition,
used as un- Here, all of the because Act, they der the are withdrawable and and the and, therefore, taxable. and, subdivided be there- 5105(b)(1) Pursuant to fore, units, they are may create (2), no value can im- convertible real estate and tax- posed against common facilities or con- Additionally, they able. because are also only against but convert- reserved areas that allow ible or withdrawable estate. 68 Pa. Corporation and the Association to use the 5105(b)(1) (2). § C.S. A fa- “common choose, manner they enabling land cility” is defined real estate within a them to withdraw the from the planned community which is owned planned community, are they withdrawable Association or leased to the Association. estate and also taxable. A “controlled facility” defined as Accordingly, I dissent and would affirm planned community, estate with a the trial court. a part whether or not of a that is maintained, facility but is im- proved, repaired, replaced, regulated, joins. Judge LEADBETTER managed, insured as-
sociation. “Withdrawable real estate” is
defined as -real estate that
withdrawn from flexible commu-
nity. “Convertible real estate” is defined portion
as a aof flexible communi-
ty a building not within containing a unit