PRINTER'S NO. 429
No. 365 Session of 2003
INTRODUCED BY BOYES, SAINATO, ALLEN, FEESE, BAKER, BARD, BARRAR,
BEBKO-JONES, BELARDI, BENNINGHOFF, BROWNE, CAPPELLI, CAWLEY,
CLYMER, CORRIGAN, COSTA, COY, CRUZ, CURRY, DAILEY, DeLUCA,
J. EVANS, FICHTER, FORCIER, GABIG, GANNON, GEORGE, GRUCELA,
HARHAI, HARHART, HARRIS, HENNESSEY, HERMAN, HERSHEY, HORSEY,
HUTCHINSON, JOSEPHS, LAUGHLIN, LEDERER, LEH, LEVDANSKY,
LEWIS, MARSICO, McCALL, McILHINNEY, McNAUGHTON, S. MILLER,
NICKOL, PETRARCA, PIPPY, RAYMOND, READSHAW, ROBERTS, RUBLEY,
RUFFING, SATHER, SCAVELLO, SCRIMENTI, SEMMEL, SHANER,
SOLOBAY, STABACK, TANGRETTI, E. Z. TAYLOR, TRUE, TURZAI,
WATSON, WEBER, YUDICHAK, HANNA AND WASHINGTON,
FEBRUARY 24, 2003
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 2003
AN ACT
1 Authorizing payment for school property tax increases to certain
2 claimants who occupied homesteads; and providing for the
3 powers and duties of the Department of Revenue.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Pennsylvania
8 School Property Tax Freeze Act.
9 Section 2. Legislative intent.
10 The General Assembly finds and declares as follows:
11 (1) The General Assembly, in recognition of the powers
12 contained in section 2(b)(ii) of Article VIII of the
13 Constitution of Pennsylvania which provides for the
1 establishing as a class or classes of subjects of taxation
2 the property or privileges of persons who, because of
3 poverty, are determined to be in need of special tax
4 provisions, hereby declares as its legislative intent and
5 purpose to implement such power under such Constitutional
6 provision by establishing special tax provisions as provided
7 in this act.
8 (2) The General Assembly, in recognition of the
9 requirements of section 2(b)(ii) of Article VIII of the
10 Constitution of Pennsylvania relating to special provisions
11 for the real property tax, hereby declares its intention that
12 provisions of this act provide an administratively efficient
13 means for the Commonwealth to absorb the cost of real estate
14 tax increases for the class of persons designated by this
15 act.
16 (3) The General Assembly having determined that there
17 are persons within this Commonwealth whose incomes are such
18 that imposition of school property tax increases would
19 deprive them and their dependents of the bare necessities of
20 life and having further determined that poverty is a relative
21 concept inextricably joined with actual income and the number
22 of people dependent upon such income deems it to be a matter
23 of public policy to provide special tax provisions for that
24 class of persons designated in this act to relieve their
25 economic burden.
26 (4) Any claimant who meets the standards of eligibility
27 established by this act shall be deemed a separate class of
28 subject of taxation and, as such, shall be entitled to the
29 benefit of the special provisions of this act.
30 Section 3. Definitions.
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1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Base year." The taxable year of a claimant immediately
5 preceding the taxable year for which a claim for special tax
6 provisions under this act is made or the taxable year of the
7 claimant immediately preceding the first taxable year in a
8 series of consecutive taxable years in which the claimant
9 qualified for a payment on account of school property tax
10 increases under this act, whichever is earlier.
11 "Claimant." A homeowner who is an eligible claimant for
12 special tax provisions under Article III of the act of March 4,
13 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
14 regardless of whether the homeowner had income subject to tax
15 under Article III of the Tax Reform Code of 1971.
16 "Department." The Department of Revenue of the Commonwealth.
17 "Homeowner." An owner of a homestead who is:
18 (1) an individual domiciled in this Commonwealth;
19 (2) a grantor who has placed real property in a
20 revocable trust and who is an individual domiciled in this
21 Commonwealth; or
22 (3) a partner of a family farm partnership or a
23 shareholder of a family farm corporation as the terms are
24 defined in section 1101-C of the act of March 4, 1971 (P.L.6,
25 No.2), known as the Tax Reform Code of 1971, and who is a
26 natural person domiciled in this Commonwealth.
27 "Homestead." The owner-occupied, primary residence and the
28 parcel of land within this Commonwealth on which the residence
29 is located and other improvements located on the parcel. If a
30 portion of such residence is used for a nonresidential purpose,
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1 the term means that portion of the property used as the primary
2 residence of the owner-occupant.
3 "Residence." A structure used as a place of habitation by
4 the owner of the structure.
5 "School district." A school district of the first class,
6 first class A, second class, third class or fourth class and an
7 independent school district.
8 "School property tax." The total real property tax levied by
9 a school district on a homestead of a claimant in a taxable
10 year. Real property tax levied by a city of the first class
11 shall constitute taxes levied by a school district for the
12 purposes of this definition to the extent that the city of the
13 first class allocates such property tax revenue to a school
14 district of the first class. The term does not include payments
15 made in lieu of taxes or any penalties or interest paid in
16 connection with the tax.
17 "School property tax increase." The difference between the
18 school property tax levied in the taxable year and the school
19 property tax levied in the base year for a claimant, but not
20 less than zero, multiplied by the percentage of tax forgiveness
21 computed for the claimant under section 304 of the act of March
22 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
23 computed after the application of any locally authorized
24 credits, exemptions, exclusions or special provisions.
25 "Taxable year." This term shall have the same meaning given
26 it in Article III of the act of March 4, 1971 (P.L.6, No.2),
27 known as the Tax Reform Code of 1971.
28 Section 4. Payment for school property tax increases.
29 (a) General rule.--A payment equal to the value of the
30 school property tax increase shall be issued to a claimant on
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1 account of such increases for a homestead if all of the
2 following apply:
3 (1) The claimant occupied the homestead during the
4 entire taxable year.
5 (2) The claimant occupied the same homestead during the
6 entire taxable year that the claimant occupied in the base
7 year.
8 (3) The claimant paid school real property tax levied on
9 the homestead during the taxable year in an amount equal to
10 or greater than the amount of the school property tax
11 increase.
12 (4) The claimant applies in a form and time prescribed
13 by the department.
14 (b) Limitation.--The payment on account of school property
15 tax increases may not exceed $500 for any taxable year for a
16 homestead.
17 (c) Multiple claimants for same homestead.--If two or more
18 claimants residing at any homestead meet the qualification for a
19 payment under this act, they may determine among themselves who
20 shall receive the payment. If they are unable to agree, the
21 department shall determine to whom the payment is to apply.
22 Section 5. Administration and regulations.
23 The department shall administer this act and shall promulgate
24 any regulations necessary for its implementation. To the extent
25 possible, the department shall administer the provisions of this
26 act in conjunction with its administration of the special tax
27 provisions provided under Article III of the act of March 4,
28 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
29 Section 6. Petitions for review.
30 A homeowner whose claim for payment under this act is either
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1 denied, corrected or otherwise adversely affected by the
2 department may petition for administrative review in the manner
3 prescribed by the department. An individual aggrieved by the
4 department's action in connection with the administrative review
5 may petition for review in the manner specified in sections 11.1
6 and 11.2 of the act of March 11, 1971 (P.L.104, No.3), known as
7 the Senior Citizens Rebate and Assistance Act. Neither the
8 administrative review process nor the petition for review
9 provided for in this section shall apply to any determination
10 regarding special tax provisions under Article III of the act of
11 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
12 1971.
13 Section 7. Applicability.
14 This act shall apply to claims for payment under this act for
15 the taxable year beginning after December 31, 2002, and to each
16 taxable year thereafter.
17 Section 8. Effective date.
18 This act shall take effect immediately.
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