PRINTER'S NO. 1620
No. 1311 Session of 2003
INTRODUCED BY WHEATLEY, MAY 5, 2003
REFERRED TO COMMITTEE ON FINANCE, MAY 5, 2003
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for property tax relief rebates.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XXIX-C
17 PROPERTY TAX RELIEF REBATE ACT
18 Section 2901-C. Short title.
19 This article shall be known and may be cited as the Property
20 Tax Relief Rebate Act.
21 Section 2902-C. Definitions.
1 The following words, terms and phrases, when used in this
2 article, shall have the meanings ascribed to them in this
3 section, except where the context clearly indicates a different
4 meaning:
5 "Assessor." The chief assessor of a county, the equivalent
6 position in a home rule county or the equivalent position in a
7 city of the third class that performs its own assessments of
8 real property.
9 "Department." The Department of Revenue of the Commonwealth
10 or its designee.
11 "Farmstead." All buildings and structures on a farm not less
12 than ten contiguous acres in area located in this Commonwealth
13 that are used primarily to produce or store any farm product
14 produced on the farm for purposes of commercial agricultural
15 production, to house or confine any animal raised or maintained
16 on the farm for the purpose of commercial agricultural
17 production, to store any agricultural supply to be used on the
18 farm in commercial agricultural production or to store any
19 machinery or equipment used on the farm in commercial
20 agricultural production. This term shall only apply to farms
21 used as the principal residence and domicile of an owner.
22 "Farmstead exclusion." A tax exclusion applied to lower the
23 assessed value of a farmstead pursuant to section 2(b)(i) of
24 Article VIII of the Constitution of Pennsylvania.
25 "Homestead." A dwelling located in this Commonwealth, the
26 parcel of land on which the dwelling is located and the other
27 improvements located on the parcel, other than any improvements
28 included in a farmstead, for which any of the following apply:
29 (1) The dwelling is primarily used as the principal
30 residence and domicile of an owner who is a natural person.
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1 The homestead for real property qualifying under this
2 paragraph shall not include the land on which the dwelling is
3 located if the land is not owned by a person who owns the
4 dwelling.
5 (2) The dwelling is a unit in a condominium as the term
6 is defined in 68 Pa.C.S. § 3103 (relating to definitions) and
7 the unit is primarily used as the principal residence and
8 domicile of a natural person who is an owner of the unit or
9 the dwelling is a unit in a cooperative as the term is
10 defined in 68 Pa.C.S. § 4103 (relating to definitions) and
11 the unit is primarily used as the principal residence and
12 domicile of a natural person who is an owner of the unit. The
13 homestead for a unit in a condominium or a cooperative shall
14 be limited to the assessed value of the unit, which shall be
15 determined in a manner consistent with the assessment of real
16 property taxes on those units under 68 Pa.C.S. (relating to
17 real and personal property) or as otherwise provided by law.
18 If the unit is not separately assessed for real property
19 taxes, the homestead shall be a pro rata share of the real
20 property.
21 (3) The dwelling does not qualify under paragraphs (1)
22 or (2) and a portion of the dwelling is used as the principal
23 residence and domicile of an owner who is a natural person.
24 The homestead for real property qualifying under this
25 paragraph shall be the portion of the real property that is
26 equal to the portion of the dwelling that is used as the
27 principal residence and domicile of an owner.
28 "Homestead exclusion." A tax exclusion applied to lower the
29 assessed value of a homestead pursuant to section 2(b)(vi) of
30 Article VIII of the Constitution of Pennsylvania.
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1 "Owner." Any owner of a homestead or farmstead who is:
2 (1) a natural person domiciled in this Commonwealth;
3 (2) a grantor who has placed the homestead or farmstead
4 in a revocable trust, provided that the grantor is a natural
5 person domiciled in this Commonwealth; or
6 (3) a partner of a family farm partnership or a
7 shareholder of a family farm corporation as the terms are
8 defined in section 1101-C, provided that the partner or
9 shareholder is a natural person domiciled in this
10 Commonwealth.
11 "Real property tax." The total real property tax imposed by
12 a school district on a homestead or farmstead for the tax year.
13 The term does not include payments made in lieu of taxes or any
14 penalties or interest paid in connection with the tax.
15 "Rebate." For each school district, the maximum amount of
16 the rebate shall be the amount available to the school district
17 pursuant to section 2502.41 of the act of March 10, 1949
18 (P.L.30, No.14), known as the Public School Code of 1949, less
19 the amount paid to the school district by the Commonwealth
20 pursuant to section 2502.40 of the Public School Code of 1949,
21 divided by the number of homesteads and farmsteads in the school
22 district. The amount of rebate payable to an owner shall not
23 exceed the real property tax paid on the assessed value of the
24 homestead or farmstead to the school district for the tax year.
25 "School district." A school district of the first class A,
26 second class, third class or fourth class, including any
27 independent school district.
28 "Tax year." The school district's fiscal year 2003-2004 or
29 calendar year 2003 during which real property tax is due and
30 payable.
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1 Section 2903-C. Rebate qualifications.
2 (a) Issuance of rebates.--Subject to section 2904-C, a
3 rebate shall be issued on account of school real property taxes
4 for a homestead or farmstead if all of the following apply:
5 (1) The owner occupied the homestead during the tax year
6 or owned the farmstead, if applicable, during the tax year.
7 (2) The owner has paid school district taxes on real
8 property owed on the homestead or farmstead for the tax year.
9 (3) The owner is the owner of record as of July 1, 2003.
10 (4) The owner applies for a rebate in the manner
11 prescribed by the department.
12 (5) The owner has paid by December 31, 2003, the school
13 district taxes for the tax year associated with the 2003-2004
14 school year and any overdue real estate taxes in full.
15 (b) Number of rebates.--No owner shall be eligible to
16 receive more than one rebate.
17 (c) Names on rebates.--If title to a homestead or farmstead
18 is held by more than one individual, a rebate shall be issued in
19 the names appearing on the county property tax record.
20 Section 2904-C. Rebate administration.
21 (a) Procedures.--Except as provided in subsection (e), the
22 department shall establish any administrative and application
23 procedures and deadlines necessary to implement and administer
24 this article. To facilitate the timely implementation of this
25 article, the provisions of Article III, Pt. X and Article VII
26 of the act of April 9, 1929 (P.L.343, No.176), known as The
27 Fiscal Code, shall not apply to the transfer of application
28 information to the school district and county assessor. The
29 department may enter into any contracts which are necessary to
30 administer this article.
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1 (b) List of residential and farm real property and owners of
2 record.--Every assessor shall submit to the department by August
3 1, 2003, a list, categorized by school district, of all
4 residential and farm real property and owners of record as of
5 July 1, 2003, within its jurisdiction.
6 (c) Mailing.--The department shall mail rebate applications
7 to owners by August 31, 2003.
8 (d) Amount.--The amount of the rebate for each school
9 district shall be calculated by the Department of Education. The
10 amounts of the rebates shall be certified by September 30, 2003,
11 and shall be forwarded to the Secretary of Revenue.
12 (e) Deadline for filing of application.--An owner must file
13 the rebate application with the department by October 31, 2003.
14 The department is authorized to prescribe rules for applying for
15 the rebate by various methods.
16 (f) List of all owners who have not paid their school
17 district or other real property taxes.--Every assessor shall
18 submit to the department by January 15, 2004, a list of all
19 owners who have not paid their school district real property
20 taxes associated with the 2003-2004 school year or have other
21 outstanding real property taxes as of December 31, 2003.
22 (g) Determination of eligibility and mailing of rebates.--
23 The department shall determine which owners are eligible for a
24 rebate and shall mail the rebates to eligible owners by March
25 31, 2004.
26 (h) Denial.--If the department determines an owner is not
27 eligible for a rebate, the department shall notify the owner of
28 the denial and the reason for denial under section 2903-C.
29 Section 2905-C. Petitions for review.
30 An owner whose rebate is either denied, corrected or
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1 otherwise adversely affected by either the department or the
2 assessor 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.
8 Section 2906-C. Penalties.
9 (a) Improper receipt of rebate.--Any owner who receives a
10 rebate through false or misleading information or who otherwise
11 improperly receives a rebate may be required to do the
12 following:
13 (1) refund to the department the amount of rebate
14 received;
15 (2) pay a civil penalty of $100 to the department; or
16 (3) both paragraphs (1) and (2).
17 (b) Offset.--The department may offset any rebate due to an
18 owner against collectible liabilities owed to the Commonwealth
19 by the owner for any taxes collected by the department.
20 Section 2907-C. Erroneous rebates.
21 (a) Redetermination of rebates.--If the department
22 determines or finds a rebate to have been incorrectly or
23 erroneously paid, it shall redetermine the correct amount of the
24 rebate, if any, and notify the homeowner of the reason for the
25 correction and the amount of the rebate.
26 (b) Recovery of rebates.--If a rebate has been issued in
27 error and the owner fails to refund the rebate upon the
28 department's request, the rebate shall be recoverable by the
29 department in the same manner as assessments as provided for in
30 the act of March 11, 1971 (P.L.104, No.3), known as the Senior
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1 Citizens Rebate and Assistance Act.
2 Section 2908-C. Construction.
3 Notwithstanding any other provision of law to the contrary,
4 any property tax rebate received under this article shall not be
5 considered "income" under Article III or for purposes of
6 determining eligibility for any State government program,
7 including, but not limited to, those programs authorized by the
8 act of March 11, 1971 (P.L.104, No.3), known as the Senior
9 Citizens Rebate and Assistance Act, or Chapter 5 of the act of
10 August 26, 1971 (P.L.351, No.91), known as the State Lottery
11 Law. However, the amount of property tax eligible for any rebate
12 for 2003 property taxes under the Senior Citizens Rebate and
13 Assistance Act shall be reduced by the amount of any rebate
14 provided pursuant to this article.
15 Section 2909-C. Effect of application for rebate.
16 The department shall provide a list to each county and each
17 school district of the owners who applied for a rebate by March
18 1, 2004. Each school district shall provide owners who have
19 applied for a rebate pursuant to this article with a homestead
20 exclusion or a farmstead exclusion, as the case may be,
21 beginning in 2004.
22 Section 2910-C. Expiration.
23 This article shall expire on June 30, 2004.
24 Section 2. This act shall take effect immediately.
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