PRINTER'S NO. 2622
No. 1903 Session of 2007
INTRODUCED BY MOYER, VULAKOVICH, NICKOL, LEVDANSKY, GEORGE,
BAKER, BARRAR, CIVERA, CREIGHTON, DALLY, J. EVANS, EVERETT,
FAIRCHILD, FLECK, GILLESPIE, GINGRICH, GODSHALL, GRUCELA,
HARHART, HARPER, HARRIS, HENNESSEY, HERSHEY, KENNEY, KESSLER,
KOTIK, MARSHALL, MARSICO, McILVAINE SMITH, MENSCH, MURT,
PEIFER, PERZEL, PETRARCA, PETRONE, QUIGLEY, REED, ROSS,
SCAVELLO, SCHRODER, SIPTROTH, STAIRS, J. TAYLOR, TURZAI,
VEREB, WATERS AND YOUNGBLOOD, OCTOBER 15, 2007
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 15, 2007
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, further providing for definitions, for
3 authority, for income eligibility, for application procedure
4 and for attachment and satisfaction of liens; and providing
5 for reimbursement to school districts.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 8572, 8573, 8574, 8576 and 8578(a) and
9 (b) of Title 53 of the Pennsylvania Consolidated Statutes are
10 amended to read:
11 § 8572. Definitions.
12 The following words and phrases when used in this subchapter
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Base payment." The amount of property tax paid by an
16 applicant in the base year.
1 "Base year." The tax year preceding the first tax year for
2 which a taxing authority implements the provisions of this
3 subchapter or the tax year immediately preceding an applicant's
4 entry into the tax deferral program.
5 "Claimant." [A person whose household income does not exceed
6 the limit provided for in section 8574 (relating to income
7 eligibility).] The term shall have the same meaning as defined
8 under section 1303 of the act of June 27, 2006 (1st Sp.Sess.,
9 P.L.1873, No.1), known as the Taxpayer Relief Act.
10 "Household income." All income as defined [in the act of
11 March 11, 1971 (P.L.104, No.3), known as the Senior Citizens
12 Rebate and Assistance Act,] under section 1303 of the act of
13 June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
14 Taxpayer Relief Act, received by the claimant and by the
15 claimant's spouse during the calendar year immediately preceding
16 the tax year for which a tax deferral is claimed.
17 "Increase in real property taxes." An increase in the
18 property taxes above the base payment resulting from a millage
19 increase, a change in the assessment ratio or method or by a
20 revaluing of all properties.
21 "Taxpayer Relief Act." The act of June 27, 2006 (1st
22 Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
23 § 8573. Authority.
24 (a) Political subdivisions.--All political subdivisions,
25 other than school districts, shall have the power and authority
26 to grant annual tax deferrals in the manner provided in this
27 subchapter.
28 (b) School districts.--All school districts shall grant
29 annual tax deferrals beginning with the first tax year
30 immediately following the effective date of this subsection.
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1 § 8574. Income eligibility.
2 A claimant shall be eligible for a tax deferral if the
3 claimant and the claimant's spouse have a household income not
4 exceeding the maximum household income eligibility limitations
5 set forth [in the act of March 11, 1971 (P.L.104, No.3), known
6 as the Senior Citizens Rebate and Assistance Act.] under section
7 1304(a)(2)(i) of the Taxpayer Relief Act.
8 § 8576. Application procedure.
9 (a) [Initial application] Application.--Any person eligible
10 for a tax deferral under this subchapter may apply annually to
11 the political subdivision. In political subdivisions other than
12 school districts, the application shall be filed by January 30
13 of the tax year for which tax deferral is sought. In school
14 districts, the application shall be filed by May 15 of the tax
15 year immediately preceding the tax year for which tax deferral
16 is sought. [In the initial year of application, the] The
17 following information shall be provided in the manner required
18 by the political subdivision:
19 (1) A statement of request for the tax deferral.
20 (2) A certification that the applicant or the applicant
21 and his or her spouse jointly are the owners in fee simple of
22 the homestead upon which the real property taxes are imposed.
23 (3) A certification that the applicant's homestead is
24 adequately insured under a homeowner's policy to the extent
25 of all outstanding liens.
26 (4) Receipts showing timely payment of the immediately
27 preceding year's nondeferred real property tax liability.
28 (5) Proof of income eligibility under section 8574
29 (relating to income eligibility).
30 (6) Any other information required by the political
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1 subdivision.
2 (a.1) Notice of applications and deadlines.--The political
3 subdivision shall provide sufficient notice to the public
4 regarding the availability of the deferral program and
5 application and the filing deadline. Applications shall be made
6 available at least 60 days before the filing deadline.
7 (a.2) Denial of application.--The political subdivision
8 shall provide to each claimant whose application is denied a
9 written notice of denial by first class mail no later than 30
10 days after the filing deadline. Failure to provide notice under
11 this subsection shall be deemed to be approval of the
12 application.
13 (a.3) Appeals to governing body.--A claimant aggrieved by an
14 application denial may appeal the denial to the governing body
15 of the political subdivision. An appeal shall be limited to the
16 issue of whether the claimant meets the eligibility requirements
17 of this subchapter.
18 (b) Subsequent years.--After the initial entry into the
19 program, a claimant shall remain eligible for tax deferral in
20 subsequent years so long as the claimant continues to meet the
21 eligibility requirements of this subchapter.
22 § 8578. Attachment and satisfaction of liens.
23 (a) Nature of lien.--[All]
24 (1) In political subdivisions other than school
25 districts, all taxes deferred under this subchapter shall
26 constitute a prior lien on the homestead of the claimant in
27 favor of the political subdivision and shall attach as of the
28 date and in the same manner as other real estate tax liens.
29 The deferred taxes shall be collected as other real estate
30 tax liens, but the deferred taxes shall be due, payable and
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1 delinquent only as provided in subsection (b).
2 (2) In school districts, all taxes deferred under this
3 subchapter shall constitute a prior lien on the homestead of
4 the claimant in favor of the Commonwealth and shall attach as
5 of the date and in the same manner as other real estate tax
6 liens. The deferred taxes shall be collected as other real
7 estate tax liens, but the deferred taxes shall be due,
8 payable and delinquent only as provided in subsection (b).
9 (b) Payment.--
10 (1) [All] Except as provided under paragraph (4), all or
11 part of the deferred taxes may at any time be paid to the
12 political subdivision.
13 (2) [In] Except as provided under paragraph (4), in the
14 event that the deferred taxes are not paid by the claimant or
15 the claimant's spouse during his or her lifetime or during
16 their continued ownership of the homestead, the deferred
17 taxes shall be paid either:
18 (i) prior to the conveyance of the homestead to any
19 third party; or
20 (ii) prior to the passing of the legal or equitable
21 title, either by will or by statute, to the heirs of the
22 claimant or the claimant's spouse.
23 (3) The surviving spouse of a claimant shall not be
24 required to pay the deferred taxes by reason of his or her
25 acquisition of the homestead due to death of the claimant as
26 long as the surviving spouse maintains his or her domicile in
27 the property. The surviving spouse may continue to
28 participate in the tax deferral program in subsequent years
29 provided he or she is eligible under the provisions of this
30 subchapter.
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1 (4) Payment of deferred taxes in a school district under
2 paragraph (1) or (2) shall be made to the Commonwealth, shall
3 be deposited in the Property Tax Relief Fund and shall be
4 calculated in the annual certification made by the Secretary
5 of the Budget under section 503 of the Taxpayer Relief Act.
6 Section 2. Title 53 is amended by adding a section to read:
7 § 8579. Reimbursement to school districts.
8 (a) Report.--By July 30, 2008, and each July 30 thereafter,
9 each school district shall report to the Secretary of the Budget
10 the aggregate amount of deferred taxes under this subchapter.
11 (b) Notice.--The Secretary of the Budget shall provide
12 notice to the State Treasurer of the aggregate amount of
13 deferred taxes in each school district in this Commonwealth by
14 August 15, 2008, and each August 15 thereafter.
15 (c) Payment.--The State Treasurer shall pay from the
16 Property Tax Relief Fund, as reimbursement, to each school
17 district an amount equal to the aggregate amount of deferred
18 taxes in the school district for the current tax year. The State
19 Treasurer shall cause the payment to be made pursuant to the
20 payment schedule provided under section 505(b) of the Taxpayer
21 Relief Act.
22 Section 3. This act shall take effect immediately, or
23 December 31, 2007, whichever is sooner.
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