PRIOR PRINTER'S NO. 3797 PRINTER'S NO. 4035
No. 2553 Session of 2006
INTRODUCED BY REICHLEY, ALLEN, ARMSTRONG, CALTAGIRONE, CRAHALLA, CREIGHTON, DALLY, DeWEESE, DIVEN, FAIRCHILD, GEORGE, GINGRICH, GOODMAN, HARRIS, HERSHEY, MACKERETH, MUSTIO, PETRONE, SCAVELLO, SIPTROTH, SONNEY, STABACK, E. Z. TAYLOR, J. TAYLOR, THOMAS, TIGUE, WILT, YUDICHAK, ZUG, HARPER, BENNINGHOFF, TURZAI, SAINATO AND SEMMEL, APRIL 3, 2006
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 2, 2006
AN ACT 1 Providing for local senior citizen property tax rent rebates. 2 The General Assembly of the Commonwealth of Pennsylvania 3 hereby enacts as follows: 4 Section 1. Short title. 5 This act shall be known and may be cited as the Local Senior 6 Citizen Property and Rent Rebate Act. 7 Section 2. Definitions. 8 The following words and phrases when used in this act shall 9 have the meanings given to them in this section unless the 10 context clearly indicates otherwise: 11 "Claimant." Any of the following who, during all or part of 12 a calendar year in which real property taxes, rent and inflation 13 costs were due and payable, file a claim for property tax rebate 14 or rent rebate in lieu of property taxes and inflation dividend: 15 (1) A person who was 65 years of age or older, or whose
1 spouse, if a member of the household, was 65 years of age or
2 older.
3 (2) A widow or widower who was 50 years of age or older.
4 (3) A permanently disabled person 18 years of age or
5 older.
6 "Department." The Department of Revenue of the Commonwealth. <--
7 "Homestead." A dwelling occupied by a claimant, whether
8 owned or rented, and as much of the land surrounding it as is
9 reasonably necessary for use of the dwelling as a home. The term
10 shall also include all of the following:
11 (1) Premises occupied by reason of ownership or lease in
12 a cooperative housing corporation.
13 (2) Mobile homes which are assessed as realty for local
14 property tax purposes and the land, if owned or rented by the
15 claimant, upon which the mobile home is situated and other
16 similar living accommodations.
17 (3) A part of a multidwelling or multipurpose building
18 and a part of the land upon which it is built.
19 (4) Premises occupied by reason of the claimant's
20 ownership or rental of a dwelling located on land owned by a
21 nonprofit incorporated association, of which the claimant is
22 a member, if the claimant is required to pay a pro rata share
23 of the property taxes levied against the association's land.
24 (5) Premises occupied by a claimant if he is required by
25 law to pay a property tax by reason of his ownership or
26 rental, including a possessory interest, in the dwelling, the
27 land or both.
28 "Household income." All income received by the claimant and
29 his spouse while residing in the homestead during the calendar
30 year for which a rebate and dividend are claimed.
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1 "Income." Except for surplus food or other relief in kind 2 supplied by a governmental agency or property tax, rent rebate 3 or inflation dividend, all income from whatever source derived, 4 including all of the following: 5 (1) Salaries, wages, bonuses and commissions. 6 (2) Income from self-employment. 7 (3) Alimony, support money, cash public assistance and 8 relief. 9 (4) The gross amount of any pensions or annuities, 10 including 50% of railroad retirement benefits. 11 (5) Fifty percent of all benefits, except Medicare 12 benefits, received under the Social Security Act (49 Stat. 13 620, 42 U.S.C. § 301 et seq.). 14 (6) All benefits received under State unemployment 15 insurance laws and veterans' disability payments. 16 (7) All interest received from the Federal or any state 17 government, or any instrumentality or political subdivision 18 thereof. 19 (8) Realized capital gains. 20 (9) Rentals. 21 (10) Workers' compensation and the gross amount of loss 22 of time, insurance benefits, life insurance benefits and 23 proceeds except the first $5,000 of the total of death 24 benefit payments. 25 (11) Gifts of cash or property, other than transfers by 26 gift between members of a household, in excess of a total 27 value of $300. 28 "Local taxing authority." A political subdivision of the 29 Commonwealth which shall include a municipality, township, 30 county or school district. 20060H2553B4035 - 3 -
1 "Owner." A person in possession under a contract of sale,
2 deed of trust, life estate, joint tenancy or tenancy in common
3 or by reason of statutes of descent and distribution.
4 "Permanently disabled person." A person who is unable to
5 engage in any substantial gainful activity by reason of any
6 medically determinable physical or mental impairment which can
7 be expected to continue indefinitely.
8 "Real property taxes." All taxes on a homestead, except for
9 municipal assessments, delinquent charges and interest, due and
10 payable during a calendar year.
11 "Rent rebate in lieu of property taxes." Twenty percent of
12 the gross amount actually paid in cash or its equivalent in any
13 calendar year to a landlord in connection with the occupancy of
14 a homestead by a claimant, irrespective of whether the amount
15 constitutes payment solely for the right of occupancy or
16 otherwise.
17 "Social Security Act." The Social Security Act (49 Stat.
18 620, 42 U.S.C. § 301 et seq.).
19 "Widow" or "widower." The surviving wife or the surviving
20 husband of a deceased individual who has not remarried.
21 SECTION 3. AUTHORITY. <--
22 A LOCAL TAXING AUTHORITY MAY ESTABLISH A LOCAL SENIOR CITIZEN
23 PROPERTY AND RENT REBATE PROGRAM IN ORDER TO CARRY OUT THE
24 PROVISIONS OF THIS ACT. NOTWITHSTANDING ANY OTHER PROVISION OF
25 THIS ACT, IF A LOCAL TAXING AUTHORITY DOES NOT ESTABLISH A LOCAL
26 SENIOR CITIZEN PROPERTY AND RENT REBATE PROGRAM IN ORDER TO
27 CARRY OUT THE PROVISIONS OF THIS ACT, NO PROPERTY TAX REBATES OR
28 RENT REBATES MAY BE GIVEN TO CLAIMANTS IN THE JURISDICTION OF
29 THE LOCAL TAXING AUTHORITY.
30 Section 3 4. Property tax and rent rebate. <--
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1 (a) Schedule.--The amount of any claim for property tax 2 rebate or rent rebate in lieu of property taxes for real 3 property taxes or rent due and payable during calendar year 2006 4 and thereafter shall be determined in accordance with the 5 following schedule: 6 Percentage of Real Property Taxes or 7 Rent Rebate in Lieu of 8 Household Income Property Taxes Allowed as Rebate 9 $0 - $4,999 100% 10 5,000 - 5,499 100 11 5,500 - 5,999 90 12 6,000 - 6,499 80 13 6,500 - 6,999 70 14 7,000 - 7,499 60 15 7,500 - 7,999 50 16 8,000 - 8,499 40 17 8,500 - 8,999 35 18 9,000 - 9,999 25 19 10,000 - 11,999 20 20 12,000 - 12,999 15 21 13,000 - 15,000 10 22 (b) Limits.--No claim shall be allowed if the amount of 23 property tax or rent rebate computed in accordance with this 24 section is less than $10. The maximum amount of property tax or 25 rent rebate payable under this section shall not exceed $500. 26 (c) Exemption.--No claim shall be allowed if the claimant is 27 a tenant of an owner of real property exempt from real property 28 taxes. 29 (d) Apportionment.--A local taxing authority shall apportion 30 the real property taxes or rent in accordance with the period or 20060H2553B4035 - 5 -
1 degree of ownership or leasehold or eligibility of the claimant 2 in determining the amount of rebate for which a claimant is 3 eligible if any of the following apply: 4 (1) A homestead is owned or rented and occupied for only 5 a portion of a year. 6 (2) A homestead is owned or rented in part by a person 7 who does not meet the qualifications for a claimant, 8 exclusive of any interest owned or leased by a claimant's 9 spouse. 10 (3) A claimant is a widow or widower who remarries. 11 (4) A claimant is a permanently disabled person who is 12 no longer disabled. 13 (e) Public assistance.--A claimant who receives public 14 assistance from the Department of Public Welfare shall not be 15 eligible for rent rebate in lieu of property taxes or an 16 inflation dividend during those months during which the claimant 17 receives public assistance. 18 (f) Rent.--Rent shall not include subsidies provided by or 19 through a governmental agency. 20 Section 4 5. Filing of claim. <-- 21 A claim for property tax or rent rebate shall be filed with 22 the local taxing authority on a date prescribed by the local 23 taxing authority for the preceding calendar year in which real 24 property taxes or rent were due and payable. Only one claimant 25 from a homestead each year shall be entitled to the property tax 26 or rent rebate and inflation dividend. If two or more persons 27 are able to meet the qualifications for a claimant, they may 28 determine who the claimant shall be. If they are unable to 29 agree, the department LOCAL TAXING AUTHORITY shall determine to <-- 30 whom the rebate is to be paid. 20060H2553B4035 - 6 -
1 Section 5 6. Proof of claim. <-- 2 (a) Inclusion with claim.--Each claim shall include 3 reasonable proof of household income, the size and nature of the 4 property claimed as a homestead and the rent or tax receipt or 5 other proof that the real property taxes on the homestead have 6 been paid, or rent in connection with the occupancy of a 7 homestead has been paid. If the claimant is a widow or widower, 8 a declaration of such status in such manner as prescribed by the 9 Secretary of Revenue LOCAL TAXING AUTHORITY shall be included. <-- 10 (b) Social Security determination.--Proof that a claimant is 11 eligible to receive disability benefits under the Social 12 Security Act shall constitute proof of disability under this 13 act. No person who has been found not to be disabled by the 14 Social Security Administration shall be granted a rebate or 15 dividend under this act. A claimant not covered under the Social 16 Security Act shall be examined by a physician designated by the 17 local taxing authority and such status determined using the same 18 standards used by the Social Security Administration. 19 (c) Time of payment.--It shall not be necessary that taxes 20 or rent were paid directly by the claimant if the rent or taxes 21 have been paid when the claim is filed. 22 (d) Age.--The first claim filed shall include proof that the 23 claimant or the claimant's spouse was 65 years of age or older 24 or 50 years of age or older in the case of a widow or widower, 25 during the calendar year in which real property taxes or rent 26 were due and payable. 27 Section 6 7. Incorrect claim. <-- 28 Whenever on audit of any claim the local taxing authority 29 finds the claim to have been incorrectly determined, it shall 30 redetermine the correct amount of the claim and notify the 20060H2553B4035 - 7 -
1 claimant of the reason of the redetermination and the amount of 2 the corrected claim. 3 Section 7 8. Funds for payment of claims. <-- 4 Approved claims shall be paid from the local taxing 5 authority's general fund. 6 Section 8 9. Petition for redetermination. <-- 7 Any claimant whose claim is either denied, corrected or 8 otherwise adversely affected by the local taxing authority may 9 file with the local taxing authority a petition for 10 redetermination on forms supplied by the local taxing authority 11 within 90 days after the date of mailing of written notice by 12 the local taxing authority of the action. It shall be the duty 13 of the local taxing authority, within six months after receiving 14 a filed petition for redetermination, to dispose of the matters 15 raised by the petition and mail notice of the local taxing 16 authority's decision to the claimant. 17 Section 19. Applicability. 18 This act shall apply to the tax year beginning January JULY <-- 19 1, 2006, and each tax year thereafter. 20 Section 20. Effective date. 21 This act shall take effect immediately. C8L72MSP/20060H2553B4035 - 8 -