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                                                      PRINTER'S NO. 4027

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2899 Session of 1998


        INTRODUCED BY BOSCOLA, CORPORA, BARD, ADOLPH, READSHAW, KAISER,
           WOJNAROSKI, YEWCIC, BELARDI, LEDERER, THOMAS, SHANER,
           ROBERTS, LAUGHLIN, JOSEPHS, OLASZ, BARRAR, YOUNGBLOOD,
           HARHAI, STABACK, SERAFINI, HENNESSEY, CAWLEY, COY,
           C. WILLIAMS AND DeLUCA, OCTOBER 20, 1998

        REFERRED TO COMMITTEE ON FINANCE, OCTOBER 20, 1998

                                     AN ACT

     1  Allowing senior citizens to claim an exemption from tax
     2     increases as to certain real property.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Senior
     7  Citizens' Property Tax Freeze Act.
     8  Section 2.  Exemption from property tax increases.
     9     No political subdivision which imposes a real property tax on
    10  residential property shall increase the tax or the tax rate on
    11  the real property of an individual if all of the following
    12  apply:
    13         (1)  The individual is 65 years of age or older.
    14         (2)  The individual currently resides on the property as
    15     to which the exemption is claimed and has resided thereon for
    16     at least five consecutive years immediately prior to claiming


     1     the exemption.
     2         (3)  Neither the individual nor any other person with
     3     whom the individual owns the property by joint tenancy,
     4     tenancy in common or tenancy by the entireties is currently
     5     claiming or otherwise receiving an exemption under this
     6     section as to other property located in this Commonwealth.
     7         (4)  The individual's income, as defined in the act of
     8     March 11, 1971 (P.L.104, No.3), known as the Senior Citizens
     9     Rebate and Assistance Act, is not more than $65,000.
    10  Section 3.  Application for exemption.
    11     The exemption allowed by section 2 may be claimed by filing
    12  with the political subdivision which imposes the tax a notarized
    13  statement containing all of the following:
    14         (1)  The applicant's name, residential address and Social
    15     Security number.
    16         (2)  A certification that the individual is 65 years of
    17     age or older, currently resides on the property as to which
    18     the exemption is claimed and has resided thereon for at least
    19     five consecutive years immediately prior to claiming the
    20     exemption.
    21         (3)  The names and Social Security numbers of all other
    22     owners of the property as to which the exemption is claimed.
    23         (4)  A certification that no taxes are in arrears as to
    24     the property.
    25         (5)  Evidence that the individual's income does not
    26     exceed $65,000.
    27  Section 4.  Termination of exemption.
    28     (a)  General rule.--Except as provided in subsection (b), the
    29  exemption allowed by section 2 shall be terminated and the tax
    30  and tax rate shall become current upon sale or transfer of the
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     1  property as to which the exemption is in effect, including a
     2  transfer under a recorded real property sales contract.
     3     (b)  Exception.--The exemption from property tax increase
     4  shall not be terminated under subsection (a) if the sale or
     5  transfer is to a joint owner, tenant in common or tenant by the
     6  entireties who is 64 years of age or older at the time of the
     7  sale or transfer and who is otherwise entitled to claim the
     8  exemption.
     9  Section 5.  Reimbursement by Commonwealth.
    10     The Department of Revenue shall reimburse political
    11  subdivisions annually for the difference between the real
    12  property taxes imposed upon individuals who are receiving
    13  exemptions under this act and the tax liability which would have
    14  been imposed if the exemptions had not been granted.
    15  Section 6.  Effect upon earned income and net profits tax.
    16     If a school district levies a tax pursuant to 53 Pa.C.S. Ch.
    17  87 Subch. B (relating to earned income and net profits tax),
    18  that tax shall not apply to an individual who has been granted a
    19  property tax freeze under this act if by levying the earned
    20  income and net profits tax the school district would increase
    21  the property taxes of the individual.
    22  Section 7.  Applicability.
    23     This act shall apply to the tax year beginning January 1,
    24  1999, and to all subsequent tax years.
    25  Section 8.  Repeal.
    26     All acts and parts of acts are repealed insofar as they are
    27  inconsistent with this act.
    28  Section 9.  Effective date.
    29     This act shall take effect immediately.

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