PRINTER'S NO. 350
No. 340 Session of 1997
INTRODUCED BY TILGHMAN, STOUT, ULIANA, SALVATORE, O'PAKE,
THOMPSON AND RHOADES, FEBRUARY 5, 1997
REFERRED TO FINANCE, FEBRUARY 5, 1997
AN ACT
1 Authorizing a real estate tax deferral program; and providing
2 for definitions, for authority, for eligibility, for
3 standards, for application procedures and for liens.
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 Real Estate
8 Tax Deferment Program Act.
9 Section 2. Findings and legislative intent.
10 (a) Findings.--The General Assembly finds as follows:
11 (1) Many tax jurisdictions are forced into an increasing
12 reliance on the real property tax.
13 (2) The high level of real property taxes in some taxing
14 jurisdictions makes it difficult for many individuals to keep
15 a home.
16 (3) The high level of real property taxes in many taxing
17 jurisdictions creates a tremendous hardship on many
18 taxpayers.
1 (b) Intent.--It is the intent of the General Assembly to
2 empower certain taxing jurisdictions to provide relief to
3 qualified owner-occupants of residential property. It is the
4 further intent of the General Assembly to create a program which
5 will allow taxing jurisdictions to defer all or a portion of
6 real property taxes when certain conditions are met.
7 Section 3. 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 "Governing body." The city council, borough council,
12 incorporated town council, board of township commissioners,
13 board of township supervisors, a governing council of a home
14 rule municipality, optional form municipality or optional plan
15 municipality, a governing council of any similar general purpose
16 unit of government which may hereafter be created by statute or
17 a board of school directors of a school district.
18 "Home rule municipality." A city, borough, incorporated town
19 or township which has adopted a home rule charter under the act
20 of April 13, 1972 (P.L.184, No.62), known as the Home Rule
21 Charter and Optional Plans Law.
22 "Optional form municipality." A city which has adopted an
23 optional form of government under the act of July 15, 1957
24 (P.L.901, No.399), known as the Optional Third Class City
25 Charter Law.
26 "Optional plan municipality." A city, borough, incorporated
27 town or township which has adopted an optional plan of
28 government under the act of April 13, 1972 (P.L.184, No.62),
29 known as the Home Rule Charter and Optional Plans Law.
30 "Ordinance." A local legislative enactment of a taxing
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1 jurisdiction which shall include a resolution adopted by a
2 school district.
3 "Owner-occupant." Any person who owns and occupies the same
4 dwelling place as a principal residence and domicile.
5 "Principal residence." The dwelling place of a person,
6 including the principal house and lot, and such lots as are used
7 in connection therewith which contribute to its enjoyment,
8 comfort and convenience.
9 "School district." A school district of any class within
10 this Commonwealth which imposes a real property tax.
11 "Taxing jurisdiction." A city, borough, incorporated town,
12 township or school district, including home rule, optional plan
13 and optional form municipalities or similar general purpose
14 units of government which may hereafter be created by statute.
15 Section 4. Authority.
16 The governing body of a taxing jurisdiction shall have the
17 power and authority to provide by ordinance for special real
18 property tax provisions granting a qualified owner-occupant a
19 deferral in the payment of all or a portion of real property
20 taxes on the principal residence of the owner-occupant.
21 Section 5. Eligibility standards.
22 The governing body of a taxing jurisdiction electing to grant
23 real estate tax deferrals in accordance with this act shall by
24 ordinance establish standards for participation in the deferral
25 program which may include, but need not be limited to, the
26 following factors:
27 (1) Fee simple ownership of the principal residence by
28 the applicant and his or her spouse.
29 (2) Adequate insurance on the principal residence.
30 (3) The age of the applicant.
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1 (4) The personal or household income of the applicant.
2 (5) The amount of tax which may be deferred when other
3 unsatisfied liens and mortgages as a percentage of market
4 value of the principal residence are considered.
5 (6) The duration of the tax deferral.
6 Section 6. Application procedure.
7 A taxing jurisdiction electing to grant real estate tax
8 deferrals in accordance with this act shall promulgate such
9 regulations and forms as are necessary to implement the
10 provisions of this act.
11 Section 7. Contents of application.
12 Any tax deferral application distributed to persons shall
13 contain the following:
14 (1) A statement that the tax deferral granted under this
15 act is provided in exchange for a lien against the principal
16 residence of the applicant.
17 (2) An explanation of the manner in which the deferred
18 taxes shall become due, payable and delinquent and include,
19 at a minimum, the consequences of noncompliance with the
20 provisions of this act.
21 Section 8. Attachment and satisfaction of liens.
22 (a) Nature of lien.--All taxes deferred under this act shall
23 constitute a prior lien on the principal residence of the owner-
24 occupant in favor of the taxing jurisdiction and shall attach as
25 of the date and in the same manner as other liens for taxes. The
26 deferred taxes shall be collected as other liens for taxes, but
27 the deferred taxes shall be due, payable and delinquent only as
28 provided by the taxing jurisdiction in accordance with
29 subsection (b). In establishing the deferral program, the taxing
30 jurisdiction shall determine the interest, if any, which shall
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1 be collected on the lien.
2 (b) Deferred taxes payment.--Unless the governing body of a
3 taxing jurisdiction electing to grant real estate tax deferrals
4 by ordinance makes other inconsistent provisions, the following
5 shall apply:
6 (1) All or part of the deferred taxes may at any time be
7 paid to the taxing jurisdiction.
8 (2) In the event that the deferred taxes are not paid by
9 the approved applicant or his or her spouse during the
10 approved applicant's lifetime or during their continued
11 ownership of the property, the deferred taxes must be paid
12 either:
13 (i) prior to the conveyance of the property to any
14 third party; or
15 (ii) prior to the passing of the legal or equitable
16 title, either by will or by statute, to the heirs of the
17 approved applicant or his or her spouse.
18 (3) The surviving spouse of an approved applicant shall
19 not be required to pay the deferred taxes by reason of his or
20 her acquisition of the property due to death of the approved
21 applicant as long as the surviving spouse maintains his or
22 her residence in the property and the surviving spouse
23 continues to participate in the tax deferral program in
24 subsequent years, provided he or she is eligible under the
25 provisions established by the taxing jurisdiction in
26 accordance with this act.
27 Section 9. Repeals.
28 All acts and parts of acts are repealed insofar as they are
29 inconsistent with this act.
30 Section 10. Effective date.
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1 This act shall take effect in 60 days.
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