PRINTER'S NO. 1132
No. 953 Session of 2001
INTRODUCED BY GREENLEAF, BOSCOLA, COSTA, ERICKSON, HOLL, O'PAKE, TARTAGLIONE AND WAUGH, JUNE 8, 2001
REFERRED TO FINANCE, JUNE 8, 2001
AN ACT 1 Providing for an exemption from increases in school real 2 property taxes for eligible taxpayers because of their age 3 and income level and for the reimbursement of school 4 districts by the Commonwealth. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Short title. 8 This act shall be known and may be cited as the Senior 9 Citizen School Real Property Tax Freeze Act. 10 Section 2. Definitions. 11 The following words and phrases when used in this act shall 12 have the meanings given to them in this section unless the 13 context clearly indicates otherwise: 14 "Base amount." The amount of school real property taxes owed 15 on the homestead in the base year. 16 "Base year." The tax year immediately preceding the tax year 17 during which the eligible taxpayer becomes 65 years of age. If 18 the taxpayer did not own the homestead during the tax year
1 immediately preceding the tax year during which the taxpayer 2 became 65 years of age, the base year shall be the first tax 3 year during which the eligible taxpayer owned the homestead and 4 was 65 years of age or older. 5 "Eligible taxpayer." A taxpayer who meets the requirements 6 of section 5. 7 "Homestead." Any real property that meets the requirements 8 of section 6. 9 "Household income." All income as defined in the act of 10 March 11, 1971 (P.L.104, No.3), known as the Senior Citizens 11 Rebate and Assistance Act, received by the eligible taxpayer and 12 by the eligible taxpayer's spouse during the calendar year 13 immediately preceding the tax year for which a tax exemption is 14 claimed. 15 "Increase in school real property taxes." An increase in the 16 school real property taxes above the base amount resulting from 17 a millage increase, a change in the assessment ratio or method 18 or by a revaluing of all properties. 19 Section 3. School real property tax exemption. 20 Pursuant to section 2(b) of Article VIII of the Constitution 21 of Pennsylvania, the General Assembly hereby requires school 22 districts to grant an annual exemption from increases in school 23 real property taxes for eligible taxpayers because of their age 24 and income level. This exemption shall apply only to school real 25 property taxes on an eligible taxpayer's homestead. 26 Section 4. Amount of exemption. 27 The annual school real property tax exemption granted under 28 this act shall equal the increase in school real property taxes 29 on the eligible taxpayer's homestead. The amount shall be 30 calculated by subtracting the amount of school real property 20010S0953B1132 - 2 -
1 taxes on the homestead in the base year from the amount of 2 school real property taxes on the homestead in the tax year for 3 which a claim for an exemption is filed. The difference, if any, 4 shall be the amount of the exemption. 5 Section 5. Eligible taxpayer. 6 The real property tax exemption shall apply to each taxpayer 7 in the school district meeting the following requirements: 8 (1) The taxpayer is at least 65 years of age. 9 (2) The taxpayer has an annual household income not 10 exceeding $40,000. 11 (3) The taxpayer is not delinquent in paying school real 12 property taxes on the homestead. 13 (4) The taxpayer has filed a claim for the exemption, 14 including all necessary and required information, on a 15 standard form. The school district shall make such forms 16 available upon request. 17 Section 6. Homestead. 18 The exemption from the tax upon real property authorized by 19 the General Assembly under section 3 shall apply only to school 20 real property taxes on an eligible taxpayer's homestead. For 21 purposes of this act, an eligible taxpayer's homestead is real 22 property which qualifies as a homestead under the act of March 23 11, 1971 (P.L.104, No.3), known as the Senior Citizens Rebate 24 and Assistance Act, except real property which is rented or 25 leased to the eligible taxpayer. 26 Section 7. Commonwealth reimbursement. 27 Pursuant to section 2(b) of Article VIII of the Constitution 28 of Pennsylvania, the Commonwealth of Pennsylvania shall 29 reimburse school districts for revenue losses occasioned by the 30 tax exemption provided by this act. The Department of Education 20010S0953B1132 - 3 -
1 shall, upon submission by a school district of documentation as 2 the department may require, reimburse the school district for 3 the amount of revenue lost to the school district because of 4 this exemption. The reimbursement shall occur within 60 days of 5 submission of the documentation. 6 Section 8. Applicability. 7 This act shall apply to tax years beginning July 1, 2002. 8 Section 9. Effective date. 9 This act shall take effect immediately. E2L72MRD/20010S0953B1132 - 4 -