PRINTER'S NO. 2788
No. 1987 Session of 2007
INTRODUCED BY BARRAR, ADOLPH, BAKER, BEAR, BENNINGHOFF, BOYD,
BRENNAN, CALTAGIRONE, CAPPELLI, DALLY, EVERETT, FLECK, GEIST,
GEORGE, GIBBONS, GILLESPIE, GINGRICH, GOODMAN, HARHART,
HARRIS, HELM, HENNESSEY, HERSHEY, HORNAMAN, KOTIK, MELIO,
MENSCH, MOYER, MURT, MUSTIO, D. O'BRIEN, PETRARCA, PETRONE,
PYLE, RAYMOND, RUBLEY, SCAVELLO, SCHRODER, SIPTROTH, SWANGER,
J. TAYLOR, THOMAS, TRUE, VULAKOVICH, WATSON, WOJNAROSKI AND
YOUNGBLOOD, OCTOBER 30, 2007
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 30, 2007
AN ACT
1 Providing for a freeze on real estate taxes for senior citizens.
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 Senior
6 Citizens Property Tax Freeze 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 "Base payment." The amount of property tax paid by the
12 claimant either in the tax year beginning January 1, 2007, or in
13 the first tax year during which the claimant first becomes
14 eligible, whichever occurs later, on the primary residence in
1 which the claimant has maintained continuous occupancy and
2 ownership since either January 1, 2007, or the date upon which
3 the claimant first became eligible. In the event the claimant
4 purchases a residence after January 1, 2007, or after the date
5 upon which the claimant first becomes eligible, the base payment
6 means property taxes paid during the tax year in which the
7 purchase was made.
8 "Claimant." A person who files a claim for property tax
9 rebate or rent rebate in lieu of property taxes and:
10 (1) was at least 65 years of age or whose spouse, if a
11 member of the household, was at least 65 years of age during
12 a calendar year in which real property taxes or rent were due
13 and payable;
14 (2) was a widow or widower and was at least 50 years of
15 age during a calendar year or part thereof in which real
16 property taxes were due and payable; or
17 (3) was a permanently disabled person 18 years of age or
18 older during a calendar year or part thereof in which real
19 property taxes were due and payable.
20 "Department." The Department of Revenue of the Commonwealth.
21 "Homestead." A dwelling owned, and so much of the land
22 surrounding it, as is reasonably necessary for the use of the
23 dwelling as a home, occupied by a claimant for more than 270
24 days of the year. The term includes, but is not limited to:
25 (1) Premises occupied by reason of ownership or lease in
26 a cooperative housing corporation.
27 (2) Mobile homes which are assessed as realty for local
28 property tax purposes and the land, if owned by the claimant,
29 upon which the mobile home is situated, and other similar
30 living accommodations.
20070H1987B2788 - 2 -
1 (3) A part of a multidwelling or multipurpose building
2 and a part of the land upon which it is built.
3 (4) Premises occupied by reason of the claimant's
4 ownership or rental of a dwelling located on land owned by a
5 nonprofit incorporated association, of which the claimant is
6 a member, if the claimant is required to pay a pro rata share
7 of the property taxes levied against the association's land.
8 (5) Premises occupied by a claimant if the claimant is
9 required by law to pay a property tax by reason of the
10 claimant's ownership or rental, including a possessory
11 interest, in the dwelling, the land or both. An owner
12 includes a person in possession under a contract of sale,
13 deed of trust, life estate, joint tenancy or tenancy in
14 common or by reason of statutes of descent and distribution.
15 "Increases in property taxes." The additional payments due
16 above the base amount, resulting from millage increases,
17 modifications in the assessment ratio or assessment increase.
18 "Local taxing authorities." A political subdivision of the
19 Commonwealth which shall include a municipality, township,
20 county or school district.
21 Section 3. Tax freeze.
22 Notwithstanding the provisions of any other law, any claimant
23 who meets the eligibility requirements contained in this act
24 shall be entitled to a real estate tax freeze on the homestead
25 and shall not be required to pay any increases in property taxes
26 in excess of the claimant's base payment.
27 Section 4. Application procedure.
28 Any claimant eligible for a tax freeze under this act may
29 apply for the freeze by filing the following documents with the
30 local taxing authorities:
20070H1987B2788 - 3 -
1 (1) A statement of request for a tax freeze.
2 (2) A certification that the claimant or the claimant's
3 spouse is the owner in the homestead upon which the property
4 taxes are imposed.
5 (3) Evidence that the claimant is 65 years of age or
6 older; or is a widow or widower and was at least 50 years of
7 age during a calendar year or part thereof in which real
8 property taxes were due and payable; or was a permanently
9 disabled person 18 years of age or older during a calendar
10 year or part thereof in which real property taxes were due
11 and payable.
12 (4) Receipts showing prompt payment of the current
13 year's real property tax liability.
14 Section 5. Termination of tax freeze.
15 (a) General rule.--Subject to the limitation under
16 subsection (b), the tax rate on and the assessment of any real
17 property taxes shall become current on the sale or transfer of
18 that real property, including any transfer under a recorded real
19 property sales contract.
20 (b) Limitation.--A tax freeze under this act shall remain in
21 effect upon the transfer of the affected real property to a
22 surviving spouse if at the time of the death of the claimant,
23 the surviving spouse is at least 50 years of age or will be 50
24 years of age within six months of the date of death of the
25 claimant.
26 Section 6. Commonwealth payment.
27 (a) Notification of balance.--The local taxing authorities
28 shall provide notification and documentation to the department
29 of the total balance due to the local taxing authorities for
30 increases in real property taxes.
20070H1987B2788 - 4 -
1 (b) Certification.--The department shall certify the total
2 amount due to increase in real property taxes as provided under
3 this act.
4 (c) Payment.--Annually, the department shall pay to local
5 taxing authorities the amount of each claimant's increase in
6 property taxes in excess of the claimant's base payment from the
7 Property Tax Relief Fund.
8 Section 7. Effective date.
9 This act shall take effect immediately.
F18L72JKL/20070H1987B2788 - 5 -