THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WILLIAMS, WASHINGTON, FONTANA, TARTAGLIONE, RAFFERTY, ERICKSON, GREENLEAF, SOLOBAY, HUGHES, SCHWANK, BOSCOLA AND STACK, APRIL 16, 2012

REFERRED TO FINANCE, APRIL 16, 2012  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, further providing for definitions, for

authority, for income eligibility and for tax deferral. 

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 8572, 8573, 8574 and 8575 of Title 53 of

the Pennsylvania Consolidated Statutes are amended to read:

§ 8572.  Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

["Base payment."  The amount of property tax paid by an

applicant in the base year.

"Base year."  The tax year preceding the first tax year for

which a taxing authority implements the provisions of this

subchapter or the tax year immediately preceding an applicant's

entry into the tax deferral program.]

"Claimant."  A person whose household income does not exceed

the limit provided for in section 8574 (relating to income

eligibility).

"Household income."  All income as defined in the act of

March 11, 1971 (P.L.104, No.3), known as the Senior Citizens

Rebate and Assistance Act, received by the claimant and by the

claimant's spouse during the calendar year for which a tax

deferral is claimed.

["Increase in real property taxes."  An increase in the

property taxes above the base payment resulting from a millage

increase, a change in the assessment ratio or method or by a

revaluing of all properties.]

§ 8573.  Authority.

All political subdivisions shall [have the power and

authority to] grant annual tax deferrals in the manner provided

in this subchapter.

§ 8574.  Income eligibility.

A claimant shall be eligible for a tax deferral if the

claimant and the claimant's spouse have a household income not

exceeding [the maximum household income eligibility limitations

set forth in the act of March 11, 1971 (P.L.104, No.3), known as

the Senior Citizens Rebate and Assistance Act] $50,000.

§ 8575.  Tax deferral.

(a)  Amount.--An annual real estate tax deferral granted

under this subchapter shall equal the [increase in] real

property taxes upon the homestead of the claimant.

(b)  Prohibition.--No tax deferrals shall be granted if the

total amount of deferred taxes plus the total amount of all

other unsatisfied liens on the homestead of the claimant plus

the outstanding principal on any and all mortgages on the

homestead exceeds 85% of the market value of the homestead or if

the outstanding principal on any and all mortgages on the

homestead exceeds 70% of the market value of the homestead.

Market value shall equal assessed value divided by the common

level ratio as most recently determined by the State Tax

Equalization Board for the county in which the property is

located.

Section 2.  The amendment of 53 Pa.C.S. §§ 8572, 8573, 8574

and 8575 shall apply to real estate tax deferrals applied for on

or after the effective date of this section.

Section 3.  This act shall take effect in 60 days.