PRINTER'S NO. 299
No. 266 Session of 1983
INTRODUCED BY MILLER, STAIRS, WAMBACH AND EVANS, FEBRUARY 16,
1983
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 16, 1983
AN ACT
1 Authorizing economically disadvantaged senior citizens to defer
2 their property tax liabilities.
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 Deferral Act.
8 Section 2. Declaration of policy.
9 In recognition of the severe economic plight of certain
10 senior citizens and permanently disabled persons with fixed and
11 limited income who own real property and who are faced with
12 rising living costs and constantly increasing property tax
13 burdens, and further in recognition that the State Lottery Fund
14 created by the act of August 26, 1971 (P.L.351, No.91), known as
15 the State Lottery Law, does not generate sufficient revenue in
16 order to pay the full amount of percentage refunds of property
17 tax allowed by section 4 act of March 11, 1971 (P.L.104, No.3),
1 known as the Senior Citizens Rebate and Assistance Act, but can
2 only pay refunds less than or equal to $400, and in further
3 recognition that property tax millage increases, assessment
4 ratio adjustments, and reassessments can have devastating
5 impacts on elderly persons living on fixed incomes, therefore
6 the General Assembly, pursuant to section 2(b) of Article VIII,
7 of the Constitution of the Commonwealth of Pennsylvania,
8 considers it to be a matter of sound public policy to allow
9 economically disadvantaged senior citizens to defer their
10 property tax liabilities and to remain in peaceful possession of
11 their homesteads.
12 Section 3. Eligible applicants; definition.
13 (a) Eligibility requirements.--All persons who meet the
14 following eligibility requirements shall be granted a tax
15 deferral. To be eligible for a deferral under this act, a
16 claimant shall be sixty-two years of age or older or permanently
17 disabled and shall have a household income of less than $12,000.
18 (b) Definitions.--As used in this section:
19 "Household income," means all income, from whatever source
20 derived, received during a calendar year by the claimant and by
21 the claimant's spouse while residing in the homestead.
22 Section 4. Tax deferral.
23 (a) Amount of deferral.--All persons who meet the
24 eligibility requirements contained in this act shall be entitled
25 to a real estate tax deferral amounting to the lesser of the
26 following:
27 (1) The increase in real property taxes in excess of the
28 claimant's "base payment".
29 (2) The total amount that a claimant, who is also
30 eligible and receives a rebate under the act of March 11,
19830H0266B0299 - 2 -
1 1971 (P.L.104, No.3), known as the Senior Citizens Rebate and
2 Assistance Act, would be entitled to receive under that act
3 were there no maximum rebate, less such maximum.
4 (b) Ineligibility for deferral.--No tax deferrals shall be
5 granted if the total amount of deferred taxes plus the total
6 amount of all other unsatisfied liens on the homestead of the
7 claimant exceed 85% of the market value of the homestead, or if
8 the outstanding principle on the primary mortgage financing on
9 the homestead is an amount which exceeds 70% of the market value
10 of the homestead. Market value shall equal assessed value
11 divided by the ratio of assessed to market value as most
12 recently determined by the State Tax Equalization Board for the
13 school district in which the property is located.
14 (c) Definitions.--For the purpose of this section the
15 following words and phrases shall have the meanings given to
16 them in this subsection.
17 "Base payment." The amount of property tax paid by the
18 claimant either in the tax year beginning January 1, 1980, or in
19 the first tax year during which the claimant or the claimant's
20 spouse first becomes eligible, whichever occurs later, on the
21 personal residence in which the claimant has maintained
22 continuous occupancy and ownership since either January 1, 1980,
23 or the date upon which either the claimant or the claimant's
24 spouse first became eligible. In the event the claimant
25 purchases a residence after January 1, 1980, or after the date
26 upon which either the claimant or the claimant's spouse first
27 become eligible, the base payment means property taxes paid
28 during the tax year in which the purchase was made.
29 "Increases in property taxes." The additional payments due
30 above the base amount, resulting from millage increases,
19830H0266B0299 - 3 -
1 modifications in the assessment ratio, or assessment increase.
2 Section 5. Application procedure.
3 Any person eligible for tax deferrals under section 3 may
4 apply for such deferrals by filing with the taxing authorities
5 the following documents:
6 (1) A statement of request for tax deferrals.
7 (2) A certification that the claimant, the claimant's
8 spouse, or else the claimant and his or her spouse jointly
9 are the owners in fee simple of the residence upon which the
10 property taxes are imposed.
11 (3) A certification that the claimant's residence is
12 adequately insured to the extent of all outstanding liens.
13 (4) Receipts showing prompt payment of the current
14 year's property tax liability.
15 Section 6. Contents of application.
16 Forms distributed to claimants pursuant to section 5 shall:
17 (1) Clearly state the tax deferral granted pursuant to
18 this act is provided in exchange for a lien against the
19 homestead of the claimant.
20 (2) Explain the manner in which the deferred taxes shall
21 become due, payable, and delinquent.
22 Section 7. Placement and satisfaction of liens.
23 (a) Taxes constitute lien.--All taxes deferred pursuant to
24 this act shall constitute a prior lien on the homestead of the
25 claimant in favor of the taxing authority, and shall attach as
26 of the date and in the same manner and shall be collected as
27 other liens for taxes, but such deferred taxes shall only be
28 due, payable, and delinquent as provided in this act and no
29 interest shall be collected on the lien.
30 (b) Payment of taxes.--All or part of the deferred taxes may
19830H0266B0299 - 4 -
1 at any time be paid to the taxing authority by:
2 (1) the owner of the property or the spouse of the
3 owner; or
4 (2) the next of kin of the owner, heir of the owner,
5 child of the owner, or any person having or claiming a legal
6 or equitable interest in the property, provided no objection
7 is made by the owner within 30 days after the tax collector
8 notifies the owner of the fact that such payment has been
9 tendered.
10 Section 8. Applicability
11 This act shall apply to tax years beginning January 1, 1983.
12 Section 9. Effective date.
13 This act shall take effect immediately.
A25L72WMB/19830H0266B0299 - 5 -