PRINTER'S NO. 3461
No. 2416 Session of 1984
INTRODUCED BY VROON, J. L. WRIGHT, JOHNSON, GREENWOOD, GANNON,
FREIND, BOOK, ARTY, KOSINSKI, PETRARCA, ITKIN, PITTS,
E. Z. TAYLOR, WOGAN, SALVATORE, BUNT AND O'BRIEN,
SEPTEMBER 17, 1984
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 17, 1984
AN ACT
1 Authorizing certain senior or permanently disabled citizens to
2 defer 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 Property Tax
7 Deferral Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Base payment." The amount of property tax paid by the
13 claimant either in the tax year beginning January 1, 1984, or in
14 the first tax year during which the claimant or the claimant's
15 spouse first becomes eligible, whichever occurs later, on the
16 personal residence in which the claimant has maintained
17 continuous occupancy and ownership for a minimum of five years
1 prior to January 1, 1984, or the date upon which either the
2 claimant or the claimant's spouse first became eligible. In the
3 event the claimant purchases a residence after January 1, 1984,
4 or after the date upon which either the claimant or the
5 claimant's spouse first become eligible, the base payment means
6 property taxes paid during the tax year in which the purchase
7 was made.
8 "Household income." All income, from whatever source
9 derived, received during a calendar year by the claimant and by
10 the claimant's spouse while residing in the homestead.
11 "Increases in property taxes." The additional payments due
12 above the base amount, resulting from millage increases,
13 modifications in the assessment ratio or assessment increase.
14 "Market value." The equal assessed value divided by the
15 ratio of assessed to market value as most recently determined by
16 the State Tax Equalization Board for the school district in
17 which the property is located.
18 Section 3. Eligibility.
19 Any person who is 65 years of age or older or who is 55 years
20 of age and a widow or widower, or who is permanently disabled,
21 and has a household income of less than $25,000 shall be
22 eligible for tax deferral under this act.
23 Section 4. Tax deferral.
24 (a) General rule.--All persons who meet the eligibility
25 requirements of section 3 shall be entitled to a real estate tax
26 deferral amounting to the increase in real property taxes in
27 excess of the claimant's base payment.
28 (b) Deferral not granted.--No tax deferrals shall be granted
29 if the total amount of deferred taxes, plus the total amount of
30 all other unsatisfied liens on the homestead of the claimant,
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1 exceeds 75% of the market value of the homestead or if the
2 outstanding principal on the primary mortgage financing on the
3 homestead is an amount which exceeds 55% of the market value of
4 the homestead.
5 Section 5. Application procedure.
6 Any person eligible for tax deferrals under this act may
7 apply for a deferral by filing with the taxing authorities the
8 following documents:
9 (1) A statement of request for tax deferrals.
10 (2) A certification that the claimant, the claimant's
11 spouse, or the claimant and his or her spouse jointly are the
12 owners in fee simple of the residence upon which the property
13 taxes are imposed.
14 (3) A certification that the claimant's residence is
15 insured to the extent sufficient to pay all outstanding liens
16 plus the deferred taxes.
17 (4) Receipts showing prompt payment of the current
18 year's property tax liability.
19 Section 6. Contents of application.
20 Forms distributed to claimants pursuant to section 5 shall:
21 (1) Clearly state that the tax deferral granted pursuant
22 to this act is provided in exchange for a lien against the
23 homestead of the claimant in the amount of the deferred tax
24 and at an annual interest rate of 8%.
25 (2) Explain the manner in which the deferred taxes shall
26 become due, payable and delinquent.
27 Section 7. Placement and satisfaction of liens.
28 (a) Lien.--All taxes deferred pursuant to this act shall
29 constitute a prior lien on the homestead of the claimant in
30 favor of the taxing authority and shall attach as of the date
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1 and in the same manner and shall be collected as other liens for
2 taxes, but such deferred taxes shall only be due and payable
3 upon transfer of title to a person other than a surviving
4 spouse.
5 (b) Payment of tax.--All or part of the deferred taxes and
6 interest may at any time be paid to the taxing authority by:
7 (1) the owner of the property or the spouse of the
8 owner; or
9 (2) the next of kin of the owner, heir of the owner,
10 child of the owner or any person having or claiming a legal
11 or equitable interest in the property, provided no objection
12 is made by the owner within 30 days after the tax collector
13 notifies the owner of the fact that the payment has been
14 tendered.
15 Section 8. Applicability.
16 This act shall apply to the tax year commencing January 1,
17 1985, and to each tax year thereafter.
18 Section 9. Effective date.
19 This act shall take effect immediately. If enacted after
20 January 1, 1985, this act shall take effect immediately and
21 shall be retroactive to January 1, 1985.
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