THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BARRAR, ADOLPH, BAKER, BEAR, BEYER, BOYD, BRENNAN, BROWN, CALTAGIRONE, CLYMER, EVERETT, FLECK, GEIST, GEORGE, GIBBONS, GILLESPIE, GINGRICH, GROVE, HELM, HENNESSEY, HICKERNELL, HORNAMAN, W. KELLER, MARSICO, MELIO, MICCARELLI, MOUL, MUSTIO, M. O'BRIEN, O'NEILL, PETRARCA, PYLE, READSHAW, ROCK, SCAVELLO, SIPTROTH, SWANGER, VULAKOVICH, WATSON, MURT, FARRY, HARHART, GALLOWAY, R. TAYLOR, HUTCHINSON, GODSHALL AND HOUGHTON, MARCH 11, 2009

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 28, 2010   

AN ACT

Providing for a freeze on real estate taxes for senior citizens.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Senior

Citizens Property Tax Freeze Act.

Section 2.  Definitions.

The following words and phrases when used in this act 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 the

claimant either in the tax year beginning January 1, 2009, or in

the first tax year during which the claimant first becomes

eligible, whichever occurs later, on the primary residence in

which the claimant has maintained continuous occupancy and

ownership since either January 1, 2009, or the date upon which

the claimant first became eligible. In the event the claimant

purchases a residence after January 1, 2009, or after the date

upon which the claimant first becomes eligible, the term means

property taxes paid during the tax year in which the purchase

was made.

"Claimant."  A person who files a claim for property tax

rebate or rent rebate in lieu of property taxes and:

(1)  was at least 65 years of age or whose spouse, if a

member of the household, was at least 65 years of age during

a calendar year in which real property taxes or rent were due

and payable;

(2)  was a widow or widower and was at least 50 years of

age during a calendar year or part thereof in which real

property taxes were due and payable; or

(3)  was a permanently disabled person 18 years of age or

older during a calendar year or part thereof in which real

property taxes were due and payable.

"Department."  The Department of Revenue of the Commonwealth.

"Homestead."  A dwelling owned, and so much of the land

surrounding it, as is reasonably necessary for the use of the

dwelling as a home, occupied by a claimant for more than 270

days of the year. The term includes, but is not limited to:

(1)  Premises occupied by reason of ownership or lease in

a cooperative housing corporation.

(2)  Mobile homes which are assessed as realty for local

property tax purposes and the land, if owned by the claimant,

upon which the mobile home is situated, and other similar

living accommodations.

(3)  A part of a multidwelling or multipurpose building

and a part of the land upon which it is built.

(4)  Premises occupied by reason of the claimant's

ownership or rental of a dwelling located on land owned by a

nonprofit incorporated association, of which the claimant is

a member, if the claimant is required to pay a pro rata share

of the property taxes levied against the association's land.

(5)  Premises occupied by a claimant if the claimant is

required by law to pay a property tax by reason of the

claimant's ownership or rental, including a possessory

interest, in the dwelling, the land or both. An owner

includes a person in possession under a contract of sale,

deed of trust, life estate, joint tenancy or tenancy in

common or by reason of statutes of descent and distribution.

"Increases in property taxes."  The additional payments due

above the base amount, resulting from millage increases,

modifications in the assessment ratio or assessment increase.

"Local taxing authorities."  A political subdivision of the

Commonwealth which shall include a municipality, township,

county or school district.

Section 3.  Tax freeze.

Notwithstanding the provisions of any other law, any claimant

who meets the eligibility requirements contained in this act

shall be entitled to a real estate tax freeze on the homestead

and shall not be required to pay any increases in property taxes

in excess of the claimant's base payment.

Section 4.  Application procedure.

Any claimant eligible for a tax freeze under this act may

apply for the freeze by filing the following documents with the

local taxing authorities:

(1)  A statement of request for a tax freeze.

(2)  A certification that the claimant or the claimant's

spouse is the owner in the homestead upon which the property

taxes are imposed.

(3)  Evidence that the claimant is 65 years of age or

older; or is a widow or widower and was at least 50 years of

age during a calendar year or part thereof in which real

property taxes were due and payable; or was a permanently

disabled person 18 years of age or older during a calendar

year or part thereof in which real property taxes were due

and payable.

(4)  Receipts showing prompt payment of the current

year's real property tax liability.

Section 5.  Termination of tax freeze.

(a)  General rule.--Subject to the limitation under

subsection (b), the tax rate on and the assessment of any real

property taxes shall become current on the sale or transfer of

that real property, including any transfer under a recorded real

property sales contract.

(b)  Limitation.--A tax freeze under this act shall remain in

effect upon the transfer of the affected real property to a

surviving spouse if at the time of the death of the claimant,

the surviving spouse is at least 50 years of age or will be 50

years of age within six months of the date of death of the

claimant.

Section 6.  Commonwealth payment.

(a)  Notification of balance.--The local taxing authorities

shall provide notification and documentation to the department

of the total balance due to the local taxing authorities for

increases in real property taxes.

(b)  Certification.--The department shall certify the total

amount due to increase in real property taxes as provided under

this act.

(c)  Payment.--Annually, the department shall pay to local

taxing authorities the amount of each claimant's increase in

property taxes in excess of the claimant's base payment from the

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Property Tax Relief Fund.

Section 7.  Effective date.

This act shall take effect immediately.