THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY REICHLEY, CALTAGIRONE, CLYMER, EVERETT, FLECK, GEIST, W. KELLER, KILLION, MARSICO, O'NEILL, PETRI AND SCAVELLO, FEBRUARY 14, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 14, 2011  

AN ACT

Providing for local senior citizen property tax rent rebates.

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 Local Senior

Citizen Property Tax and Rent Rebate 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:

"Claimant."  Any of the following who, during all or part of

a calendar year in which real property taxes, rent and inflation

costs were due and payable, file a claim for property tax rebate

or rent rebate in lieu of property taxes and inflation dividend

and whose household income does not exceed $35,000:

(1)  A person who was 65 years of age or older, or whose

spouse, if a member of the household, was 65 years of age or

older.

(2)  A widow or widower who was 50 years of age or older.

(3)  A permanently disabled person 18 years of age or

older.

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

"Homestead."  A dwelling occupied by a claimant, whether

owned or rented, and as much of the land surrounding it as is

reasonably necessary for use of the dwelling as a home. The term

shall also include all of the following:

(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 or rented 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 he is required by

law to pay a property tax by reason of his ownership or

rental, including a possessory interest, in the dwelling, the

land or both.

"Household income."  All income received by the claimant and

the claimant's spouse while residing in the homestead during the

calendar year for which a rebate and dividend are claimed.

"Income."  Except for surplus food or other relief in kind

supplied by a governmental agency or property tax, rent rebate

or inflation dividend, all income from whatever source derived,

including all of the following:

(1)  Salaries, wages, bonuses and commissions.

(2)  Income from self-employment.

(3)  Alimony, support money, cash public assistance and

relief.

(4)  The gross amount of any pensions or annuities,

including 50% of railroad retirement benefits.

(5)  Fifty percent of all benefits, except Medicare

benefits, received under the Social Security Act (49 Stat.

620, 42 U.S.C. § 301 et seq.).

(6)  All benefits received under State unemployment

insurance laws and veterans' disability payments.

(7)  All interest received from the Federal or any state

government or any instrumentality or political subdivision

thereof.

(8)  Realized capital gains.

(9)  Rentals.

(10)  Workers' compensation and the gross amount of loss

of time, insurance benefits, life insurance benefits and

proceeds except the first $5,000 of the total of death

benefit payments.

(11)  Gifts of cash or property, other than transfers by

gifts between members of a household, in excess of a total

value of $300.

"Local taxing authority."  A political subdivision of the

Commonwealth, which shall include a municipality, township,

county or school district.

"Owner."  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.

"Permanently disabled person."  A person who is unable to

engage in any substantial gainful activity by reason of any

medically determinable physical or mental impairment that can be

expected to continue indefinitely.

"Real property taxes."  All taxes on a homestead, except for

municipal assessments, delinquent charges and interest, due and

payable during a calendar year.

"Rent rebate in lieu of property taxes."  Twenty percent of

the gross amount actually paid in cash or its equivalent in any

calendar year to a landlord in connection with the occupancy of

a homestead by a claimant, irrespective of whether the amount

constitutes payment solely for the right of occupancy or

otherwise.

"Social Security Act."  The Social Security Act (49 Stat.

620, 42 U.S.C. § 301 et seq.).

"Widow" or "widower."  The surviving wife or the surviving

husband of a deceased individual who has not remarried.

Section 3.  Property tax and rent rebate.

(a)  Amount of claim.--The following shall apply:

(1)  (i)  The base amount of a claim for property tax

rebate for real property taxes due and payable during

calendar year 2011 and thereafter shall be determined by

the local taxing authority.

(ii)  The supplemental amount for a claimant with a

household income equal to or less than $35,000 and an

eligible claim for property tax rebate for real property

taxes due and payable during the calendar year preceding

the first year in which a payment under this section is

made and each year thereafter and whose real property

taxes exceed 15% of the claimant's household income shall

be equal to 50% of the base amount determined under

subparagraph (i). A claimant who is a resident of a city

of the first class, a city of the second class A or a

school district of the first class A shall be ineligible

for the supplemental amount under this subparagraph.

(2)  The amount of any claim for rent rebate in lieu of

property taxes for rent due and payable during calendar year

2011 and thereafter shall be determined by the local taxing

authority.

(b)  Limits.--No claim shall be allowed if the amount of

property tax or rent rebate computed in accordance with this

section is less than $10. The maximum amount of property tax or

rent rebate payable under this section shall not exceed $500.

(c)  Exemption.--No claim shall be allowed if the claimant is

a tenant of an owner of real property exempt from real property

taxes.

(d)  Apportionment.--A local taxing authority shall apportion

the real property taxes or rent in accordance with the period or

degree of ownership or leasehold or eligibility of the claimant

in determining the amount of rebate for which a claimant is

eligible if any of the following apply:

(1)  A homestead is owned or rented and occupied for only

a portion of a year.

(2)  A homestead is owned or rented in part by a person

who does not meet the qualifications for a claimant,

exclusive of any interest owned or leased by a claimant's

spouse.

(3)  A claimant is a widow or widower who remarries.

(4)  A claimant is a permanently disabled person who is

no longer disabled.

(e)  Public assistance.--A claimant who receives public

assistance from the Department of Public Welfare shall not be

eligible for rent rebate in lieu of property taxes or an

inflation dividend during those months that the claimant

receives public assistance.

(f)  Rent.--Rent shall not include subsidies provided by or

through a governmental agency.

Section 4.  Filing of claim.

A claim for property tax or rent rebate shall be filed with

the local taxing authority on a date prescribed by the local

taxing authority for the preceding calendar year in which real

property taxes or rent were due and payable. Only one claimant

from a homestead each year shall be entitled to the property tax

or rent rebate and inflation dividend. If two or more persons

are able to meet the qualifications for a claimant, they may

determine who the claimant shall be. If they are unable to

agree, the department shall determine to whom the rebate is to

be paid.

Section 5.  Proof of claim.

(a)  Inclusion with claim.--Each claim shall include

reasonable proof of household income, the size and nature of the

property claimed as a homestead and the rent or tax receipt or

other proof that the real property taxes on the homestead have

been paid, or rent in connection with the occupancy of a

homestead has been paid. If the claimant is a widow or widower,

a declaration of such status in such manner as prescribed by the

department shall be included.

(b)  Social Security determination.--Proof that a claimant is

eligible to receive disability benefits under the Social

Security Act shall constitute proof of disability under this

act. No person who has been found not to be disabled by the

Social Security Administration shall be granted a rebate or

dividend under this act. A claimant not covered under the Social

Security Act shall be examined by a physician designated by the

local taxing authority and such status determined using the same

standards used by the Social Security Administration.

(c)  Time of payment.--It shall not be necessary that taxes

or rent were paid directly by the claimant if the rent or taxes

have been paid when the claim is filed.

(d)  Age.--The first claim filed shall include proof that the

claimant or the claimant's spouse was 65 years of age or older

or 50 years of age or older in the case of a widow or widower

during the calendar year in which real property taxes or rent

were due and payable.

Section 6.  Incorrect claim.

Whenever on audit of any claim the local taxing authority

finds the claim to have been incorrectly determined, it shall

redetermine the correct amount of the claim and notify the

claimant of the reason of the redetermination and the amount of

the corrected claim.

Section 7.  Funds for payment of claims.

Approved claims shall be paid from the local taxing

authority's general fund.

Section 8.  Petition for redetermination.

Any claimant whose claim is either denied, corrected or

otherwise adversely affected by the local taxing authority may

file with the local taxing authority a petition for

redetermination on forms supplied by the local taxing authority

within 90 days after the date of mailing of written notice by

the local taxing authority of the action. It shall be the duty

of the local taxing authority, within six months after receiving

a filed petition for redetermination, to dispose of the matters

raised by the petition and mail notice of the local taxing

authority's decision to the claimant.

Section 19.  Applicability.

This act shall apply to the tax year beginning January 1,

2011, and each tax year thereafter.

Section 20.  Effective date.

This act shall take effect immediately.