PRINTER'S NO. 50
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
74
Session of
2021
INTRODUCED BY KEEFER, ECKER, RYAN, STAATS, GUENST, GLEIM,
STRUZZI, OWLETT, NEILSON, KAUFFMAN, ZIMMERMAN, DRISCOLL,
DeLUCA, WEBSTER AND WHEELAND, JANUARY 11, 2021
REFERRED TO COMMITTEE ON FINANCE, JANUARY 11, 2021
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in assessments of persons and
property, providing for senior property tax freeze.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 85 of Title 53 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter to read:
SUBCHAPTER G
SENIOR PROPERTY TAX FREEZE
Sec.
8591. Scope of subchapter.
8592. Definitions.
8593. Authority.
8594. Income eligibility.
8595. Tax freeze.
8596. Application procedure.
8597. Program performance and annual report .
8598. Report and expiration .
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§ 8591. Scope of subchapter.
This subchapter relates to senior citizen property tax
freeze.
§ 8592. 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
approval for a tax freeze under section 8595 (relating to tax
freeze).
"Claimant." A person 65 years of age or older who has
established residency in this Commonwealth for five or more
years.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Household income." All income as defined in section 1303 of
the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known
as the Taxpayer Relief Act, received by the claimant and by the
claimant's spouse during the calendar year for which a tax
deferral is claimed.
§ 8593. Authority.
All political subdivisions shall have the power and authority
to grant annual tax freezes in the manner provided in this
subchapter.
§ 8594. Income eligibility.
A claimant shall be eligible for a tax freeze under this
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subchapter if the claimant and the claimant's spouse have a
household income not exceeding $80,000 annually.
§ 8595. Tax freeze.
A claimant shall have real property taxes frozen at the
claimant's base year amount for as long as the claimant remains
eligible under this subchapter.
§ 8596. Application procedure.
(a) Initial application.--A person eligible for a tax freeze
under this subchapter may apply annually to a political
subdivision. In the initial year of application, the following
information shall be provided in the application provided under
subsection (b):
(1) A certification that the applicant or the
applicant's spouse jointly are the owners in fee simple of
the homestead upon which the real property taxes are imposed.
(2) Receipts showing timely payment of the immediately
preceding year's base payment of real property taxes.
(3) Proof of income eligibility under section 8594
(relating to income eligibility).
(4) Other information required by the political
subdivision for the purpose of complying with section 8597(c)
(relating to program performance and annual report).
(b) Application form.--The department shall develop a
standardized application form for use by political subdivisions.
The application form shall be substantially similar to the
application form for property tax or rent rebate claims under
Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), known as the Taxpayer Relief Act. The department shall
transmit the application form to the Legislative Reference
Bureau for publication in the Pennsylvania Bulletin and transmit
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the application to political subdivisions upon request. The
department may post the application on a publicly accessible
Internet website.
(c) Subsequent years.--After the political subdivision
authorizes a claimant's initial application, the claimant shall
remain eligible for a tax freeze in subsequent years so long as
the claimant annually refiles the application with the political
subdivision showing that the claimant continues to meet the
eligibility requirements of this subchapter.
§ 8597. Program performance and annual report.
(a) Duties of department.--The department shall have the
following duties:
(1) Compiling a list of how many political subdivisions
grant a tax freeze under this subchapter.
(2) Compiling the aggregate number of individuals
granted a tax freeze in each political subdivision that
grants a tax freeze under this subchapter.
(3) Calculating the difference between the total amount
of real property taxes payable by the individuals granted a
tax freeze under this subchapter and the total amount of real
property taxes that would have been payable by those
individuals but for the tax freeze.
(4) Publishing an annual report with the information
under paragraphs (1), (2) and (3) and posting the annual
report on the department's publicly accessible Internet
website.
(b) Costs.--The department shall collect the information
under subsection (a) in a manner as to minimize the costs and
administrative requirements on political subdivisions.
(c) Duties of political subdivisions.--
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(1) A political subdivision which has granted a tax
freeze under this subchapter shall notify the department in
writing and assist the department in compiling the
information under subsection (a).
(2) The reporting requirements as prescribed under this
subsection may be submitted electronically to the department.
§ 8598. Report and expiration.
(a) Report.--The department shall submit a report with the
information under section 8597(a)(1), (2) and (3) (relating to
p rogram performance and annual report) and any other relevant
information to the General Assembly before January 1 of the
tenth year following the effective date of this section for the
purpose of reviewing the eligibility criteria and effectiveness
of the tax freeze under this subchapter.
(b) Expiration.--This subchapter shall expire December 31 of
the tenth year following the effective date of this section.
Section 2. If any provision of this act or the application
thereof to any person or circumstances is held invalid, such
invalidity shall not affect other provisions or applications of
the act which can be given effect without the invalid provision
or application, and to this end the provisions of this act are
declared to be severable.
Section 3. This act shall take effect in 60 days.
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