Regular Session 2023-2024 House Bill 0236 P.N. 0197

PRINTER'S NO. 197

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

236

Session of

2023

INTRODUCED BY HILL-EVANS, CIRESI, HANBIDGE, PROBST, McNEILL,

GUENST, KINSEY, HARKINS, M. MACKENZIE, SANCHEZ, MADDEN,

R. MACKENZIE, BURGOS AND PARKER, MARCH 10, 2023

REFERRED TO COMMITTEE ON FINANCE, MARCH 10, 2023

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for veterans property tax rebate and

rent rebate assistance; establishing the Veterans Property

Tax Rebate and Rent Rebate Assistance Account; and making an

appropriation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE XXIX-I

VETERANS PROPERTY TAX REBATE

AND RENT REBATE ASSISTANCE

Section 2901-I. Scope of article.

This article relates to veterans property tax rebate and rent

rebate assistance.

Section 2902-I. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Board." The Board of Finance and Revenue of the

Commonwealth.

"Claim." A claim for a property tax rebate or rent rebate

under this article.

"Claimant." An individual who is a veteran honorably

discharged from the armed forces of the United States, including

the National Guard, within the past three years and who files a

claim.

"DD214." A United States Department of Defense Report of

Separation Form 214 or a similarly effective form issued by the

Department of Defense relating to separation from military

service.

"DD215." A United States Department of Defense Incomplete

Awards, Decorations and Discharges Form 215 or similarly

effective form issued by the Department of Defense to correct

errors or make additions to a DD214 in order to ensure that a

veteran has accurate discharge documentation.

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

"Homestead." As follows:

(1) A dwelling, whether owned or rented, 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.

(2) The term includes:

(i) Premises occupied by reason of ownership or

lease in a cooperative housing corporation.

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(ii) A mobile home that is 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.

(iii) A part of a multidwelling or multipurpose

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

(iv) Premises occupied by reason of a 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.

(v) 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. Ownership

includes 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.

"Property tax rebate." A rebate under this article for real

property taxes.

"Real property taxes." All taxes on a homestead, exclusive

of municipal assessments, delinquent charges and interest, due

and payable during a calendar year.

"Rent in lieu of property taxes." Rent due and payable

during a calendar year to a landlord in connection with the

occupancy of a homestead, irrespective of whether the amount

constitutes payment solely for the right of occupancy or

otherwise.

"Rent rebate." A rebate under this article for rent in lieu

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of property taxes.

"Secretary." The Secretary of Revenue of the Commonwealth.

"Veteran." An individual who served in the armed forces of

the United States, including the National Guard.

Section 2903-I. Establishment of program.

The Veterans Property Tax Rebate and Rent Rebate Assistance

Program is established in the department and shall be

administered as provided in this article.

Section 2904-I. Property tax rebate and rent rebate.

(a) Schedule of rebates.--The following apply:

(1) As follows:

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

rebate for real property taxes due and payable during a

calendar year shall be determined in accordance with the

following schedule:

Household Income

Amount of Real Property Taxes

Allowed as Rebate

$ 0 - $ 8,000 $650

8,001 - 15,000 500

15,001 - 18,000 300

18,001 - 35,000 250

(ii) The supplemental amount for a claimant with a

household income equal to or less than $30,000 and an

eligible claim for a property tax rebate for real

property taxes due and payable during a calendar year 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

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shall be ineligible for the supplemental amount under

this subparagraph.

(2) The amount of a claim for a rent rebate for rent due

and payable during a calendar year shall be determined in

accordance with the following:

Household Income

Amount of Rent in Lieu of

Property Taxes

Allowed as Rebate

$ 0 - $ 8,000 $650

8,001 - 15,000 500

15,001 - 18,000 300

18,001 - 35,000 250

(b) Limitations on claims.--

(1) No claim during a calendar year shall be allowed if

the amount of the property tax rebate or rent rebate,

computed in accordance with this section, is less than $10.

(2) During a calendar year, the maximum amount of the

property tax rebate or rent rebate shall not exceed the

lesser of:

(i) the amount of a claim under subsection (a); or

(ii) either of the following:

(A) the amount of real property taxes actually

paid; or

(B) twenty percent of the gross amount actually

paid in cash or its equivalent in any calendar year

regarding the rent in lieu of property taxes.

(3) No claim shall be allowed if the claimant is a

tenant of an owner of real property exempt from real property

taxes.

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(1) If a claim relates to a homestead owned or rented

and occupied for only a portion of a year or owned or rented

in part by a person who does not meet the qualifications for

a claimant, exclusive of an interest owned or leased by a

claimant's spouse, the department 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.

(2) A claimant who receives public assistance from the

Department of Human Services shall not be eligible for a rent

rebate during those months within which the claimant receives

public assistance.

(d) Government subsidies.--Rent in lieu of property taxes

shall not include subsidies provided by or through a

governmental agency.

Section 2905-I. Filing of claim.

(a) General rule.--Except as otherwise provided in

subsection (b), a claim must be filed with the department on or

before June 30 of the year following the end of the calendar

year in which real property taxes or rent in lieu of property

taxes was due and payable.

(b) Exception.--A claim filed after the June 30 deadline

until December 31 of the same calendar year shall be accepted by

the secretary if funds are available to pay the benefits to the

late filing claimant.

earlier than July 1 of the calendar year in which the claim was

filed.

(d) Eligibility of claimants.--

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(1) Only one claimant from a homestead each year shall

be entitled to the property tax rebate or rent rebate.

(2) 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 determine who the

claimant shall be, the department shall determine to whom the

property tax rebate or rent rebate is to be paid.

Section 2906-I. Proof of claim.

(a) Contents.--Each claim shall include:

(1) A DD214 or DD215, issued within the last three

years.

(2) The size and nature of the property claimed as a

homestead.

(3) Rent receipts, tax receipt or other proof that the

real property taxes on the homestead have been paid or that

the rent in connection with the occupancy of a homestead has

been paid.

(4) Other information as required by the department.

(b) Direct payment of taxes or rent not required.--Rent or

real property taxes do not need to have been paid directly by

the claimant if the rent or real property taxes have been paid

on or before the filing of the claim.

Section 2907-I. Incorrect claim.

If on audit of a claim the department finds the claim to have

been incorrectly determined, the department shall redetermine

the correct amount of the claim and shall notify the claimant of

the reason for the redetermination and the amount of the

corrected claim.

Section 2908-I. Funds for payment of claims.

(a) Establishment.--The Veterans Property Tax Rebate and

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Rent Rebate Assistance Account is established as a restricted

account in the State Treasury. The account shall be for the

purpose of funding property tax rebates and rent rebates under

this article.

(b) Transfer.--The sum of $40,000,000 is transferred from

the General Fund to the account.

appropriated on a continuing basis to the Department of Revenue

for use in funding property tax rebates and rent rebates as

specified under this article.

Section 2909-I. Rules and regulations and procedures generally.

(a) Promulgation and administration.--

(1) The secretary shall prescribe necessary rules and

regulations to carry out the provisions of this article, in

consultation with the Secretary of Community and Economic

Development.

(2) The department shall receive all applications,

determine the eligibility of claimants, hear appeals,

disburse payments and make available suitable forms for the

filing of claims.

(b) Report to General Assembly.--In addition to any rules

and regulations prescribed under subsection (a), the department

shall collect the following information and issue a report

including the information to the chairperson and minority

chairperson of the Appropriations Committee of the Senate and

the chairperson and minority chairperson of the Appropriations

Committee of the House of Representatives by September 30, 2025,

and September 30 of each year thereafter:

(1) The total number of claims under this article made

in the fiscal year in which the report is issued, categorized

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by school district and by county.

(2) The total amount of rebates under this article paid

in the fiscal year in which the report is issued, categorized

by school district and by county.

Section 2910-I. Fraudulent claims and conveyances to obtain

benefits.

(a) Civil penalty.--If a claim is excessive or otherwise

fraudulent, the claim shall be disallowed in full, and a penalty

of 25% of the amount claimed shall be imposed. The penalty and

the amount of the disallowed claim, if the claim has been paid,

shall bear interest at the rate of 1.5% per month from the date

of the claim until repaid.

(b) Criminal penalty.--A claimant and any person who assists

in the preparation or filing of the claim described in

subsection (a) commits a misdemeanor of the third degree and,

upon conviction thereof, shall be sentenced to pay a fine not

exceeding $1,000 or to imprisonment not exceeding one year, or

both.

disallowed if the claimant received title to the homestead

primarily for the purpose of receiving a property tax rebate.

Section 2911-I. Petition for redetermination.

(a) Right to file.--If the department denies, corrects or

takes any other adverse action regarding a claim, the claimant

may, within 90 days after the date that the department mailed

written notice to the claimant of the adverse action, file with

the department a petition for redetermination on a form supplied

by the department.

(b) Contents.--The petition under subsection (a) shall:

(1) State the grounds upon which the claimant alleges

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that the action is erroneous or unlawful, in whole or part.

(2) Contain an affidavit or affirmation that the facts

contained in the petition are true and correct.

filing the petition under subsection (a) may be allowed for

cause but may not exceed 120 days.

(d) Hearings.--

(1) Subject to subsection (e), the department shall hold

any necessary hearing on petitions under subsection (a).

(2) The department shall provide the claimant notice of

any hearing on the claimant's petition under subsection (a).

Notice shall include the date, time and place of the hearing.

(e) Time period for determination.--Within six months after

receiving a claimant's petition under subsection (a), the

department shall dispose of the matters raised in the petition

and shall mail notice to the claimant of the department's

determination.

Section 2912-I. Review by board.

(a) Right to review.--Within 90 days after the date of

official receipt by the claimant of notice mailed by the

department of its decision under section 2911-I, the claimant

who is adversely affected by the decision may by petition

request the board to review the action.

(b) Effect of no decision from department.--

(1) Failure of the department to officially notify the

claimant of a decision within the six-month period under

section 2911-I(e) shall act as a denial of the petition.

(2) A petition for review may be filed with the board

within 120 days after written notice is officially received

by the claimant that the department has failed to dispose of

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the petition within the six-month period.

for review under this section shall state the reasons for review

or shall incorporate by reference the petition for

redetermination under section 2911-I. The petition shall be

supported by affidavit that the facts stated in the petition for

review are correct and true.

(d) Decision.--

(1) The board shall dispose of each petition for review

under this section within six months after the petition has

been received.

(2) If the board fails to dispose of a petition for

review within six months, the action taken by the department

regarding the petition for redetermination shall be deemed

sustained.

(3) The board may sustain the action taken by the

department on the petition for redetermination or may take

other action as the board deems necessary and consistent with

provisions of this article.

(e) Notice.--Written notice of the action of the board on a

claimant's petition for review under this section shall be

mailed to the department and the claimant.

Section 2913-I. Appeal.

A claimant aggrieved by a decision of the board may appeal

the decision of the board in the manner provided by law for

appeals from decisions of the board in tax cases.

Section 2. This act shall take effect July 1, 2024, or

immediately, whichever is later.

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