1Amending Title 53 (Municipalities Generally) of the Pennsylvania
2Consolidated Statutes, in assessments of person and property,
3providing for real estate tax deferral for elderly
4homeowners.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Subchapter C heading of Chapter 85 of Title 53 of
8the Pennsylvania Consolidated Statutes is amended to read:

9Subchapter C

10[(Reserved)]

11Real Estate Tax Deferral for Elderly Homeowners

12Section 2. Chapter 85 of Title 53 is amended by adding
13sections immediately after Subchapter C heading to read:

14§ 8551. Scope of chapter.

15This subchapter relates to deferrals of real estate taxes for
16certain elderly homeowners.

17§ 8552. Authority.

18All political subdivisions shall grant tax deferrals in the
19manner provided in this subchapter.

1§ 8553. Eligibility and length of deferral.

2(a) Deferral for five years.--The following claimants shall
3be eligible for a real estate tax deferral of five years:

4(1) A sole homeowner who has reached at least 65 years
5of age.

6(2) Joint homeowners whose ages add up to at least 130
7years.

8(b) Permanent deferral.--The following claimants shall be
9eligible for a permanent real estate tax deferral:

10(1) A sole homeowner who has reached at least 75 years
11of age.

12(2) Joint homeowners whose ages add up to at least 150
13years.

14(c) Income eligibility.--A claimant shall be eligible for a
15tax deferral if the claimant and the claimant's spouse have a
16household income not exceeding the maximum household income
17eligibility limitations set forth in Chapter 13 of the act of
18June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
19Taxpayer Relief Act.

20(c) Ineligible homeowners.--Three or more joint homeowners
21and corporate homeowners shall not be eligible for a real estate
22tax deferral under this subchapter.

23§ 8554. Application procedure.

24(a) Initial application.--Any person eligible for a tax
25deferral under this subchapter may apply annually to the
26political subdivision. In the initial year of application, the
27following information shall be provided in the manner required
28by the political subdivision:

29(1) A statement of request for the tax deferral.

30(2) A certification that the applicant or the applicant

1and his or her spouse jointly are the owners in fee simple of
2the homestead upon which the real property taxes are imposed.

3(3) A certification that the applicant's homestead is
4adequately insured under a homeowner's policy to the extent
5of all outstanding liens.

6(4) Receipts showing timely payment of the immediately
7preceding year's nondeferred real property tax liability.

8(5) Proof of income eligibility under section 8574
9(relating to income eligibility).

10(6) Proof of age requirement under section 8552
11(relating to authority).

12(7) Any other information required by the political
13subdivision.

14(b) Subsequent years.--After the initial entry into the
15program, a claimant shall remain eligible for tax deferral in
16subsequent years so long as the claimant continues to meet the
17eligibility requirements of this subchapter.

18§ 8555. Attachment and satisfaction of lien.

19(a) Nature of lien.--All taxes deferred under this
20subchapter shall constitute a prior lien on the homestead of the
21claimant in favor of the political subdivision and shall attach
22as of the date and in the same manner as other real estate tax
23liens. The deferred taxes shall be collected as other real
24estate tax liens, but the deferred taxes shall be due, payable
25and delinquent only as provided in subsection (b).

26(b) Payment.--

27(1) All or part of the deferred taxes may at any time be
28paid to the political subdivision.

29(2) In the event that the deferred taxes are not paid by
30the claimant or the claimant's spouse during his or her

1lifetime or during their continued ownership of the
2homestead, the deferred taxes shall be paid either:

3(i) prior to the conveyance of the homestead to any
4third party; or

5(ii) prior to the passing of the legal or equitable
6title, either by will or by statute, to the heirs of the
7claimant or the claimant's spouse.

8(3) The surviving spouse of a claimant shall not be
9required to pay the deferred taxes by reason of his or her
10acquisition of the homestead due to death of the claimant as
11long as the surviving spouse maintains his or her domicile in
12the property. The surviving spouse may continue to
13participate in the tax deferral program in subsequent years
14provided he or she is eligible under the provisions of this
15subchapter.

16§ 8556. Preemption.

17This subchapter preempts any local or state regulation or law
18that provides for the deferral of real estate taxes for elderly
19homeowners or that is in anyway inconsistent with this
20subchapter.

21Section 3. The following acts and parts of acts are repealed
22insofar as they are inconsistent with this act:

23(1) The act of May 16, 1923 (P.L.207, No.153), entitled
24"An act providing when, how, upon what property, and to what
25extent, liens shall be allowed for taxes and for municipal
26improvements, for the removal of nuisances, and for water
27rents or rates, sewer rates, and lighting rates; for the
28procedure upon claims filed therefor; the methods for
29preserving such liens and enforcing payment of such claims;
30the effect of judicial sales of the properties liened; the

1distribution of the proceeds of such sales, and the
2redemption of the property therefrom; for the lien and
3collection of certain taxes heretofore assessed, and of
4claims for municipal improvements made and nuisances removed,
5within six months before the passage of this act; and for the
6procedure on tax and municipal claims filed under other and
7prior acts of Assembly."

8(2) The act of June 23, 1931 (P.L.932, No.317), known as
9the Third Class City Code.

10(3) The act of July 7, 1947 (P.L.1368, No.542), known as
11the Real Estate Tax Sale Law.

12(4) The act of June 28, 1967 (P.L.122, No.32), entitled
13"An act authorizing and empowering city treasurers of cities
14of the second class A to sell at public sale, lands or real
15estate upon which the taxes, assessed and levied by the city,
16are delinquent and unpaid; fixing the interests of all taxing
17authorities where such lands are purchased by the city;
18providing for the distribution of moneys received as income
19from or resale of such lands; and providing for a method of
20reselling such lands purchased, by the city, or by the city
21at any sale for the nonpayment of taxes, free and clear of
22all mortgages, ground rents, interest in or claims against
23said lands; authorizing an agreement between cities of the
24second class A purchasing property at treasurer's sales and
25all other taxing authorities having an interest in such lands
26with respect to the distribution of rents, income and the
27proceeds of the resale of such lands."

28(5) The act of October 11, 1984 (P.L.876, No.171), known
29as the Second Class City Treasurer's Sale and Collection Act.

30(6) Any and all other acts.

1Section 4. This act shall take effect in 60 days.