See other bills
under the
same topic
PRINTER'S NO. 965
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
768
Session of
2017
INTRODUCED BY COSTA, HUGHES, BLAKE, FONTANA, TARTAGLIONE,
FARNESE, YUDICHAK, HAYWOOD AND BREWSTER, JUNE 15, 2017
REFERRED TO FINANCE, JUNE 15, 2017
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," in sales and use tax, further providing for
imposition of tax, repealing provisions relating to
computation of tax, providing for tax table and further
providing for alternate imposition of tax and credits and for
hotel occupancy tax imposition; in personal income tax,
further providing for imposition of tax; providing for school
district property tax and rent rebates; and establishing the
School District Property Tax and Rent Rebate Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 202 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended to read:
Section 202. Imposition of Tax.--(a) There is hereby
imposed upon each separate sale at retail of tangible personal
property or services, as defined herein, within this
Commonwealth a tax of six and six-tenths per cent of the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
purchase price, which tax shall be collected by the vendor from
the purchaser, and shall be paid over to the Commonwealth as
herein provided.
(b) There is hereby imposed upon the use, on and after the
effective date of this article, within this Commonwealth of
tangible personal property purchased at retail on or after the
effective date of this article, and on those services described
herein purchased at retail on and after the effective date of
this article, a tax of six and six-tenths per cent of the
purchase price, which tax shall be paid to the Commonwealth by
the person who makes such use as herein provided, except that
such tax shall not be paid to the Commonwealth by such person
where he has paid the tax imposed by subsection (a) of this
section or has paid the tax imposed by this subsection (b) to
the vendor with respect to such use. [The tax at the rate of six
per cent imposed by this subsection shall not be deemed
applicable where the tax has been incurred under the provisions
of the "Tax Act of 1963 for Education."]
(c) Notwithstanding any other provisions of this article,
the tax with respect to telecommunications service within the
meaning of clause (m) of section 201 of this article shall,
except for telegrams paid for in cash at telegraph offices, be
computed at the rate of six and six-tenths per cent upon the
total amount charged to customers for such services,
irrespective of whether such charge is based upon a flat rate or
upon a message unit charge, but in no event shall charges for
telephone calls paid for by inserting money into a telephone
accepting direct deposits of money to operate be subject to this
tax. A telecommunications service provider shall have no
responsibility or liability to the Commonwealth for billing,
20170SB0768PN0965 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
collecting or remitting taxes that apply to services, products
or other commerce sold over telecommunications lines by third-
party vendors. To prevent actual multistate taxation of
interstate telecommunications service, any taxpayer, upon proof
that the taxpayer has paid a similar tax to another state on the
same interstate telecommunications service, shall be allowed a
credit against the tax imposed by this section on the same
interstate telecommunications service to the extent of the
amount of such tax properly due and paid to such other state.
(d) Notwithstanding any other provisions of this article,
the sale or use of food and beverages dispensed by means of coin
operated vending machines shall be taxed at the rate of six and
six-tenths per cent of the receipts collected from any such
machine which dispenses food and beverages heretofore taxable.
(e) (1) Notwithstanding any provisions of this article, the
sale or use of prepaid telecommunications evidenced by the
transfer of tangible personal property shall be subject to the
tax imposed by subsections (a) and (b).
(2) The sale or use of prepaid telecommunications not
evidenced by the transfer of tangible personal property shall be
subject to the tax imposed by subsections (a) and (b) and shall
be deemed to occur at the purchaser's billing address.
(3) Notwithstanding clause (2), the sale or use of prepaid
telecommunications service not evidenced by the transfer of
tangible personal property shall be taxed at the rate of six and
six-tenths per cent of the receipts collected on each sale if
the service provider elects to collect the tax imposed by this
article on receipts of each sale. The service provider shall
notify the department of its election and shall collect the tax
on receipts of each sale until the service provider notifies the
20170SB0768PN0965 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
department otherwise.
(e.1) (1) Notwithstanding any other provision of this
article, the sale or use of prepaid mobile telecommunications
service evidenced by the transfer of tangible personal property
shall be subject to the tax imposed by subsections (a) and (b).
(2) The sale or use of prepaid mobile telecommunications
service not evidenced by the transfer of tangible personal
property shall be subject to the tax imposed by subsections (a)
and (b) and shall be deemed to occur at the purchaser's billing
address or the location associated with the mobile telephone
number or the point of sale, whichever is applicable.
(3) Notwithstanding clause (2), the sale or use of prepaid
mobile telecommunications service not evidenced by the transfer
of tangible personal property shall be taxed at the rate of six
and six-tenths per cent of the receipts collected on each sale
if the service provider elects to collect the tax imposed by
this article on receipts of each sale. The service provider
shall notify the department of its election and shall collect
the tax on receipts of each sale until the service provider
notifies the department otherwise.
(f) Notwithstanding any other provision of this article, tax
with respect to sales of prebuilt housing shall be imposed on
the prebuilt housing builder at the time of the prebuilt housing
sale within this Commonwealth and shall be paid and reported by
the prebuilt housing builder to the department in the time and
manner provided in this article: Provided, however, That a
manufacturer of prebuilt housing may, at its option, precollect
the tax from the prebuilt housing builder at the time of sale to
the prebuilt housing builder. In any case where prebuilt housing
is purchased and the tax is not paid by the prebuilt housing
20170SB0768PN0965 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
builder or precollected by the manufacturer, the prebuilt
housing purchaser shall remit tax directly to the department if
the prebuilt housing is used in this Commonwealth without regard
to whether the prebuilt housing becomes a real estate structure.
(g) Notwithstanding any other provisions of this article and
in accordance with the Mobile Telecommunications Sourcing Act (4
U.S.C. ยง 116), the sale or use of mobile telecommunications
services which are deemed to be provided to a customer by a home
service provider under section 117(a) and (b) of the Mobile
Telecommunications Sourcing Act shall be subject to the tax of
six and six-tenths per cent of the purchase price, which tax
shall be collected by the home service provider from the
customer, and shall be paid over to the Commonwealth as herein
provided if the customer's place of primary use is located
within this Commonwealth, regardless of where the mobile
telecommunications services originate, terminate or pass
through. For purposes of this subsection, words and phrases used
in this subsection shall have the same meanings given to them in
the Mobile Telecommunications Sourcing Act.
Section 2. Section 203 of the act is repealed:
[Section 203. Computation of Tax.--The amount of tax imposed
by section 202 of this article shall be computed as follows:
(a) If the purchase price is ten cents (10ยข) or less, no tax
shall be collected.
(b) If the purchase price is eleven cents (11ยข) or more but
less than eighteen cents (18ยข), one cent (1ยข) shall be
collected.
(c) If the purchase price is eighteen cents (18ยข) or more
but less than thirty-five cents (35ยข), two cents (2ยข) shall be
collected.
20170SB0768PN0965 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(d) If the purchase price is thirty-five cents (35ยข) or more
but less than fifty-one cents (51ยข), three cents (3ยข) shall be
collected.
(e) If the purchase price is fifty-one cents (51ยข) or more
but less than sixty-eight cents (68ยข), four cents (4ยข) shall be
collected.
(f) If the purchase price is sixty-eight cents (68ยข) or more
but less than eighty-five cents (85ยข), five cents (5ยข) shall be
collected.
(g) If the purchase price is eighty-five cents (85ยข) or more
but less than one dollar and one cent ($1.01), six cents (6ยข)
shall be collected.
(h) If the purchase price is more than one dollar ($1.00),
six per centum of each dollar of purchase price plus the above
bracket charges upon any fractional part of a dollar in excess
of even dollars shall be collected.]
Section 3. The act is amended by adding a section to read:
Section 203.1. Tax Table.--Within thirty days of the
effective date of this section, the department shall prepare and
publish as a notice in the Pennsylvania Bulletin a table setting
forth the amount of tax imposed under section 202 for purchase
prices that result in a tax containing a fraction of less than
one cent (1ยข).
Section 4. Sections 205, 210 and 302 of the act are amended
to read:
Section 205. Alternate Imposition of Tax; Credits.--(a) If
any person actively and principally engaged in the business of
selling new or used motor vehicles, trailers or semi-trailers,
and registered with the department in the "dealer's class,"
acquires a motor vehicle, trailer or semi-trailer for the
20170SB0768PN0965 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
purpose of resale, and prior to such resale, uses the motor
vehicle, trailer or semi-trailer for a taxable use under this
act, the person may pay a tax equal to six and six-tenths per
cent of the fair rental value of the motor vehicle, trailer or
semi-trailer during such use. This section shall not apply to
the use of a vehicle as a wrecker, parts truck, delivery truck
or courtesy car.
(b) A commercial aircraft operator who acquires an aircraft
for the purpose of resale, or lease, or is entitled to claim
another valid exemption at the time of purchase, and subsequent
to such purchase, periodically uses the same aircraft for a
taxable use under this act, may elect to pay a tax equal to six
and six-tenths per cent of the fair rental value of the aircraft
during such use.
Section 210. Imposition of Tax.--There is hereby imposed an
excise tax of six and six-tenths per cent of the rent upon every
occupancy of a room or rooms in a hotel in this Commonwealth,
which tax shall be collected by the operator from the occupant
and paid over to the Commonwealth as herein provided.
Section 302. Imposition of Tax.--(a) Every resident
individual, estate or trust shall be subject to, and shall pay
for the privilege of receiving each of the classes of income
hereinafter enumerated in section 303, a tax upon each dollar of
income received by that resident during that resident's taxable
year at the rate [of three and seven hundredths per cent]
prescribed under subsection (c).
(b) Every nonresident individual, estate or trust shall be
subject to, and shall pay for the privilege of receiving each of
the classes of income hereinafter enumerated in section 303 from
sources within this Commonwealth, a tax upon each dollar of
20170SB0768PN0965 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
income received by that nonresident during that nonresident's
taxable year at the rate [of three and seven hundredths per
cent] prescribed under subsection (c).
(c) The rate of tax to be imposed under this section shall
be as follows:
(1) Three and seven hundredths per cent for taxable
years commencing with or within calendar year 2004 through
the first half of the taxable year commencing with or within
calendar year 2017.
(2) Three and ninety-five hundredths per cent for the
second half of the taxable year commencing with or within
calendar year 2017 and each taxable year thereafter.
Section 5. The act is amended by adding an article to read:
ARTICLE XXIX-H
SCHOOL DISTRICT PROPERTY TAX AND RENT REBATES
Section 2901-H. Scope of article.
This article relates to school district property tax and rent
rebates.
Section 2902-H. 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:
"Assessor." The chief assessor of a county, the equivalent
position in a home rule county or the equivalent position in a
city of the third class that performs its own assessments of
real property.
"Board." The Board of Finance and Revenue.
"City of the first class amount." The amount of the maximum
rebate multiplied by the number of homestead exclusions awarded,
as determined by the assessor and certified by the department in
20170SB0768PN0965 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a city of the first class.
"Claim." A rebate or a rent rebate authorized under this
article.
"Claimant." A person who files a claim for a rebate or rent
rebate.
"Department." The Department of Revenue of the Commonwealth.
"Fund." The School District Property Tax and Rent Rebate
Fund established under section 2912-H.
"Homeowner." An owner of a homestead who is:
(1) an individual who is a natural person domiciled in
this Commonwealth;
(2) a grantor who has placed real property in a
revocable trust as long as the grantor is a natural person
domiciled in this Commonwealth; or
(3) a partner or shareholder of a family farm business,
as defined in section 1101-C and the partner or shareholder
is a natural person domiciled in this Commonwealth.
"Homestead." The owner-occupied, primary residence and the
parcel of land within this Commonwealth on which the residence
is located. The term includes other improvements located on the
parcel. If a portion of the structure is used for a
nonresidential purpose, the homestead is equal to that portion
of the property used as the primary residence of the owner-
occupant. The term shall have no effect concerning the issue of
whether the property constitutes a homestead or homestead
property under any other act.
"Household income." Income received by a claimant and each
other individual residing in the homestead during the calendar
year for which a rebate is claimed.
"Income." As defined in Chapter 13 of the Taxpayer Relief
20170SB0768PN0965 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Act.
"Real property tax." The total real property tax imposed by
a school district on a homestead for the tax year. Real property
tax authorized by a city of the first class for a school
district of the first class shall constitute taxes imposed by a
school district for the purposes of this definition. The term
does not include payments made in lieu of taxes or any penalties
or interest paid in connection with the tax.
"Rebate." An amount equal to 100% of the real property tax
paid, up to $2,090, on the assessed value of a homestead to a
school district for the tax year.
"Rent rebate." An amount equal to 100% of the rent paid for
the tax year, except that no rebate paid pursuant to this
article shall exceed $500.
"Rental unit." A rented dwelling and as much of the land
surrounding the rental dwelling as is reasonably necessary for
the use of the dwelling as a renter-occupied primary residence
by a claimant. The term includes:
(1) Premises occupied by reason of a lease in a
cooperative housing corporation.
(2) Mobile homes which are assessed as realty for local
property tax purposes and the land, if 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 the building is built.
(4) Premises occupied by reason of the 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
20170SB0768PN0965 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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 rental, including a possessory interest, in the
dwelling, the land or both.
"Renter." An individual who is a natural person domiciled in
this Commonwealth who is the leaseholder of a rental unit and
applies for a rent rebate.
"Residence." A structure used as a place of habitation by
the owner of the structure.
"School district." A school district of the first class,
first class A, second class, third class or fourth class,
including any independent school district.
"Taxpayer Relief Act." The act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
"Tax year." A school district's 2017-2018 fiscal year and
each fiscal year thereafter during which real property tax is
due and payable.
Section 2903-H. Property tax rebate qualifications.
(a) Issuance.--A rebate shall be issued to a homeowner if:
(1) The homeowner, in complying with section 2906-H(d),
demonstrates qualification for a rebate to the satisfaction
of the department.
(2) All of the following apply:
(i) The homeowner occupied the homestead during the
tax year.
(ii) The homeowner has paid real property tax owed
on the homestead for the tax year.
(iii) The homeowner is the owner of record.
(iv) The homeowner applies as required by section
20170SB0768PN0965 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
2905-H.
(b) Multiple individuals on title.--If the title to a
homestead is held by more than one individual, a rebate shall be
issued in the name appearing on the school property tax record.
(c) Payment.--The homeowner may not be required to pay the
tax directly.
(d) Limitations.--
(1) A homeowner may not be eligible for more than one
rebate.
(2) A rebate may not exceed $2,090.
(3) A rebate may not be issued by the department to a
homeowner in a city of the first class.
Section 2904-H. Rent rebate.
(a) General rule.--Subject to subsections (c) and (d)(1), a
rent rebate shall be issued to a renter if the renter, in
complying with section 2906-H(e), demonstrates qualification for
a rent rebate to the satisfaction of the department.
(b) Schedule.--The amount of any rent rebate for rent due
and payable during calendar year 2017 and each calendar year
thereafter shall be determined in accordance with the following:
Household Income Amount of Rent Rebate Allowed
$0 - $50,000 $500
(c) Limitations on rent rebate.--
(1) No rent rebate under subsection (a) shall be allowed
if the renter obtains a rent rebate in lieu of property tax
relief under Chapter 13 of the Taxpayer Relief Act.
(2) No rent rebate under subsection (a) shall be allowed
if the renter is a child who is a dependent for purposes of
section 151 of the Internal Revenue Code of 1986 (Public Law
99-514, 26 U.S.C. ยง 151).
20170SB0768PN0965 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) Only one resident of a homestead occupied by
multiple residents may apply for a rent rebate under
subsection (a). If two or more residents are able to meet the
qualification for a renter, the residents may determine who
the renter shall be and, in the absence of a determination,
the department shall determine to whom the rent rebate is to
be paid.
(4) No rent rebate under subsection (a) shall be allowed
if the renter is a tenant of an owner of real property which
is exempt from real property taxes.
(5) No rent rebate under subsection (a) shall be allowed
if the renter is eligible for or has received a property tax
rebate under this section.
(d) Apportionment and public assistance.--
(1) In determining the amount of a rent rebate for which
a renter is eligible the department shall apportion the rent
in accordance with the period or degree of leasehold or
eligibility of the renter if any of the following apply:
(i) A rental unit is owned or rented and occupied
for only a portion of a year or is owned or rented in
part by a person who does not meet the qualifications for
a renter, exclusive of any interest owned or leased by a
renter's spouse.
(ii) The renter is a widow or widower who remarries.
(iii) The renter is a formerly disabled person who
is no longer disabled.
(2) A renter who receives public assistance from the
Department of Human Services shall not be eligible for a rent
rebate during those months within which the renter receives
public assistance.
20170SB0768PN0965 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(e) Government subsidy.--Rent does not include a subsidy
provided by or through a governmental agency.
Section 2905-H. Property tax rebate administration.
(a) Procedures.--The department shall establish
administrative and application procedures and deadlines
necessary to implement and administer this article. To
facilitate the timely implementation of this article, the
provisions of Part X of Article III and Article VII of the act
of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code,
shall not apply to this article. The department may enter into
contracts which are necessary to administer this article.
(b) List.--Each assessor shall submit to the department a
list, categorized by school district, of residential and farm
real property and owners of record as of July 1, 2017, within
its jurisdiction. The list shall include only homeowners of
record who have fully paid the real property tax owed on the
homeowner's homestead for the previous taxable year.
(c) Review.--Only lists submitted by or within 30 days of
the effective date of this article shall be reviewed by the
department. The department shall return the list of potentially
eligible homeowners to the assessor.
(d) Verification.--Within 30 days after receipt of the list
of eligible homeowners, the assessor shall verify the list and
report to the department any corrections to the list.
(e) Finalization.--The department shall finalize the list
and notify each listed homeowner, by October 20, 2017, that the
homeowner may apply for a rebate. The department shall make the
initial determination of homeowner rebate eligibility from
information submitted by the homeowner as required by this
article.
20170SB0768PN0965 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 2906-H. Claims.
(a) Duties of department.--The department shall:
(1) Make available forms for the filing of claims.
(2) Receive all applications.
(3) Determine the eligibility of homeowners or renters.
(4) Hear appeals.
(5) Disburse payments.
(b) Filing.--A claim shall be filed with the department on
or before June 30 of the year next succeeding the end of the
calendar year in which real property tax was due and payable.
(c) Exception.--A claim filed after the June 30 deadline
until December 31 of a calendar year shall be accepted by the
department as long as funds are available to pay the benefits to
the late filing homeowner.
(d) Property tax rebate application forms.--The department
shall prescribe a form on which a homeowner may apply for a
rebate. In order to qualify for a rebate, the homeowner shall
complete the form and provide the department with:
(1) Proof the property has been occupied as the
homestead during the tax year.
(2) The tax receipt or other proof that the real
property taxes on the homestead have been paid.
(e) Rent rebate application forms.--The department shall
prescribe a form on which a renter may apply for a rent rebate.
In order to qualify for a rent rebate, the renter shall complete
the form and provide the department with:
(1) Reasonable proof of household income.
(2) The size and nature of the property claimed as a
rental unit.
(3) The rent receipt or other proof that rent in
20170SB0768PN0965 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
connection with the occupancy of the rental unit has been
paid.
(4) Other information required by the department.
(f) Regulations.--The department may prescribe necessary
rules and promulgate regulations to administer the provisions of
this article.
(g) Report to General Assembly.--The department shall
collect the following information and issue a report to the
chairman and minority chairman of the Appropriations Committee
of the Senate and the chairman and minority chairman of the
Appropriations Committee of the House of Representatives by
September 30, 2017, and by September 30 of each year thereafter:
(1) The total number of claims which will be paid in the
fiscal year in which the report is issued.
(2) The total amount of claims paid in the fiscal year
in which the report is issued.
Section 2907-H. Petitions for review.
(a) Right to file.--A claimant whose application is denied,
corrected or otherwise adversely affected by the department may
file with the department a petition for redetermination on forms
supplied by the department within 90 days after the date of
mailing written notice by the department of the action.
(b) Contents.--The petition shall set forth the grounds on
which the claimant alleges that the departmental action is
erroneous or unlawful, in whole or in part, and shall contain an
affidavit or affirmation that the facts contained in the
petition are true and correct.
(c) Extension of time for filing.--
(1) An extension of time for filing the petition may be
allowed for cause but may not exceed 120 days.
20170SB0768PN0965 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) The department shall hold hearings as may be
necessary for the purpose of redetermination, and each
claimant who has duly filed a petition for redetermination
shall be notified by the department of the time when and the
place where the hearing on the homeowner's or renter's case
will be held.
(d) Time period for decision.--The department shall, within
six months after receiving a petition for redetermination,
dispose of the matters raised by the petition and shall mail
notice of the department's decision to the claimant.
Section 2908-H. 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 the department's decision on a petition for
redetermination, the homeowner or renter who is adversely
affected by the decision may by petition request the board to
review the action.
(b) Effect of no decision from department.--The failure of
the department to officially notify the claimant of a decision
within the six-month period under section 2907-H shall act as a
denial of the petition. 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 the petition within the six-month period.
(c) Contents of petition for redetermination.--A petition
for redetermination shall state the reasons upon which the
homeowner or renter relies or incorporate by reference the
petition for redetermination in which the reasons were stated.
The petition shall be supported by an affidavit that the facts
set forth are correct and true.
20170SB0768PN0965 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(d) Time period for decision.--The board shall act in
disposition of petitions within six months after the petition
was received and, in the event of failure of the board to
dispose of a petition within six months, the action taken by the
department upon the petition for redetermination shall be deemed
sustained.
(e) Relief authorized by board.--The board may sustain the
action taken by the department on the petition for
redetermination or take other action as the board deems
necessary and consistent with provisions of this article.
(f) Form of notice.--Notice of the action of the board shall
be given by mail to the department and to the claimant.
Section 2909-H. Appeal.
A claimant aggrieved by a decision of the board may appeal
from the decision of the board in the manner provided by law for
appeals from decisions of the board in tax cases.
Section 2910-H. Penalties.
(a) Civil penalty.--If a claim is excessive and is filed
with fraudulent intent, 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 the penalty is paid and the
amount of the disallowed claim is repaid.
(b) Criminal penalty.--A claimant who files a fraudulent
claim, and any person who assists in the preparation or filing
of a fraudulent claim, commits a misdemeanor of the third degree
and shall, upon conviction, be sentenced to pay a fine not
exceeding $1,000, or to imprisonment not exceeding one year, or
both.
20170SB0768PN0965 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(c) Disallowance for receipt of title.--A rebate shall be
disallowed if the homeowner received title to the homestead
primarily for the purpose of receiving a rebate.
Section 2911-H. Erroneous rebates.
(a) Determination.--Whenever on audit of a claim the
department finds the claim to have been incorrectly determined,
it shall redetermine the correct amount of the claim and notify
the claimant of the reason for the redetermination and the
amount of the corrected claim.
(b) Recovery.--If a claim has been issued in error and the
claimant fails to refund the claim upon the department's
request, the claim shall be recoverable by the department in the
same manner as provided for under Chapter 13 of the Taxpayer
Relief Act.
Section 2912-H. Fund.
(a) Establishment.--There is established within the General
Fund a restricted fund to be known as the School District
Property Tax and Rent Rebate Fund. The money in the fund is
appropriated to the department to carry out the provisions of
this article.
(b) Payment.--Except as provided in subsection (c), claims
approved by the department under this article shall be paid from
the fund.
(c) Offset.--The department may offset any claim due to a
homeowner or renter against collectible liabilities owed to the
Commonwealth by the homeowner or renter for taxes imposed under
Article III.
(d) Funding.--The following shall be deposited into the fund
established under subsection (a):
(1) An amount equal to 1% of the tax imposed under
20170SB0768PN0965 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
section 302.
(2) An amount equal to 0.25% of the tax imposed under
section 202.
(3) Any interest earned on money in the fund.
(4) Any money collected under sections 2910-H and 2911-
H.
(e) City of the first class transfer.--Beginning on July 1,
2018, and each fiscal year thereafter, prior to a claim being
paid from the fund under subsection (b), the department shall
transfer to a city of the first class, the city of the first
class amount for use in accordance with section 2913-H.
Section 2913-H. City of the first class.
A city of the first class shall use the funds provided under
section 2912-H(e) as follows:
(1) Up to $73,600,000 to increase the homestead
exclusion.
(2) Up to $196,000,000 to reduce a tax imposed on the
wages of residents and nonresidents under the authority of
the act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred
to as the Sterling Act.
(3) Up to $83,600,000 to reduce the sales tax as
authorized under section 201-B.
(4) Up to $60,000,000 to reduce the cigarette tax
authorized under 53 Pa.C.S. ยง 8722 (relating to local option
cigarette tax in school districts of the first class).
(5) Up to $24,800,000 to pension relief.
Section 2914-H. Construction.
Notwithstanding any other provision of law to the contrary, a
claim received under this article may not be considered income
under Article III or for purposes of determining eligibility for
20170SB0768PN0965 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a State government program, including those programs authorized
by Chapter 13 of the Taxpayer Relief Act, or Chapter 5 of the
act of August 26, 1971 (P.L.351, No.91), known as the State
Lottery Law.
Section 6. This act shall apply to sales and uses occurring
or commencing 120 days after the effective date of this section.
Section 7. This act shall take effect immediately.
20170SB0768PN0965 - 21 -
1
2
3
4
5
6
7