H1600B2811A05510 DMS:JMM 01/28/08 #90 A05510
AMENDMENTS TO HOUSE BILL NO. 1600
Sponsor: REPRESENTATIVE SEIP
Printer's No. 2811
1 Amend Title, page 1, line 1, by striking out "and"
2 Amend Title, page 1, line 2, by removing the period after
3 "Fund" and inserting
4 ; and providing for local senior citizen property tax
5 and rent rebates and for the powers and duties of the
6 Department of Community and Economic Development.
7 Amend Bill, page 10, by inserting between lines 2 and 3
8 CHAPTER 13
9 LOCAL SENIOR CITIZEN PROPERTY TAX AND RENT REBATES
10 Section 1301. Scope of chapter.
11 This chapter authorizes local senior citizen property tax and
12 rent rebates.
13 Section 1302. Definitions.
14 The following words and phrases when used in this chapter
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Claimant." Any of the following who, during all or part of
18 a calendar year in which real property taxes, rent and inflation
19 costs were due and payable, files a claim for property tax
20 rebate or rent rebate in lieu of property taxes and inflation
21 dividend:
22 (1) A person who was 65 years of age or older, or whose
23 spouse, if a member of the household, was 65 years of age or
24 older.
25 (2) A widow or widower who was 50 years of age or older.
26 (3) A permanently disabled person 18 years of age or
27 older.
28 "Department." The Department of Community and Economic
29 Development of the Commonwealth.
30 "Homestead." As defined under section 1303 of the act of
31 June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
32 Taxpayer Relief Act.
33 "Household income." All income received by the claimant and
34 the claimant's spouse while residing in the homestead during the
35 calendar year for which a rebate and dividend are claimed.
36 "Income." Except for surplus food or other relief in kind
37 supplied by a governmental agency or property tax, rent rebate
38 or inflation dividend, all income from whatever source derived,
39 including all of the following:
1 (1) Salaries, wages, bonuses and commissions.
2 (2) Income from self-employment.
3 (3) Alimony, support money, cash public assistance and
4 relief.
5 (4) The gross amount of any pensions or annuities,
6 including 50% of railroad retirement benefits.
7 (5) Fifty percent of all benefits, except Medicare
8 benefits, received under the Social Security Act (49 Stat.
9 620, 42 U.S.C. § 301 et seq.).
10 (6) All benefits received under State unemployment
11 insurance laws and veterans' disability payments.
12 (7) All interest received from the Federal or any state
13 government, or any instrumentality or political subdivision
14 thereof.
15 (8) Realized capital gains.
16 (9) Rentals.
17 (10) Workers' compensation and the gross amount of loss
18 of time, insurance benefits, life insurance benefits and
19 proceeds except the first $5,000 of the total of death
20 benefit payments.
21 (11) Gifts of cash or property, other than transfers by
22 gift between members of a household, in excess of a total
23 value of $300.
24 "Local taxing authority." A political subdivision of the
25 Commonwealth which shall include a municipality, township,
26 county or school district.
27 "Owner." A person in possession under a contract of sale,
28 deed of trust, life estate, joint tenancy or tenancy in common
29 or by reason of statutes of descent and distribution.
30 "Permanently disabled person." A person who is unable to
31 engage in any substantial gainful activity by reason of any
32 medically determinable physical or mental impairment which can
33 be expected to continue indefinitely.
34 "Program." A local senior citizen property tax and rent
35 rebate program established by a local taxing authority.
36 "Real property taxes." All taxes on a homestead, except for
37 municipal assessments, delinquent charges and interest, due and
38 payable during a calendar year.
39 "Rent rebate in lieu of property taxes." Twenty percent of
40 the gross amount actually paid in cash or its equivalent in any
41 calendar year to a landlord in connection with the occupancy of
42 a homestead by a claimant, irrespective of whether the amount
43 constitutes payment solely for the right of occupancy or
44 otherwise.
45 "Social Security Act." The Social Security Act (49 Stat.
46 620, 42 U.S.C. § 301 et seq.).
47 "Widow" or "widower." The surviving wife or the surviving
48 husband of a deceased individual who has not remarried.
49 Section 1303. Authority.
50 (a) General rule.--
51 (1) A local taxing authority may establish a local
52 senior citizen property tax and rent rebate program in
53 accordance with this chapter or continue an existing program
54 under subsection (b).
55 (2) A program established under this subsection shall
56 expire one year from the date of establishment.
57 (b) Existing programs.--The General Assembly recognizes the
58 authority of a local taxing authority to establish and operate a
59 local senior citizens property tax and rent rebate program which
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1 is in existence on the effective date of this subsection.
2 (c) Prohibition.--No property tax or rent rebate may be
3 issued by a local taxing authority except in conformity with
4 subsection (a).
5 (d) Notification.--
6 (1) A local taxing authority shall inform all local
7 taxpaying citizens of a program within 60 days of
8 authorization of the program by the local taxing authority.
9 (2) In no case shall a school district notify local
10 taxpaying citizens later than May 1 for a program that takes
11 effect in the immediately following fiscal year.
12 (3) All other local taxing authorities shall notify
13 local taxpaying citizens of a program by November 1 for a
14 program that takes effect in the immediately following fiscal
15 year.
16 (4) Notification shall include information regarding the
17 following:
18 (i) Eligibility for the program.
19 (ii) The application process.
20 (iii) Rebate amount.
21 (iv) How the rebate will be provided to eligible
22 claimants.
23 (e) Finding.--Prior to establishing a local senior citizen
24 property tax and rent rebate program, a local taxing authority
25 must make a finding that no increase in any taxes imposed by the
26 local taxing authority will occur as a result of establishing
27 and operating the program.
28 Section 1304. Property tax and rent rebate.
29 (a) Income eligibility and rebates.--Income eligibility and
30 the maximum amount of property tax and rent rebates shall be
31 determined by the local taxing authority as follows:
32 (1) The maximum annual household income for property tax
33 rebates shall not exceed $35,000, and the annual rebate may
34 be any amount up to and including the amount of the maximum
35 rebate under section 1304 of the act of June 27, 2006 (1st
36 Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
37 (2) The maximum annual household income for rent rebates
38 shall not exceed $15,000, and the annual rebate may be any
39 amount up to and including the amount of the maximum rebate
40 under section 1304 of the Taxpayer Relief Act.
41 (b) Limits.--No claim shall be allowed if the amount of
42 property tax or rent rebate computed in accordance with this
43 section is less than $10.
44 (c) Exemption.--No claim shall be allowed if the claimant is
45 a tenant of an owner of real property exempt from real property
46 taxes.
47 (d) Apportionment.--A local taxing authority shall apportion
48 the real property taxes or rent in accordance with the period or
49 degree of ownership or leasehold or eligibility of the claimant
50 in determining the amount of rebate for which a claimant is
51 eligible if any of the following apply:
52 (1) A homestead is owned or rented and occupied for only
53 a portion of a year.
54 (2) A homestead is owned or rented in part by a person
55 who does not meet the qualifications for a claimant,
56 exclusive of any interest owned or leased by a claimant's
57 spouse.
58 (3) A claimant is a widow or widower who remarries.
59 (4) A claimant is a permanently disabled person who is
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1 no longer disabled.
2 (e) Public assistance.--A claimant who receives public
3 assistance from the Department of Public Welfare shall not be
4 eligible for rent rebate in lieu of property taxes or an
5 inflation dividend during those months during which the claimant
6 receives public assistance.
7 (f) Rent.--Rent shall not include subsidies provided by or
8 through a governmental agency.
9 Section 1305. Filing of claim.
10 A claim for property tax or rent rebate shall be filed with
11 the local taxing authority on a date prescribed by the local
12 taxing authority for the preceding calendar year in which real
13 property taxes or rent was due and payable. Only one claimant
14 from a homestead each year shall be entitled to the property tax
15 or rent rebate and inflation dividend. If two or more persons
16 are able to meet the qualifications for a claimant, they may
17 determine who the claimant shall be. If they are unable to
18 agree, the local taxing authority shall determine to whom the
19 rebate is to be paid.
20 Section 1306. Proof of claim.
21 (a) Inclusion with claim.--Each claim shall include
22 reasonable proof of household income, the size and nature of the
23 property claimed as a homestead and the rent or tax receipt or
24 other proof that the real property taxes on the homestead have
25 been paid, or rent in connection with the occupancy of a
26 homestead has been paid. If the claimant is a widow or widower,
27 a declaration of such status in such manner as prescribed by the
28 local taxing authority shall be included.
29 (b) Social Security determination.--Proof that a claimant is
30 eligible to receive disability benefits under the Social
31 Security Act shall constitute proof of disability under this
32 chapter. No person who has been found not to be disabled by the
33 Social Security Administration shall be granted a rebate or
34 dividend under this chapter. A claimant not covered under the
35 Social Security Act shall be examined by a physician designated
36 by the local taxing authority and such status determined using
37 the same standards used by the Social Security Administration.
38 (c) Time of payment.--It shall not be necessary that taxes
39 or rent were paid directly by the claimant if the rent or taxes
40 have been paid when the claim is filed.
41 (d) Age.--The first claim filed shall include proof that the
42 claimant or the claimant's spouse was 65 years of age or older
43 or 50 years of age or older in the case of a widow or widower,
44 during the calendar year in which real property taxes or rent
45 was due and payable.
46 Section 1307. Incorrect claim.
47 Whenever on audit of any claim the local taxing authority
48 finds the claim to have been incorrectly determined, it shall
49 redetermine the correct amount of the claim and notify the
50 claimant of the reason of the redetermination and the amount of
51 the corrected claim.
52 Section 1308. Funds for payment of claims.
53 Approved claims shall be paid from the local taxing
54 authority's general fund.
55 Section 1309. Petition for redetermination.
56 Any claimant whose claim is either denied, corrected or
57 otherwise adversely affected by the local taxing authority may
58 file with the local taxing authority a petition for
59 redetermination on forms supplied by the local taxing authority
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1 within 90 days after the date of mailing of written notice by
2 the local taxing authority of the action. The local taxing
3 authority shall, within six months after receiving a filed
4 petition for redetermination, dispose of the matters raised by
5 the petition and mail notice of the local taxing authority's
6 decision to the claimant.
7 Section 1310. Reporting.
8 Local taxing authorities shall report as follows:
9 (1) A local taxing authority shall notify the department
10 of authorizing a program on a form prescribed by the
11 department in section 1311(b).
12 (2) A school district shall notify the department by
13 June 1 for a program that takes effect in the immediately
14 following fiscal year.
15 (3) All other local taxing authorities shall notify the
16 department by December 1 for a program that takes effect in
17 the immediately following fiscal year.
18 Section 1311. Duties of department.
19 (a) Publication of list on Internet.--No later than 120 days
20 after the effective date of this section, the department shall
21 create and maintain a list of the names and Internet websites of
22 all local taxing authorities that implement a program. The list
23 shall be updated annually, shall be accessible to the public
24 through the department's publicly accessible Internet website
25 and may be organized to correspond with any existing database
26 the department currently maintains. The list shall contain links
27 to the local taxing authorities' official websites, if any, for
28 further information.
29 (b) Development of form.--The department shall develop and
30 prescribe a form for local taxing authorities to notify the
31 department of programs.
32 (c) Report.--The department shall prepare a report on the
33 use of local taxing authorities' programs 24 months after the
34 effective date of this section and annually thereafter. The
35 report shall be published on the department's publicly
36 accessible Internet website. Notification of the report's
37 publication shall be provided to the President pro tempore of
38 the Senate, the Majority Leader of the Senate, the Minority
39 Leader of the Senate, the chairman and minority chairman of the
40 Aging and Youth Committee and the chairman and minority chairman
41 of the Finance Committee of the Senate, the Speaker of the House
42 of Representatives, the Majority Leader of the House of
43 Representatives, the Minority Leader of the House of
44 Representatives, the chairman and minority chairman of the Aging
45 and Older Adult Services Committee and the chairman and minority
46 chairman of the Finance Committee of the House of
47 Representatives.
48 Section 1312. Increase in tax.
49 A local taxing authority may not increase any taxes imposed
50 by the local taxing authority in order to fund property tax and
51 rent rebates under this chapter.
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