SENATE AMENDED PRIOR PRINTER'S NOS. 3134, 3163, 3207, PRINTER'S NO. 3510 3212, 3348
No. 2495 Session of 1994
INTRODUCED BY GAMBLE, LAUGHLIN, ROBINSON, MAYERNIK, CESSAR, GIGLIOTTI, ITKIN, MARKOSEK, FAJT, VAN HORNE, LEVDANSKY, KAISER, COWELL, DeLUCA, DERMODY, FARMER, McNALLY, MICHLOVIC, OLASZ, PETRONE, PISTELLA, PRESTON, PETTIT AND TRELLO, JANUARY 31, 1994
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, APRIL 11, 1994
AN ACT 1 Amending the act of December 13, 1988 (P.L.1190, No.146), <-- 2 entitled "An act establishing standards and qualifications by 3 which local tax authorities in counties of the first and 4 second class may make special real property tax relief 5 provisions," further defining "longtime owner-occupant; 6 further providing for deferral or exemption authority and for 7 conditions of deferral or exemption; providing for 8 applications for relief; and further providing for data used 9 to determine eligibility. 10 AMENDING THE ACT OF JUNE 21, 1939 (P.L.626, NO.294), ENTITLED <-- 11 "AN ACT PROVIDING FOR AND REGULATING THE ASSESSMENT AND 12 VALUATION OF ALL SUBJECTS OF TAXATION IN COUNTIES OF THE 13 SECOND CLASS; CREATING AND PRESCRIBING THE POWERS AND DUTIES 14 OF A BOARD OF PROPERTY ASSESSMENT, APPEALS AND REVIEW; 15 IMPOSING DUTIES ON CERTAIN COUNTY AND CITY OFFICERS; 16 ABOLISHING THE BOARD FOR THE ASSESSMENT AND REVISION OF TAXES 17 IN SUCH COUNTIES; AND PRESCRIBING PENALTIES," LIMITING THE 18 RATE OF INCREASE IN THE ASSESSED VALUE OF CERTAIN PROPERTY. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 Section 1. The definition of "longtime owner-occupant" in <-- 22 section 3 of the act of December 13, 1988 (P.L.1190, No.146), 23 known as the First and Second Class County Property Tax Relief
1 Act, is amended to read: 2 Section 3. Definitions. 3 The following words and phrases when used in this act shall 4 have the meanings given to them in this section unless the 5 context clearly indicates otherwise: 6 "Longtime owner-occupant." [Any] For counties of the first 7 class, any person who for at least ten continuous years has 8 owned and has occupied the same dwelling place as a principal 9 residence and domicile, or any person who for at least five 10 years has owned and occupied the same dwelling as a principal 11 residence and domicile if that person received assistance in the 12 acquisition of the property as part of a government or nonprofit 13 housing program. For counties of the second class, any person 14 who for at least three continuous years has owned and has 15 occupied the same dwelling place as a principal residence and 16 domicile. 17 * * * 18 Section 2. Sections 4 and 5 of the act are amended to read: 19 Section 4. [Deferral or exemption] Exemption authority. 20 (a) Adoption of uniform provisions.--The governing body of a 21 county of the first and second class shall have the power to 22 provide, by ordinance or resolution, for uniform special real 23 property tax provisions granting longtime owner-occupants [a 24 deferral or exemption or combination thereof] an exemption, in 25 the payment of that portion of an increase of real property 26 taxes which is due to an increase in the market value of the 27 real property as a consequence of the refurbishing or renovating 28 of other residences or the construction of new residences in 29 long-established residential areas or areas of deteriorated, 30 vacant or abandoned homes and properties. 19940H2495B3510 - 2 -
1 (b) Designation of areas.--The governing body of a county of 2 the first and second class is authorized to enact ordinances or 3 resolutions which provide for the designation of areas eligible 4 for the special real property tax provisions pursuant to this 5 act. Before enacting an ordinance or resolution which proposes 6 designating such an area, the governing body shall conduct a 7 public hearing on the proposed ordinance or resolution. 8 (c) Second class county school districts and 9 municipalities.--School districts and municipalities within 10 second class counties shall not have the authority to determine 11 their participation in this program within their taxing 12 jurisdiction. Ordinances or resolutions adopted under 13 subsections (a) and (b) shall be applicable to school districts 14 and municipalities within second class counties. 15 Section 5. Conditions of [deferral or] exemption. 16 (a) General rule.--Any [deferral or] exemption of payment of 17 an increase in real property taxes granted pursuant to this act 18 shall be limited to real property which meets all of the 19 following conditions: 20 (1) The property is owned and occupied by a longtime 21 owner-occupant. 22 (2) The property is the principal residence and domicile 23 of the longtime owner-occupant. 24 [(b) Penalties and interest.--No penalties and interest 25 shall accrue on the portion of the deferral pursuant to this 26 act. 27 (c) Financial need or age.-- 28 (1) Neither financial need nor age of the longtime 29 owner-occupant shall be a determinant of eligibility in a 30 county of the first class. 19940H2495B3510 - 3 -
1 (2) School districts and municipalities within a county 2 of the second class may determine whether financial need, 3 age, or both, of the longtime owner-occupant shall be used to 4 determine eligibility.] 5 (b) Financial need or age.--Neither financial need nor age 6 of the longtime owner-occupant shall be a determinant of 7 eligibility in a county of the first class. 8 Section 3. The act is amended by adding a section to read: 9 Section 5.1. Single application. 10 A longtime owner-occupant who seeks relief under this act 11 shall file a single application with a county of the first or 12 second class. If the application is approved by the county, all 13 municipalities and school districts within the county shall be 14 bound by the terms of the approved application. 15 Section 4. Section 6 of the act is amended to read: 16 Section 6. Retroactive application. 17 Data used by the governing body of a county of the first and 18 second class to determine if the principal residence of a 19 longtime owner-occupant is eligible for [either] a tax [deferral 20 or] exemption under the provisions of this act may be applied 21 retroactively to November 6, 1984. 22 Section 5. This act shall apply to all municipal taxes 23 levied for the fiscal year beginning January 1, 1994, and to all 24 school district taxes levied for the fiscal year beginning July 25 1, 1994. 26 Section 6. Notwithstanding any other provision of law to the 27 contrary, during calendar year 1994 municipalities and school 28 districts may reopen their budgets for fiscal years beginning on 29 January 1, 1994, in the case of municipalities, and beginning on 30 July 1, 1994, in the case of school districts, and change real 19940H2495B3510 - 4 -
1 estate tax millage rates that were adopted for their respective 2 fiscal years. 3 Section 7. This act shall take effect immediately. 4 SECTION 1. THE ACT OF JUNE 21, 1939 (P.L.626, NO.294), <-- 5 REFERRED TO AS THE SECOND CLASS COUNTY ASSESSMENT LAW, IS 6 AMENDED BY ADDING A SECTION SECTIONS TO READ: <-- 7 SECTION 9.1. (A) WHEN A COUNTY OF THE SECOND CLASS MAKES A <-- 8 REASSESSMENT OF VALUES OF REAL PROPERTY, THE ASSESSED VALUE OF 9 ANY REAL PROPERTY SHALL NOT BE INCREASED BY MORE THAN FIVE 10 PERCENT (5%) UNLESS NEWLY CONSTRUCTED IMPROVEMENTS HAVE BEEN 11 MADE TO THE REAL ESTATE OR SUBSTANTIAL IMPROVEMENTS HAVE BEEN 12 MADE TO ANY EXISTING STRUCTURES ON THE REAL ESTATE. 13 (B) THIS SECTION SHALL EXPIRE THREE YEARS AFTER THE <-- 14 EFFECTIVE DATE OF THIS SECTION. 15 SECTION 9.2. WHEN THE COUNTY MAKES ITS ANNUAL REASSESSMENT 16 AT VALUES BASED UPON AN ESTABLISHED PREDETERMINED RATIO, AS 17 REQUIRED, OR WHEN A COUNTY CHANGES ITS ESTABLISHED PREDETERMINED 18 RATIO, EACH POLITICAL SUBDIVISION, WHICH HEREINAFTER REVISES ITS 19 REAL ESTATE TAXES ON THAT REVISED ASSESSMENT OR VALUATION, SHALL 20 FOR THAT YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE PURPOSE 21 OF HAVING THE TOTAL AMOUNT OF PROPERTY TAX REVENUE RECEIVED 22 EXCLUSIVELY AS A RESULT OF THE REASSESSMENT OR CHANGE IN RATIO 23 NOT EXCEED ONE HUNDRED AND THREE PERCENT (103%) OF THE TOTAL 24 AMOUNT OF PROPERTY TAX REVENUE RECEIVED IN THE PRECEDING YEAR, 25 NOTWITHSTANDING THE INCREASED VALUATIONS OF PROPERTIES UNDER THE 26 ANNUAL REASSESSMENT SYSTEM. FOR THE PURPOSE OF DETERMINING THE 27 TOTAL AMOUNT OF REVENUE RECEIVED EXCLUSIVELY AS A RESULT OF THE 28 REASSESSMENT OR CHANGE IN RATIO FOR THE YEAR, THE AMOUNT TO BE 29 LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES OR ON 30 INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO EXISTING 19940H2495B3510 - 5 -
1 STRUCTURES SHALL NOT BE CONSIDERED. 2 SECTION 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE 3 CONTRARY, ANY MUNICIPALITY OR ANY POLITICAL SUBDIVISION WHOSE 4 BUDGET MAY BE IMPACTED MAY REOPEN ITS BUDGET AND CHANGE REAL 5 ESTATE TAX MILLAGE RATES THAT WERE ADOPTED FOR THEIR RESPECTIVE 6 FISCAL YEARS. 7 SECTION 3. THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY <-- 8 PROVISION OF THIS ACT OR ITS APPLICATION TO ANY PERSON OR 9 CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT 10 OTHER PROVISIONS OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN 11 EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION. 12 SECTION 3 4. THIS ACT SHALL APPLY TO ALL ASSESSMENTS MADE <-- 13 AFTER DECEMBER 31, 1993. FOR TAX YEARS BEGINNING AFTER DECEMBER <-- 14 31, 1993, WHETHER THE OFFICIAL NOTICE OF THE ASSESSMENT WAS 15 RECEIVED BEFORE OR AFTER THAT DATE. 16 SECTION 4 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. AS <-- 17 FOLLOWS: 18 (1) THE ADDITION OF SECTION 9.2 OF THE ACT SHALL TAKE 19 EFFECT IN THREE YEARS. 20 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT 21 IMMEDIATELY. A25L53WMB/19940H2495B3510 - 6 -