PRINTER'S NO. 2321
No. 1876 Session of 1999
INTRODUCED BY LESCOVITZ, LEDERER, COY, MANDERINO, SURRA,
GORDNER, LAUGHLIN, CAPPABIANCA, McCALL, WALKO, GRUCELA,
BELARDI, STABACK, WILT, CALTAGIRONE, DeWEESE, DALEY, VEON,
VAN HORNE, TRAVAGLIO, PISTELLA, PETRARCA, BATTISTO, SEYFERT,
M. COHEN, CAWLEY, EVANS, COLAFELLA, BELFANTI, STEELMAN,
HERMAN, RAMOS, FREEMAN, MELIO, DeLUCA, JOSEPHS AND TRELLO,
SEPTEMBER 29, 1999
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 29, 1999
AN ACT
1 Providing property tax rebates to owners of land actively
2 devoted to agricultural use; establishing standards and
3 qualifications for eligibility to receive rebates;
4 establishing the Agricultural Property Tax Rebate Fund; and
5 imposing duties upon the Department of Revenue.
6 TABLE OF CONTENTS
7 Section 1. Short title.
8 Section 2. Declaration of policy.
9 Section 3. Definitions.
10 Section 4. Property tax; rebate.
11 Section 5. Filing of claim.
12 Section 6. Proof of claim.
13 Section 7. Incorrect claim.
14 Section 8. Claim forms and rules and regulations.
15 Section 9. Fraudulent claim; conveyance to obtain benefits.
16 Section 10. Petition for redetermination.
17 Section 11. Review by Board of Finance and Revenue.
1 Section 12. Appeal.
2 Section 13. Agricultural Property Tax Rebate Fund.
3 Section 14. Applicability.
4 Section 15. Effective date.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Agricultural
9 Rebate Assistance Act.
10 Section 2. Declaration of policy.
11 In recognition of the severe economic plight of owners of
12 land actively devoted to agricultural use who have been faced
13 with the severe drought of 1999 and record high temperatures
14 which threaten their ability to survive, the General Assembly,
15 pursuant to the mandates of the Constitutional Convention of
16 1968, considers it to be a matter of sound public policy to make
17 special provisions for property tax rebates to that class of
18 citizens who own land actively devoted to agricultural use to
19 relieve their economic burden.
20 Section 3. Definitions.
21 The following words and phrases when used in this act shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
24 "Claimant." A person who files a claim for property tax
25 rebate and who owns land actively devoted to agricultural use.
26 "Crops, livestock and livestock products." The term
27 includes, but is not limited to:
28 (1) Field crops, including corn, wheat, oats, rye,
29 barley, hay, potatoes and dry beans.
30 (2) Fruits, including apples, peaches, grapes, cherries
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1 and berries.
2 (3) Vegetables, including tomatoes, snap beans, cabbage,
3 carrots, beets, onions and mushrooms.
4 (4) Horticultural specialties, including nursery stock
5 ornamental shrubs, ornamental trees and flowers.
6 (5) Livestock and livestock products, including cattle,
7 sheep, hogs, goats, horses, poultry, furbearing animals,
8 milk, eggs and fur.
9 (6) Timber, wood and other wood products derived from
10 trees.
11 (7) Aquatic plants and animals and their byproducts.
12 "Department." The Department of Revenue of the Commonwealth.
13 "Land actively devoted to agricultural use." A unit of land
14 used for the agricultural production of crops, livestock and
15 livestock products.
16 "Real property taxes." All taxes on a land actively devoted
17 to agricultural use (exclusive of municipal assessments,
18 delinquent charges and interest) due and payable during a
19 calendar year.
20 Section 4. Property tax; rebate.
21 (a) Rebate.--The amount of any claim for property tax rebate
22 shall be 10% of real property taxes paid.
23 (b) Claim.--No claim shall be allowed if the amount of
24 property tax rebate computed in accordance with this section is
25 less than $10.
26 (c) Allowance of claim.--No claim shall be allowed if the
27 claimant is a tenant of an owner of real property exempt from
28 real property taxes.
29 Section 5. Filing of claim.
30 A claim for property tax rebate and inflation dividend shall
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1 be filed with the department on or before the 30th day of June
2 of the year next succeeding the end of the calendar year in
3 which real property taxes or rent were due and payable, provided
4 that claims filed after the June 30 deadline until December 31
5 of such calendar year shall be accepted by the Secretary of
6 Revenue as long as funds are available to pay the benefits to
7 the late filing claimants. No reimbursement on a claim shall be
8 made from the Agricultural Property Tax Rebate Fund earlier than
9 the day following the 30th day of June provided in this act on
10 which that claim may be filed with the department. Only one
11 claimant from an area of land actively devoted to agricultural
12 use each year shall be entitled to the property tax rebate. If
13 two or more persons are able to meet the qualifications for a
14 claimant, they may determine who the claimant shall be. If they
15 are unable to agree, the department shall determine to whom the
16 rebate is to be paid.
17 Section 6. Proof of claim.
18 Each claim shall include reasonable proof of the size and
19 nature of the property claimed as land actively devoted to
20 agricultural use and the tax receipt, or other proof that the
21 real property taxes on the homestead have been paid.
22 Section 7. Incorrect claim.
23 Whenever on audit of any claim, the department finds the
24 claim to have been incorrectly determined, it shall redetermine
25 the correct amount of the claim and notify the claimant of the
26 reason of the redetermination and the amount of the corrected
27 claim.
28 Section 8. Claim forms and rules and regulations.
29 Necessary rules and regulations shall be prescribed by the
30 Secretary of Agriculture and the Secretary of Revenue. The
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1 Department of Revenue shall receive all applications, determine
2 the eligibility of claimants, hear appeals, disburse payments
3 and make available suitable forms for the filing of claims.
4 Section 9. Fraudulent claim; conveyance to obtain benefits.
5 In any case in which a claim is excessive and was filed with
6 fraudulent intent, the claim shall be disallowed in full, and a
7 penalty of 25% of the amount claimed shall be imposed. The
8 penalty and the amount of the disallowed claim, if the claim has
9 been paid, shall bear interest at the rate of 0.5% per month
10 from the date of the claim until repaid. The claimant and any
11 person who assisted in the preparation or filing of a fraudulent
12 claim commits a misdemeanor, and, upon conviction, shall be
13 sentenced to pay a fine of not more than $1,000, or to
14 imprisonment for not more than one year, or both. A claim shall
15 be disallowed if the claimant received title to the homestead
16 primarily for the purpose of receiving property tax rebate.
17 Section 10. Petition for redetermination.
18 Any claimant whose claim is either denied, corrected or
19 otherwise adversely affected by the department may file with the
20 department a petition for redetermination on forms supplied by
21 the department within 90 days after the date of mailing of
22 written notice by the department of such action. The petition
23 shall set forth the grounds upon which claimant alleges that the
24 departmental action is erroneous or unlawful, in whole or part,
25 and shall contain an affidavit or affirmation that the facts
26 contained in the petition are true and correct. An extension of
27 time for filing the petition may be allowed for cause but for
28 not more than 120 days. The department shall hold such hearings
29 as may be necessary for the purpose of redetermination, and each
30 claimant who has duly filed such petition for redetermination
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1 shall be notified by the department of the time when and the
2 place where such hearing in his case will be held. It shall be
3 the duty of the department, within six months after receiving a
4 filed petition for redetermination, to dispose of the matters
5 raised by such petition and mail notice of the department's
6 decision to the claimant.
7 Section 11. Review by Board of Finance and Revenue.
8 Within 90 days after the date of official receipt by the
9 claimant of notice mailed by the department of its decision on
10 any petition for redetermination filed with it, the claimant who
11 is adversely affected by such decision may by petition request
12 the Board of Finance and Revenue to review such action. The
13 failure of the department to officially notify the claimant of a
14 decision within the six-month period provided for under section
15 10 shall act as a denial of such petition, and a petition for
16 review may be filed with the board within 120 days after written
17 notice is officially received by the claimant that the
18 department has failed to dispose of the petition within the six-
19 month period prescribed by section 10. Every petition for
20 redetermination filed under this section shall state the reasons
21 upon which the claimant relies or shall incorporate by reference
22 the petition for redetermination in which such reasons shall
23 have been stated. The petition shall be supported by affidavit
24 that the facts set forth in the petition are correct and true.
25 The board shall act in disposition of such petitions filed with
26 it within six months after they have been received, and in the
27 event of failure of the board to dispose of any such petition
28 within six months, the action taken by the department upon the
29 petition for redetermination shall be deemed sustained. The
30 board may sustain the action taken by the department on the
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1 petition for redetermination or it may take such other action as
2 it shall deem necessary and consistent with provisions of this
3 act. Notice of the action of the board shall be given by mail to
4 the department and to the claimant.
5 Section 12. Appeal.
6 Any claimant aggrieved by the decision of the Board of
7 Finance and Revenue may appeal from the decision of the board in
8 the manner now or hereafter provided by law for appeals from
9 decisions of the board in tax cases.
10 Section 13. Agricultural Property Tax Rebate Fund.
11 (a) Establishment.--There is hereby established in the State
12 Treasury a special fund known as the Agricultural Property Tax
13 Rebate Fund to be used solely to make payments of property tax
14 rebates to owners of land actively devoted to agricultural use.
15 (b) Source of fund.--
16 (1) The State Treasurer shall transfer the sum of
17 $10,000,000 from the General Fund into the fund.
18 (2) The fund shall receive such annual appropriations as
19 may be made by the General Assembly. Any appropriation made
20 to the fund shall not lapse.
21 (c) Insufficient revenue.--If in any year the amount of
22 money is insufficient to provide full reimbursement to each
23 eligible claimant, the department shall reduce the amount of
24 payment to each claimant on a pro rata basis.
25 Section 14. Applicability.
26 This act shall apply to tax years beginning January 1, 1999.
27 Section 15. Effective date.
28 This act shall take effect immediately.
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