PRINTER'S NO. 39
No. 37 Special Session No. 1 of 2005
INTRODUCED BY SAINATO, SHANER, LaGROTTA, MARKOSEK, LESCOVITZ,
PALLONE, CALTAGIRONE, SCAVELLO, STERN, WILT, WRIGHT, STABACK,
MARSICO, THOMAS, O'NEILL, GOOD, SCHRODER, R. STEVENSON,
WOJNAROSKI, BELFANTI, HERMAN AND KOTIK, OCTOBER 24, 2005
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 24, 2005
AN ACT
1 Amending the act of July 5, 2004 (P.L.654, No.72), entitled "An
2 act providing for taxation by school districts, for State
3 funds and for wage and net profits tax relief in cities of
4 the first class; and making an appropriation," providing for
5 property tax rebates for homeowners.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The act of July 5, 2004 (P.L.654, No.72), known
9 as the Homeowner Tax Relief Act, is amended by adding a chapter
10 to read:
11 CHAPTER 9
12 HOMEOWNER TAX REBATE
13 Section 901. Scope.
14 This chapter applies to residents of this Commonwealth who
15 reside in a school district that is not eligible to receive a
16 property tax reduction allocation under Chapter 5.
17 Section 902. Definitions.
18 The following words and phrases when used in this chapter
1 shall have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Assessor." The chief assessor of a county, the equivalent
4 position in a home rule county or the equivalent position in a
5 city of the third class that performs its own assessments of
6 real property.
7 "Department." The Department of Revenue of the Commonwealth
8 or its designee.
9 "Fund." The Property Tax Relief Fund.
10 "Homeowner." Any owner of a homestead who is:
11 (1) an individual who is a natural person domiciled in
12 this Commonwealth;
13 (2) a grantor who has placed real property in a
14 revocable trust, provided that the grantor is a natural
15 person domiciled in this Commonwealth; or
16 (3) a partner of a family farm partnership or a
17 shareholder of a family farm corporation as the terms are
18 defined in section 1101-C of the act of June 17, 1971 (P.L.6,
19 No.2), known as the Tax Reform Code of 1971, provided that
20 the partner or shareholder is a natural person domiciled in
21 this Commonwealth.
22 "Real property tax." The total real property tax imposed by
23 a school district on a homestead for the tax year. The term does
24 not include payments made in lieu of taxes or any penalties or
25 interest paid in connection with the tax.
26 "Rebate." An amount up to 100% of the real property tax paid
27 on the assessed value of a homestead to a school district for
28 the tax year.
29 "Residence." A structure used as a place of habitation by
30 the owner of the structure.
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1 "School district." A school district of the first class,
2 first class A, second class, third class or fourth class,
3 including any independent school district.
4 "Tax year." The school district's fiscal year during which
5 real property tax is due and payable.
6 Section 903. Rebate qualifications.
7 (a) General rule.--Subject to section 904, a rebate shall be
8 issued on account of school real property taxes for a homestead
9 if all of the following apply:
10 (1) The homeowner occupied the homestead during the tax
11 year.
12 (2) The homeowner has paid real property tax owed on the
13 homestead to the school district for the tax year.
14 (3) The homeowner is the owner of record as of July 1 of
15 a tax year.
16 (4) The homeowner applies in a form and time prescribed
17 by the department.
18 No homeowner shall be eligible to receive more than one rebate
19 annually.
20 (b) Multiple owners.--If title to a homestead is held by
21 more than one individual, a rebate shall be issued in the names
22 appearing on the school property tax record.
23 (c) Payments.--The department shall pay rebates from moneys
24 in the fund. Moneys in the fund shall be equally divided among
25 eligible homeowners and paid out in the form of rebates, except
26 that no homeowner may be issued a rebate that exceeds the real
27 property tax owed on the homestead and paid by that homeowner
28 for the tax year.
29 (d) Limitation.--The department may not issue any rebates
30 for a tax year unless at the time the list of eligible
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1 homeowners is finally verified under section 904(e) the total
2 amount in the fund is not less than that required under section
3 503.
4 Section 904. Rebate administration.
5 (a) Procedures.--The department shall establish any
6 administrative and application procedures and deadlines
7 necessary to implement and administer this chapter. The
8 provisions of Article III Pt. X of the act of March 4, 1971
9 (P.L.6, No.2), known as the Tax Reform Code of 1971, and Article
10 VII of the act of April 9, 1929 (P.L.343, No.176), known as The
11 Fiscal Code, shall not apply to this chapter. The department may
12 enter into any contracts which are necessary to administer this
13 chapter.
14 (b) Assessors.--Each assessor shall submit annually to the
15 department a list, categorized by school district, of all
16 residential and farm real property and owners of record as of
17 July 1 within its jurisdiction. The certified list shall include
18 only those homeowners of record who have fully paid their school
19 real property taxes owed on their respective homesteads for the
20 tax year.
21 (c) Initial determination.--The department shall make the
22 initial determination of homeowner rebate eligibility from
23 information submitted by the homeowner. The department shall
24 thereafter forward the list of eligible homeowners to the
25 respective assessor.
26 (d) Verification.--Within 30 days after receipt of the list
27 of eligible homeowners, the assessor shall verify the list and
28 report to the department any corrections to the list.
29 (e) Authorization.--The department shall finalize the list
30 and authorize rebates which shall be issued and mailed to all
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1 homeowners on the final verified list by December 31. If the
2 assessor fails to verify the list or notify the department of
3 any corrections within the time limitation set forth under
4 subsection (d), the department shall authorize rebates to all
5 homeowners on the list developed by the department pursuant to
6 subsection (c).
7 Section 905. Petitions for review.
8 A homeowner whose rebate is either denied, corrected or
9 otherwise adversely affected by either the department or the
10 assessor may petition for administrative review in the manner
11 prescribed by the department. An individual aggrieved by the
12 department's action in connection with the administrative review
13 may petition for review in the manner specified in sections 11.1
14 and 11.2 of the act of March 11, 1971 (P.L.104, No.3), known as
15 the Senior Citizens Rebate and Assistance Act.
16 Section 906. Penalties.
17 (a) Refund of rebate and civil penalty.--Any homeowner who
18 receives a rebate through false or misleading information or who
19 otherwise improperly receives a rebate may be required to do the
20 following:
21 (1) refund to the department the amount of rebate
22 received;
23 (2) pay a civil penalty of $50 to the department; or
24 (3) both paragraphs (1) and (2).
25 (b) Offset.--The department may offset any rebate due to a
26 homeowner against collectible liabilities owed to the
27 Commonwealth by the homeowner for taxes imposed under Article
28 III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
29 Reform Code of 1971.
30 Section 907. Erroneous rebates.
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1 (a) Correction.--If the department determines or finds a
2 rebate to have been incorrectly or erroneously paid, it shall
3 redetermine the correct amount of the rebate, if any, and notify
4 the homeowner of the reason for the correction and the amount of
5 the rebate.
6 (b) Failure to refund.--If a rebate has been issued in error
7 and the homeowner fails to refund the rebate upon the
8 department's request, the rebate shall be recoverable by the
9 department in the same manner as assessments as provided for in
10 the act of March 11, 1971 (P.L.104, No.3), known as the Senior
11 Citizens Rebate and Assistance Act.
12 Section 908. Construction.
13 Notwithstanding any other provision of law to the contrary,
14 any property tax rebate received under this chapter shall not be
15 considered "income" under Article III of the act of March 4,
16 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, or for
17 purposes of determining eligibility for any State government
18 program, including, but not limited to, those programs
19 authorized by the act of March 11, 1971 (P.L.104, No.3), known
20 as the Senior Citizens Rebate and Assistance Act, or Chapter 5
21 of the act of August 26, 1971 (P.L.351, No.91), known as the
22 State Lottery Law.
23 Section 2. This act shall take effect in 60 days.
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