PRINTER'S NO.  660

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

645

Session of

2011

  

  

INTRODUCED BY BOSCOLA, BROWNE, FONTANA, ORIE, BREWSTER, SOLOBAY, RAFFERTY AND ARGALL, FEBRUARY 25, 2011

  

  

REFERRED TO FINANCE, FEBRUARY 25, 2011  

  

  

  

AN ACT

  

1

Authorizing senior citizens to claim an exemption from tax

2

increases as to certain real property; and providing for

3

termination of the exemption.

4

The General Assembly of the Commonwealth of Pennsylvania

5

hereby enacts as follows:

6

Section 1.  Short title.

7

This act shall be known and may be cited as the Senior

8

Citizens' Property Tax Freeze Act.

9

Section 2.  Exemption from property tax increases.

10

No political subdivision which imposes a real property tax on

11

residential property shall increase the tax or the tax rate on

12

the real property of an individual if all of the following

13

apply:

14

(1)  The individual is 65 years of age or older.

15

(2)  The individual currently resides on the property as

16

to which the exemption is claimed and has resided thereon for

17

at least five consecutive years immediately prior to claiming

18

the exemption.

 


1

(3)  Neither the individual nor any other person with

2

whom the individual owns the property by joint tenancy,

3

tenancy in common or tenancy by the entireties is currently

4

claiming or otherwise receiving an exemption under this

5

section as to other property located in this Commonwealth.

6

(4)  The individual's annual income, as defined in

7

Chapter 13 of the act of June 27, 2006 (1st Sp.Sess.,

8

P.L.1873, No.1), known as the Taxpayer Relief Act, is not

9

more than $65,000.

10

Section 3.  Application for exemption.

11

An individual may apply for the exemption allowed by section

12

2 by filing with the political subdivision which imposes the tax

13

a notarized statement containing all of the following:

14

(1)  The applicant's name, residential address and Social

15

Security number.

16

(2)  A certification that the individual is 65 years of

17

age or older, currently resides on the property as to which

18

the exemption is claimed and has resided thereon for at least

19

five consecutive years immediately prior to claiming the

20

exemption.

21

(3)  The names and Social Security numbers of all other

22

owners of the property as to which the exemption is claimed.

23

(4)  A certification that no taxes are in arrears as to

24

the property.

25

(5)  Evidence that the individual's annual income does

26

not exceed $65,000.

27

Section 4.  Termination of exemption.

28

(a)  General rule.--Except as provided in subsection (b), the

29

exemption allowed by section 2 shall be terminated, and the tax

30

and tax rate shall become current upon sale or transfer of the

- 2 -

 


1

property as to which the exemption is in effect, including a

2

transfer under a recorded real property sales contract.

3

(b)  Exception.--The exemption from property tax increase

4

shall not be terminated under subsection (a) if the sale or

5

transfer is to a joint owner, tenant in common or tenant by the

6

entireties who is 64 years of age or older at the time of the

7

sale or transfer and who is otherwise entitled to claim the

8

exemption.

9

Section 5.  Reimbursement by Commonwealth.

10

The Department of Revenue shall reimburse political

11

subdivisions annually for the difference between the real

12

property taxes imposed upon individuals who are receiving

13

exemptions under this act and the tax liability which would have

14

been imposed if the exemptions had not been granted.

15

Section 6.  Applicability.

16

This act shall apply to the tax year beginning January 1,

17

2012, and to all subsequent tax years.

18

Section 7.  Repeal.

19

All acts and parts of acts are repealed insofar as they are

20

inconsistent with this act.

21

Section 8.  Effective date.

22

This act shall take effect immediately.

- 3 -