1Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, 
2No.1), entitled "An act providing for taxation by school 
3districts, for the State funds formula, for tax relief in 
4first class cities, for school district choice and voter 
5participation, for other school district options and for a 
6task force on school cost reduction; making an appropriation; 
7prohibiting prior authorized taxation; providing for 
8installment payment of taxes; restricting the power of 
9certain school districts to levy, assess and collect taxes; 
10and making related repeals," in senior citizens property tax 
11and rent rebate assistance, <-further providing for 
12definitions; and prohibiting certain use of rent rebates.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

<-15Section 1. The act of June 27, 2006 (1st Sp.Sess., P.L.1873,
16No.1), known as the Taxpayer Relief Act, is amended by adding a
17section to read:

<-18Section 1. The definition of "rent rebate in lieu of
19property tax" in section 1303 of the act of June 27, 2006 (1st 
20Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is
21amended to read:

1Section 1303. Definitions.

2The following words and phrases when used in this chapter
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5* * *

6"Rent rebate in lieu of property [taxes."] taxes" or "rent 
7rebate." Twenty percent of the gross amount actually paid in
8cash or its equivalent in any calendar year to a landlord in
9connection with the occupancy of a homestead by a claimant,
10irrespective of whether such amount constitutes payment solely
11for the right of occupancy or otherwise.

12* * *

13Section 2. The act is amended by adding a section to read:

14Section 1314. Unlawful use of rent rebates.

15(a) General rule.--It shall be unlawful for a landlord and
16tenant to enter into a lease or agreement to assign or pay any
17portion of any rent rebate <-in lieu of property taxes to which
18the tenant may be entitled to the landlord or to the landlord's
19assignee or representative.

20(b) Penalties.--A landlord who violates this section shall:

21(1) Fully reimburse the tenant of any portion of a
22payment that was assigned or otherwise used as payment by the
23tenant to the landlord in violation of this section.

24(2) Pay to the department a penalty equal to 25% of the
25total amount of the payment to which the tenant was entitled.
26The penalty shall bear interest at the rate of 1.5% per month
27from the date the payment was assigned or otherwise used as
28payment by the tenant until the penalty is paid in full to
29the department.

30(c) Enforcement.--The Attorney General shall enforce the

1provisions of this section.

2(d) Definitions.--The following words and phrases when used
3in this section shall have the meanings given to them in this
4subsection unless the context clearly indicates otherwise:

5"Landlord." An owner of real property who leases property to
6a tenant under a lease agreement.

7"Tenant." A person who has a possessory interest in real
8property under a lease or by law.

9Section <-2 3. This act shall take effect in 60 days.