1Amending Title 51 (Military Affairs) of the Pennsylvania
2Consolidated Statutes, further providing for definitions and
3for duty of commission.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Sections 8901 and 8904(1) and (2) of Title 51 of
7the Pennsylvania Consolidated Statutes are amended to read:

8§ 8901. Definitions.

9The following words and phrases when used in this chapter
10shall have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Annual income." All income received by an applicant and the
13applicant's spouse while residing in the residence during the
14calendar year prior to the year for which the exemption is
15claimed.

16"Blind." Visual acuity of three-sixtieths or ten two-

1hundredths, or less normal vision.

2"Commission." The State Veterans' Commission established
3under section 1702 (relating to State Veterans' Commission).

4"Income." As follows:

5(1) All income from whatever source derived, including
6any of the following:

7(i) Salaries, wages, bonuses, commissions, income
8from self-employment, alimony, support money, cash public
9assistance and relief.

10(ii) The gross amount of any pensions or annuities,
11including 50% of railroad retirement benefits.

12(iii) Fifty percent of all benefits received under
13the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et
14seq.), except Medicare benefits.

15(iv) All benefits received under State unemployment
16insurance laws and veterans' disability payments.

17(v) All interest received from the Federal or a
18state government or an instrumentality or political
19subdivision of the Federal or a state government.

20(vi) Realized capital gains and rentals.

21(vii) Workers' compensation.

22(viii) The gross amount of loss of time insurance
23benefits, life insurance benefits and proceeds, except
24for the first $5,000 of the total of death benefit
25payments.

26(ix) Gifts of cash or property, other than transfers
27by gift between members of a household, in excess of a
28total value of $300.

29(2) The term does not include surplus food or other
30relief in kind supplied by a governmental agency, property

1tax or rent rebate or inflation dividend.

2"Paraplegic." The bilateral paralysis of the upper or lower
3extremities of the body.

4§ 8904. Duty of commission.

5The commission shall:

6(1) Fix uniform and equitable standards for determining
7the need for exemption from the payment of real estate taxes
8granted by this act. In fixing such uniform and equitable
9standards, [the commission shall apply a rebuttable
10presumption that] an applicant with annual income of $75,000
11or less [has a need for] shall be deemed to be in need of the
12exemption. Beginning on January 1, 2009, and every two years
13thereafter, the commission shall [adjust] increase the annual
14income level qualifying for the [rebuttable presumption of
15need] exemption for need by an amount equal to the [change]
16average of any increase in the Consumer Price Index in the
17preceding two years. The commission shall publish the
18adjusted annual income level qualifying for the [rebuttable
19presumption of] exemption for need as a notice in the
20Pennsylvania Bulletin.

21(2) [After] For applicants with an annual income that 
22exceeds $75,000, after submission of proof of need by the
23applicant for the exemption from payment of real estate
24taxes, determine the need of the applicant.

25* * *

26Section 2. This act shall take effect in 60 days.