Regular Session 2017-2018 House Bill 0641 P.N. 1712

PRIOR PRINTER'S NO. 678

PRINTER'S NO. 1712

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

641

Session of

2017

INTRODUCED BY GROVE, SCHWEYER, JAMES, BARRAR, DeLUCA, ZIMMERMAN,

NEILSON, MENTZER, PHILLIPS-HILL, GILLEN AND WHEELAND,

FEBRUARY 27, 2017

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF

REPRESENTATIVES, AS AMENDED, MAY 10, 2017

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in assessments of persons and

property, providing for senior property tax freeze.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Chapter 85 of Title 53 of the Pennsylvania

Consolidated Statutes is amended by adding a subchapter to read:

SUBCHAPTER G

SENIOR PROPERTY TAX FREEZE

Sec.

8591. Scope of subchapter.

8592. Definitions.

8593. Authority.

8594. Income eligibility.

8595. Tax freeze.

8596. Application procedure.

8597. Contents of application PROGRAM PERFORMANCE AND ANNUAL

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REPORT .

8598. Attachment and satisfaction of liens REPORT AND

EXPIRATION .

§ 8591. Scope of subchapter.

This subchapter relates TO senior citizen property tax

freeze.

§ 8592. Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Base payment." The amount of property tax paid by an

applicant in the base year.

"Base year." The tax year preceding the first tax year for

which a taxing authority implements the provisions of this

subchapter or the tax year immediately preceding an applicant's

approval for a tax freeze under section 8595 (relating to tax

freeze).

"Claimant." A person 62 65 years of age or older who has

established residency in this Commonwealth for five or more

years.

"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC

DEVELOPMENT OF THE COMMONWEALTH.

"Household income." All income as defined in section 1303 of

the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known

as the Taxpayer Relief Act, received by the claimant and by the

claimant's spouse during the calendar year for which a tax

deferral is claimed.

"Increase in real property taxes." An increase in the

property taxes above the base payment resulting from a millage

increase, a change in the assessment ratio or method or by a

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revaluing of all properties.

§ 8593. Authority.

All political subdivisions shall have the power and authority

to grant annual tax freezes in the manner provided in this

subchapter.

§ 8594. Income eligibility.

A claimant shall be eligible for a tax freeze under section

8595 (relating to tax freeze) THIS SUBCHAPTER if the claimant

and the claimant's spouse have a household income not exceeding

$60,000 annually.

§ 8595. Tax freeze.

(a) Amount.-- A claimant shall have all REAL property taxes

frozen at the claimant's base year amount for as long as the

claimant remains eligible under this subchapter. Real property

taxes under this subchapter shall include all school, municipal

and county taxes.

(b) Prohibition.--No tax freeze shall be granted if the

total amount of deferred taxes plus the total amount of all

other unsatisfied liens on the homestead of the claimant plus

the outstanding principal on any and all mortgages on the

homestead exceeds 85% of the market value of the homestead or if

the outstanding principal on any and all mortgages on the

homestead exceeds 70% of the market value of the homestead.

Market value shall equal assessed value divided by the common

level ratio as most recently determined by the State Tax

Equalization Board for the county in which the property is

located.

§ 8596. Application procedure.

(a) Initial application.--Any person eligible for a tax

freeze under this subchapter may apply annually to a political

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subdivision. In the initial year of application, the following

information shall be provided in the application provided under

subsection (c) (B) :

(1) A statement of request for the tax freeze.

(2) A certification that the applicant or the

applicant's spouse jointly are the owners in fee simple of

the homestead upon which the real property taxes are imposed.

(3) A certification that the applicant's homestead is

adequately insured under a homeowner's policy to the extent

of all outstanding liens.

(4) Receipts showing timely payment of the immediately

preceding year's nondeferred real property tax liability.

(5) Proof of income eligibility under section 8574

(relating to income eligibility).

(6) Other information required by the political

subdivision.

(b) Subsequent years.--After the political subdivision

authorizes a claimant's initial application, the claimant shall

remain eligible for a tax freeze in subsequent years so long as

the claimant continues to meet the eligibility requirements of

this subchapter.

Economic Development shall promulgate a standardized application

form for use by political subdivisions. The department shall

publish the application form in the Pennsylvania Bulletin.

§ 8597. Contents of application.

The application for a tax freeze distributed to persons shall

contain the following:

(1) A statement that the tax freeze granted under this

subchapter is provided in exchange for a lien against the

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homestead of the applicant.

(2) An explanation of the manner in which the frozen

taxes shall become due, payable and delinquent and include,

at a minimum, the consequences of noncompliance with the

provisions of this subchapter.

§ 8598. Attachment and satisfaction of liens.

(a) Nature of lien.--All taxes deferred under this

subchapter shall constitute a prior lien on the homestead of the

claimant in favor of a political subdivision and shall attach as

of the date and in the same manner as other real estate tax

liens. The deferred taxes shall be collected as other real

estate tax liens, but the deferred taxes shall be due, payable

and delinquent only as provided in subsection (b).

(b) Payment.--

(1) All or part of the deferred taxes may at any time be

paid to the political subdivision.

(2) In the event that the deferred taxes are not paid by

the claimant or the claimant's spouse during his or her

lifetime or during their continued ownership of the

homestead, the deferred taxes shall be paid either:

(i) prior to the conveyance of the homestead to any

third party; or

(ii) prior to the passing of the legal or equitable

title, either by will or by statute, to the heirs of the

claimant or the claimant's spouse.

(3) The surviving spouse of a claimant shall not be

required to pay the deferred taxes by reason of his or her

acquisition of the homestead due to death of the claimant as

long as the surviving spouse maintains domicile in the

property. The surviving spouse may continue to apply for a

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tax freeze in subsequent years provided the surviving spouse

is eligible under the provisions of this subchapter.

(1) A CERTIFICATION THAT THE APPLICANT OR THE

APPLICANT'S SPOUSE JOINTLY ARE THE OWNERS IN FEE SIMPLE OF

THE HOMESTEAD UPON WHICH THE REAL PROPERTY TAXES ARE IMPOSED.

(2) RECEIPTS SHOWING TIMELY PAYMENT OF THE IMMEDIATELY

PRECEDING YEAR'S BASE PAYMENT OF REAL PROPERTY TAXES.

(3) PROOF OF INCOME ELIGIBILITY UNDER SECTION 8594

(RELATING TO INCOME ELIGIBILITY).

(4) OTHER INFORMATION REQUIRED BY THE POLITICAL

SUBDIVISION FOR THE PURPOSE OF COMPLYING WITH SECTION 8597(C)

(RELATING TO PROGRAM PERFORMANCE AND ANNUAL REPORT).

(B) APPLICATION FORM.--THE DEPARTMENT SHALL PROMULGATE A

STANDARDIZED APPLICATION FORM FOR USE BY POLITICAL SUBDIVISIONS.

THE APPLICATION FORM SHALL BE SUBSTANTIALLY SIMILAR TO THE

APPLICATION FORM FOR PROPERTY TAX OR RENT REBATE CLAIMS UNDER

CHAPTER 13 OF THE ACT OF JUNE 27, 2006 (1ST SP.SESS., P.L.1873,

NO.1), KNOWN AS THE TAXPAYER RELIEF ACT. THE DEPARTMENT SHALL

PUBLISH THE APPLICATION FORM IN THE PENNSYLVANIA BULLETIN AND

TRANSMIT THE APPLICATION TO POLITICAL SUBDIVISIONS UPON REQUEST.

THE DEPARTMENT MAY POST THE APPLICATION ON A PUBLICLY ACCESSIBLE

INTERNET WEBSITE.

AUTHORIZES A CLAIMANT'S INITIAL APPLICATION, THE CLAIMANT SHALL

REMAIN ELIGIBLE FOR A TAX FREEZE IN SUBSEQUENT YEARS SO LONG AS

THE CLAIMANT ANNUALLY REFILES THE APPLICATION WITH THE POLITICAL

SUBDIVISION SHOWING THAT THE CLAIMANT CONTINUES TO MEET THE

ELIGIBILITY REQUIREMENTS OF THIS SUBCHAPTER.

§ 8597. PROGRAM PERFORMANCE AND ANNUAL REPORT.

(A) DUTIES OF DEPARTMENT.--THE DEPARTMENT SHALL HAVE THE

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FOLLOWING DUTIES:

(1) COMPILING A LIST OF HOW MANY POLITICAL SUBDIVISIONS

GRANT A TAX FREEZE UNDER THIS SUBCHAPTER.

(2) COMPILING THE AGGREGATE NUMBER OF INDIVIDUALS

GRANTED A TAX FREEZE IN EACH POLITICAL SUBDIVISION THAT

GRANTS A TAX FREEZE UNDER THIS SUBCHAPTER.

(3) CALCULATING THE DIFFERENCE BETWEEN THE TOTAL AMOUNT

OF REAL PROPERTY TAXES PAYABLE BY THE INDIVIDUALS GRANTED A

TAX FREEZE UNDER THIS SUBCHAPTER AND THE TOTAL AMOUNT OF REAL

PROPERTY TAXES THAT WOULD HAVE BEEN PAYABLE BY THOSE

INDIVIDUALS BUT FOR THE TAX FREEZE.

(4) PUBLISHING AN ANNUAL REPORT WITH THE INFORMATION

UNDER PARAGRAPHS (1), (2) AND (3) AND POSTING THE ANNUAL

REPORT ON THE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET

WEBSITE.

(B) COSTS.--THE DEPARTMENT SHALL COLLECT THE INFORMATION

UNDER SUBSECTION (A) IN A MANNER AS TO MINIMIZE THE COSTS AND

ADMINISTRATIVE REQUIREMENTS ON POLITICAL SUBDIVISIONS.

(1) A POLITICAL SUBDIVISION WHICH HAS GRANTED A TAX

FREEZE UNDER THIS SUBCHAPTER SHALL NOTIFY THE DEPARTMENT IN

WRITING AND ASSIST THE DEPARTMENT IN COMPILING THE

INFORMATION UNDER SUBSECTION (A).

(2) THE REPORTING REQUIREMENTS AS PRESCRIBED UNDER THIS

SUBSECTION MAY BE SUBMITTED ELECTRONICALLY TO THE DEPARTMENT.

§ 8598. REPORT AND EXPIRATION.

(A) REPORT.--THE DEPARTMENT SHALL SUBMIT A REPORT WITH THE

INFORMATION UNDER SECTION 8597(A)(1), (2) AND (3) (RELATING TO

P ROGRAM PERFORMANCE AND ANNUAL REPORT) AND ANY OTHER RELEVANT

INFORMATION TO THE GENERAL ASSEMBLY BEFORE JANUARY 1, 2027, FOR

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THE PURPOSE OF REVIEWING THE ELIGIBILITY CRITERIA AND

EFFECTIVENESS OF THE TAX FREEZE UNDER THIS SUBCHAPTER.

(B) EXPIRATION.--THIS SUBCHAPTER SHALL EXPIRE JANUARY 1,

2028.

SECTION 2. IF ANY PROVISION OF THIS ACT OR THE APPLICATION

THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, SUCH

INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF

THE ACT WHICH CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION

OR APPLICATION, AND TO THIS END THE PROVISIONS OF THIS ACT ARE

DECLARED TO BE SEVERABLE.

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

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