PRINTER'S NO. 4157
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2689
Session of
2018
INTRODUCED BY FARRY, OCTOBER 3, 2018
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 3, 2018
AN ACT
Providing for a freeze on real estate taxes for senior citizens,
for claim procedure, for termination of tax freeze, for
transfers to surviving spouses and for Commonwealth
reimbursement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Senior
Citizens Property Tax Freeze Act.
Section 2. Definitions.
The following words and phrases when used in this act 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 a
claimant either in the tax year beginning January 1, 2015, or in
the first tax year during which a claimant first becomes
eligible, whichever occurs later, on the principal residence in
which the claimant has maintained continuous occupancy and
ownership since either January 1, 2015, or the date upon which
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the claimant first became eligible. In the event a claimant
purchases a residence after January 1, 2015, or after the date
upon which the claimant first becomes eligible, the term means
property taxes paid during the tax year in which the purchase
was made.
"Increases in property taxes." The additional payments due
above the base amount, resulting from millage increases,
modifications in the assessment ratio or assessment increase.
"Senior citizen." A person who is at least 65 years of age.
"Taxing authority." A municipality that imposes a tax on
real property.
Section 3. Eligibility.
To be eligible for a tax freeze under this act, a person must
be a senior citizen and file a completed application as required
under this act.
Section 4. Tax freeze.
Notwithstanding the provisions of any other law, a person who
meets the eligibility requirements contained in this act shall
be entitled to a real estate tax freeze and may not be required
to pay any increases in property taxes in excess of the
claimant's base payment.
Section 5. Claim procedure.
A person eligible for a tax freeze under section 3 may claim
the tax freeze under section 4 by filing with the appropriate
taxing authority the following documents:
(1) A statement of request for a tax freeze.
(2) A certification that the claimant or the claimant
and the claimant's spouse jointly are the owners in fee
simple of the residence upon which the property taxes are
imposed.
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(3) Evidence that the claimant is a senior citizen.
(4) Receipts showing prompt payment of the current
year's property tax liability.
Section 6. Termination of tax freeze.
Subject to the provisions of section 7, the tax rate on and
the assessment of any real estate taxes shall become current on
the sale or transfer of that real property, including any
transfer under a recorded real property sales contract.
Section 7. Transfers to surviving spouses.
A tax freeze under this act shall remain in effect upon the
transfer of the affected real property to a surviving spouse of
a claimant if at the time of the death of the claimant, the
surviving spouse is at least 62 years of age or will be 62 years
of age within six months of the date of death of the claimant.
Section 8. Commonwealth reimbursement.
The Department of Revenue shall, upon submission by local
taxing authorities of documentation as the department may
require, annually pay to taxing authorities the amount of each
claimant's increase in property taxes in excess of the
claimant's base payment.
Section 9. Applicability.
This act shall apply retroactively to tax years beginning
January 1, 2016, and thereafter.
Section 10. Effective date.
This act shall take effect immediately.
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