PRINTER'S NO. 24
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
43
Session of
2017
INTRODUCED BY WILLIAMS, FONTANA AND SCHWANK, JANUARY 12, 2017
REFERRED TO FINANCE, JANUARY 12, 2017
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in assessments of persons and
property, further providing for definitions, for authority,
for income eligibility and for tax deferral.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 8572, 8573, 8574 and 8575 of Title 53 of
the Pennsylvania Consolidated Statutes are amended to read:
§ 8572. 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
entry into the tax deferral program.]
"Claimant." A person whose household income does not exceed
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the limit provided for in section 8574 (relating to income
eligibility).
"Household income." All income as defined in the act of
March 11, 1971 (P.L.104, No.3), known as the Senior Citizens
Rebate and Assistance 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
revaluing of all properties.]
§ 8573. Authority.
All political subdivisions shall [have the power and
authority to] grant annual tax deferrals in the manner provided
in this subchapter.
§ 8574. Income eligibility.
A claimant shall be eligible for a tax deferral if the
claimant and the claimant's spouse have a household income not
exceeding [the maximum household income eligibility limitations
set forth in the act of March 11, 1971 (P.L.104, No.3), known as
the Senior Citizens Rebate and Assistance Act] $50,000.
§ 8575. Tax deferral.
(a) Amount.--An annual real estate tax deferral granted
under this subchapter shall equal the [increase in] real
property taxes upon the homestead of the claimant.
(b) Prohibition.--No tax deferrals 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
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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.
Section 2. The amendment of 53 Pa.C.S. §§ 8572, 8573, 8574
and 8575 shall apply to real estate tax deferrals applied for on
or after the effective date of this section.
Section 3. This act shall take effect in 60 days.
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