Regular Session 2019-2020 House Bill 1247 P.N. 1451

PRINTER'S NO. 1451

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1247

Session of

2019

INTRODUCED BY CALTAGIRONE, READSHAW, KINSEY, HILL-EVANS, BARRAR,

McNEILL, MURT, HELM, YOUNGBLOOD, STRUZZI, DeLUCA, WEBSTER AND

ROZZI, APRIL 16, 2019

REFERRED TO COMMITTEE ON FINANCE, APRIL 16, 2019

AN ACT

Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,

No.1), entitled "An act providing for taxation by school

districts, for the State funds formula, for tax relief in

first class cities, for school district choice and voter

participation, for other school district options and for a

task force on school cost reduction; making an appropriation;

prohibiting prior authorized taxation; providing for

installment payment of taxes; restricting the power of

certain school districts to levy, assess and collect taxes;

and making related repeals," in senior citizens property tax

and rent rebate assistance, further providing for property

tax and rent rebate and for funds for payment of claims.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 1304(a), (b) and (c)(2) and 1308 of the

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

the Taxpayer Relief Act, are amended to read:

Section 1304. Property tax; and rent rebate.

(a) Schedule of rebates.--

(1) The amount of any claim for property tax rebate or

rent rebate in lieu of property taxes for real property taxes

or rent due and payable during calendar years 1985 through

2005 shall be determined in accordance with the following

schedule:

Household Income

Percentage of Real Property Taxes or

Rent Rebate in Lieu of

Property Taxes Allowed as Rebate

$ 0 - $ 4,999 100%

5,000 - 5,499 100

5,500 - 5,999 90

6,000 - 6,499 80

6,500 - 6,999 70

7,000 - 7,499 60

7,500 - 7,999 50

8,000 - 8,499 40

8,500 - 8,999 35

9,000 - 9,999 25

10,000 - 11,999 20

12,000 - 12,999 15

13,000 - 15,000 10

(2) The following apply:

(i) The base amount of any claim for property tax

rebate for real property taxes due and payable during

calendar year 2006 and thereafter shall be determined in

accordance with the following schedule:

Household Income

Amount of Real Property Taxes

Allowed as Rebate

$ 0 - $ 8,000 $650

8,001 - 15,000 500

15,001 - 18,000 300

18,001 - 35,000 250

(ii) The supplemental amount for a claimant with a

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household income equal to or less than $30,000 and an

eligible claim for property tax rebate for real property

taxes due and payable during the calendar year preceding

the first year in which a payment under section 505(b) is

made and each year thereafter and whose real property

taxes exceed 15% of the claimant's household income shall

be equal to 50% of the base amount determined under

subparagraph (i). A claimant who is a resident of a city

of the first class, a city of the second class A or a

school district of the first class A shall be ineligible

for the supplemental amount under this subparagraph.

(2.1) During calendar year 2019 and thereafter, the

percentage of real property taxes allowed as rebate shall be

equal to 100% for a claimant who qualifies under guidelines

as established by the department for the property tax rebate

program.

(3) The amount of any claim for rent rebate in lieu of

property taxes for rent due and payable during calendar year

2006 and thereafter shall be determined in accordance with

the following:

Household Income

Amount of Rent Rebate in

Lieu of Property Taxes

Allowed as Rebate

$ 0 - $ 8,000 $650

8,001 - 15,000 500

(b) Limitations on claims.--

(1) No claim through calendar year 2005 shall be allowed

if the amount of property tax or rent rebate computed in

accordance with this section is less than $10, and the

maximum amount of property tax or rent rebate payable shall

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not exceed $500.

(2) For calendar year 2006 and thereafter, the maximum

amount of property tax or rent rebate in lieu of property

taxes payable shall not exceed the lesser of:

(i) the amount of a claim under subsection (a)(2),

(2.1) or (3), as applicable;

(ii) the amount of real property taxes actually

paid; or

(iii) 20% of gross rent actually paid.

(3) No claim shall be allowed if the claimant is a

tenant of an owner of real property exempt from real property

taxes.

* * *

(2) A claimant who receives public assistance from the

Department of [Public Welfare] Human Services shall not be

eligible for rent rebate in lieu of property taxes during

those months within which the claimant receives public

assistance.

* * *

Section 1308. Funds for payment of claims.

(a) Payment.--Approved claims shall be paid from the State

Lottery Fund established by the act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law.

(b) Transfers from Property Tax Relief Fund.--The Secretary

of the Budget shall transfer the following amounts from the

Property Tax Relief Fund to the State Lottery Fund:

(1) Notwithstanding any other provision of law, an

amount equal to $100,000,000 of the total slot machine

license fees paid by successful applicants for a Category 1

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slot machine license under 4 Pa.C.S. § 1209 (relating to slot

machine license fee). The transfer under this paragraph shall

occur upon deposit in the Property Tax Relief Fund of moneys

derived from the fee from the fourth successful applicant for

a Category 1 slot machine license.

(2) Notwithstanding any other provision of law, an

amount equal to $100,000,000 of the total slot machine

license fees paid by successful applicants for a Category 2

slot machine license under 4 Pa.C.S. § 1209. The transfer

under this paragraph shall occur upon deposit in the Property

Tax Relief Fund of moneys derived from the fee from the third

successful applicant for a Category 2 slot machine license.

(3) For fiscal years 2007-2008 and 2008-2009, an amount

equal to the sum of approved claims to be paid in each of

those fiscal years under sections 704 and 1304(a)(2)(ii), if

any.

(4) For fiscal year 2009-2010 and each fiscal year

thereafter, all of the following:

(i) The difference between the sum of the amount of

approved claims to be paid in the next fiscal year under

section 1304(a)(2)(i) and (3) and the amount of approved

claims paid in fiscal year 2006-2007 under section

1304(a)(1).

(ii) The sum of the amount of approved claims to be

paid in the next fiscal year under sections 704 and

1304(a)(2)(ii), if any.

(5) Beginning in fiscal year 2009-2010 and until the

difference between the sum of subparagraphs (i) and (ii) and

$200,000,000 is paid, an amount of not less than $40,000,000

annually or the amount of the difference, whichever is less.

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All transfers under this paragraph shall be completed no

later than four years after the transfer required by

paragraph (2).

(i) The difference between the sum of the amount of

approved claims to be paid in fiscal year 2007-2008 under

section 1304(a)(2)(i) and (3) and the amount of approved

claims paid in fiscal year 2006-2007 under section

1304(a)(1).

(ii) The difference between the sum of the amount of

approved claims to be paid in fiscal year 2008-2009 under

section 1304(a)(2)(i) and (3) and the amount of approved

claims paid in fiscal year 2006-2007 under section

1304(a)(1).

(6) Beginning in fiscal year 2018-2019 and each fiscal

year thereafter, if the balance of the State Lottery Fund is

insufficient to pay claims under section 1304(a)(2.1) the

lesser of:

(i) the difference between the sum of the amount of

approved claims to be paid in the next fiscal year under

section 1304(a)(2.1) and the amount available in the

State Lottery Fund to pay the claims; or

(ii) the balance of the Property Tax Relief Fund.

Property Tax Relief Fund is transferred under subsection (b)(6)

(ii), the Secretary of the Budget shall transfer from the

General Fund to the State Lottery Fund the difference between

the sum of the amount of approved claims to be paid under

section 1304(a)(2.1) and the amount transferred from the

Property Tax Relief Fund under subsection (b)(6)(ii).

Section 2. This act shall take effect immediately.

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