PRINTER'S NO. 1065
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
853
Session of
2021
INTRODUCED BY MUTH, SANTARSIERO, FONTANA, COSTA AND COMITTA,
SEPTEMBER 14, 2021
REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS,
SEPTEMBER 14, 2021
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for veterans property tax and rent
rebate assistance; establishing the Veterans Property Tax and
Rent Rebate Assistance account; and making an appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XXIX-I
VETERANS PROPERTY TAX AND RENT REBATE ASSISTANCE
Section 2901-I. Scope of article.
This article provides veterans with assistance in the form of
property tax and rent rebates.
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Section 2902-I. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." The Board of Finance and Revenue of the
Commonwealth.
"Claimant." A person who files a claim for property tax
rebate or rent rebate in lieu of property taxes and is a veteran
who has been honorably discharged from the armed forces of the
United States, including the National Guard, within the past
three years.
"DD214." A United States Department of Defense Report of
Separation Form 214 or a similarly effective form issued by the
Department of Defense relating to separation from military
service.
"DD215." A United States Department of Defense Incomplete
Awards, Decorations and Discharges Form 215 or similarly
effective form issued by the Department of Defense to correct
errors or make additions to a DD214 in order to ensure that the
veteran has accurate discharge documentation.
"Department." The Department of Revenue of the Commonwealth.
"Homestead." A dwelling, whether owned or rented, and so
much of the land surrounding it, as is reasonably necessary for
the use of the dwelling as a home, occupied by a claimant. The
term includes, but is not limited to:
(1) Premises occupied by reason of ownership or lease in
a cooperative housing corporation.
(2) A mobile home that is assessed as realty for local
property tax purposes and the land, if owned or rented by the
claimant, upon which the mobile home is situated, and other
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similar living accommodations.
(3) A part of a multidwelling or multipurpose building
and a part of the land upon which it is built.
(4) Premises occupied by reason of a claimant's
ownership or rental of a dwelling located on land owned by a
nonprofit incorporated association, of which the claimant is
a member, if the claimant is required to pay a pro rata share
of the property taxes levied against the association's land.
(5) Premises occupied by a claimant if the claimant is
required by law to pay a property tax by reason of the
claimant's ownership or rental, including a possessory
interest, in the dwelling, the land or both. An owner
includes a person in possession under a contract of sale,
deed of trust, life estate, joint tenancy or tenancy in
common or by reason of statutes of descent and distribution.
"Real property taxes." All taxes on a homestead, exclusive
of municipal assessments, delinquent charges and interest, due
and payable during a calendar year.
"Rent rebate in lieu of property taxes." Twenty percent of
the gross amount actually paid in cash or its equivalent in any
calendar year to a landlord in connection with the occupancy of
a homestead by a claimant, irrespective of whether the amount
constitutes payment solely for the right of occupancy or
otherwise.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Veteran." An individual who served in the armed forces of
the United States, including the National Guard.
Section 2903-I. Establishment of program.
The Veterans Property Tax and Rent Rebate Assistance Program
is established in the department and shall be administered as
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provided in this article.
Section 2904-I. Property tax and rent rebate.
(a) Schedule of rebates.--The following shall apply:
(1) (i) The base amount of any claim for property tax
rebate for real property taxes due and payable during a
calendar year 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
household income equal to or less than $30,000 and an
eligible claim for property tax rebate for real property
taxes due and payable during a calendar year and whose
real property taxes exceed 15% of the claimant's
household income shall be equal to 50% of the base amount
determined under subparagraph (i). A claimant who is a
resident of a city of the first class, a city of the
second class A or a school district of the first class A
shall be ineligible for the supplemental amount under
this subparagraph.
(2) The amount of any claim for rent rebate in lieu of
property taxes for rent due and payable during a calendar
year shall be determined in accordance with the following:
Household Income
Amount of Rent Rebate in Lieu of
Property Taxes
Allowed as Rebate
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$ 0 - $ 8,000 $650
8,001 - 15,000 500
15,001 - 18,000 300
18,001 - 35,000 250
(b) Limitations on claims.--
(1) No claim during a calendar year shall be allowed if
the amount of property tax or rent rebate computed in
accordance with this section is less than $10.
(2) During a calendar year, 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); or
(ii) (A) the amount of real property taxes actually
paid; or
(B) twenty percent 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.
(c) Apportionment and public assistance.--
(1) If a claim relates to a homestead owned or rented
and occupied for only a portion of a year or owned or rented
in part by a person who does not meet the qualifications for
a claimant, exclusive of an interest owned or leased by a
claimant's spouse, the department shall apportion the real
property taxes or rent in accordance with the period or
degree of ownership or leasehold or eligibility of the
claimant in determining the amount of rebate for which a
claimant is eligible.
(2) A claimant who receives public assistance from the
Department of Human Services shall not be eligible for rent
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rebate in lieu of property taxes during those months within
which the claimant receives public assistance.
(d) Government subsidies.--Rent shall not include subsidies
provided by or through a governmental agency.
Section 2905-I. Filing of claim.
(a) General rule.--Except as otherwise provided in
subsection (b), a claim for property tax or rent rebate must be
filed with the department on or before the 30th day of June of
the year next succeeding the end of the calendar year in which
real property taxes or rent was due and payable.
(b) Exception.--A claim filed after the June 30 deadline
until December 31 of such calendar year shall be accepted by the
secretary if funds are available to pay the benefits to the late
filing claimant.
(c) Payments.--No reimbursement on a claim shall be made
earlier than the day following the 30th day of June provided in
this article on which that claim may be filed with the
department.
(d) Eligibility of claimants.--
(1) Only one claimant from a homestead each year shall
be entitled to the property tax or rent rebate.
(2) If two or more persons are able to meet the
qualifications for a claimant, they may determine who the
claimant shall be.
(3) If they are unable to agree, the department shall
determine to whom the rebate is to be paid.
Section 2906-I. Proof of claim.
(a) Contents.--Each claim shall include:
(1) A DD214 or DD215, issued within the last three
years.
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(2) The size and nature of the property claimed as a
homestead.
(3) The rent, tax receipt or other proof that the real
property taxes on the homestead have been paid or rent in
connection with the occupancy of a homestead has been paid.
(4) Other information as required by the department.
(b) Direct payment of taxes or rent not required.--It shall
not be necessary that taxes or rent were paid directly by the
claimant if the rent or taxes have been paid when the claim is
filed.
Section 2907-I. Incorrect claim.
Whenever on audit of a claim the department finds the claim
to have been incorrectly determined, the department shall
redetermine the correct amount of the claim and notify the
claimant of the reason for the redetermination and the amount of
the corrected claim.
Section 2908-I. Funds for payment of claims.
(a) Establishment.--A restricted account is established in
the State Treasury to be known as the Veterans Property Tax and
Rent Rebate Assistance Account. The account shall be for the
purpose of funding claims under this article.
(b) Transfer.--The sum of $40,000,000 is transferred from
the General Fund to the account.
(c) Appropriation.--Money transferred to the account is
appropriated on a continuing basis to the Department of Revenue
for use in funding claims as specified under this article.
Section 2909-I. Claim forms and rules and regulations.
(a) General rule.--Necessary rules and regulations shall be
prescribed by the secretary, in consultation with the Secretary
of Community and Economic Development. The department shall
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receive all applications, determine the eligibility of
claimants, hear appeals, disburse payments and make available
suitable forms for the filing of claims.
(b) Report to General Assembly.--In addition to any rules
and regulations prescribed under subsection (a), the department
shall collect the following information and issue a report
including such information to the chairperson and minority
chairperson of the Appropriations Committee of the Senate and
the chairperson and minority chairperson of the Appropriations
Committee of the House of Representatives by September 30, 2023,
and September 30 of each year thereafter:
(1) The total number of claims which will be paid in the
fiscal year in which the report is issued with the
information provided by school district and by county.
(2) The total amount of rebates paid in the fiscal year
in which the report is issued with the information provided
by school district and by county.
Section 2910-I. Fraudulent claims and conveyances to obtain
benefits.
(a) Civil penalty.--In any case in which a claim is
excessive and was filed with fraudulent intent, the claim shall
be disallowed in full, and a penalty of 25% of the amount
claimed shall be imposed. The penalty and the amount of the
disallowed claim, if the claim has been paid, shall bear
interest at the rate of 1.5% per month from the date of the
claim until repaid.
(b) Criminal penalty.--The claimant and any person who
assisted in the preparation or filing of a fraudulent claim
commits a misdemeanor of the third degree and, upon conviction
thereof, shall be sentenced to pay a fine not exceeding $1,000
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or to imprisonment not exceeding one year, or both.
(c) Disallowance for receipt of title.--A claim shall be
disallowed if the claimant received title to the homestead
primarily for the purpose of receiving a property tax rebate.
Section 2911-I. Petition for redetermination.
(a) Right to file.--A claimant whose claim is either denied,
corrected or otherwise adversely affected by the department may
file with the department a petition for redetermination on forms
supplied by the department within 90 days after the date of
mailing of written notice by the department of the action.
(b) Contents.--The petition shall state the grounds upon
which the claimant alleges that the departmental action is
erroneous or unlawful, in whole or part, and shall contain an
affidavit or affirmation that the facts contained in the
petition are true and correct.
(c) Extension of time for filing.--
(1) An extension of time for filing the petition may be
allowed for cause but may not exceed 120 days.
(2) The department shall hold such hearings as may be
necessary for the purpose of redetermination, and each
claimant who has duly filed such petition for redetermination
shall be notified by the department of the time when and the
place where a hearing in the claimant's case will be held.
(d) Time period for decision.--The department shall, within
six months after receiving a filed petition for redetermination,
dispose of the matters raised by such petition and shall mail
notice of the department's decision to the claimant.
Section 2912-I. Review by board.
(a) Right to review.--Within 90 days after the date of
official receipt by the claimant of notice mailed by the
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department of its decision on a petition for redetermination
filed with it, the claimant who is adversely affected by the
decision may by petition request the board to review the action.
(b) Effect of no decision from department.--The failure of
the department to officially notify the claimant of a decision
within the six-month period provided for by section 2911-I shall
act as a denial of the petition, and a petition for review may
be filed with the board within 120 days after written notice is
officially received by the claimant that the department has
failed to dispose of the petition within the six-month period.
(c) Contents of petition for redetermination.--A petition
for redetermination filed shall state the reasons upon which the
claimant relies or shall incorporate by reference the petition
for redetermination in which the reasons were stated. The
petition shall be supported by affidavit that the facts stated
in the petition are correct and true.
(d) Time period for decision.--The board shall act in
disposition of petitions filed with it within six months after
they have been received, and, in the event of failure of the
board to dispose of a petition within six months, the action
taken by the department upon the petition for redetermination
shall be deemed sustained.
(e) Relief authorized by board.--The board may sustain the
action taken by the department on the petition for
redetermination or may take other action as the board deems
necessary and consistent with provisions of this article.
(f) Form of notice.--Notice of the action of the board shall
be given by mail to the department and to the claimant.
Section 2913-I. Appeal.
A claimant aggrieved by a decision of the board may appeal
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from the decision of the board in the manner provided by law for
appeals from decisions of the board in tax cases.
Section 2. This act shall take effect July 1, 2022, or
immediately, whichever is later.
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