Trial Engrossment of Amendment A00827 to House Bill 0788 P.N. 0737, Regular Session 2023-2024

A00827

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

788

Session of

2023

INTRODUCED BY INNAMORATO, KINKEAD, GIRAL, HOHENSTEIN, MADDEN,

DEASY, SANCHEZ AND BENHAM, MARCH 30, 2023

REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,

MARCH 30, 2023

AN ACT

Amending the act of December 13, 1988 (P.L.1190, No.146),

entitled "An act establishing standards and qualifications by

which local tax authorities in counties of the first and

second class may make special real property tax relief

provisions," further providing for title, for short title,

for declaration of policy and legislative intent, for

definitions, for deferral or exemption authority, for

conditions of deferral or exemption and for retroactive

application.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1 of the act of December 13, 1988

(P.L.1190, No.146), known as the First and Second Class County

Property Tax Relief Act, is amended to read:

Section 1. The title and sections 1 and 2 of the act of

December 13, 1988 (P.L.1190, No.146), known as the First and

Second Class County Property Tax Relief Act, are amended to

read:

AN ACT

Establishing standards and qualifications by which local tax

authorities [in counties of the first and second class] may

make special real property tax relief provisions.

Section 1. Short title.

This act shall be known and may be cited as the [First and

Second Class County] Longtime Owner-Occupant Property Tax Relief

Act.

Section 2. Declaration of policy and legislative intent.

In recognition of the severe economic circumstances of

certain longtime owner-occupants of residences who are faced

with rising living costs and constantly increasing tax burdens

in areas where real property values have risen markedly as a

consequence of the renovation of other deteriorating residences

or the construction of new residences, the General Assembly,

pursuant to section 2(b)(v) of Article VIII of the Constitution

of Pennsylvania, considers it to be a matter of sound public

policy for [counties of the first and second class] local taxing

authorities to adopt uniform special real property tax relief

provisions in order to allow longtime owner-occupants of

residences to remain in peaceful possession of their homes.

Section 2. The definition of "longtime owner-occupant" in

section 3 of the act is amended and the section is amended by

adding a definition to read:

Section 3. 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:

"Local taxing authority." A county, city, borough,

incorporated town, township or school district which levies a

tax on real property.

"Longtime owner-occupant." Any person who for at least:

(1) ten continuous years, or such longer period of time

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as required by the governing body of the municipality loca l

taxing authorit y under section 4(d), has owned and has

occupied the same dwelling place as a principal residence and

domicile[, or any person who for at least]; or

(2) five years, or such longer period of time as

required by the governing body of the municipality local

taxing authorit y under section 4(d), has owned and occupied

the same dwelling as a principal residence and domicile if

that person received assistance in the acquisition of the

property as part of a government or nonprofit housing

program.

"Municipality." Any of the following:

(1) a county of the first class;

(2) a county of the second class; or

(3) a city of the second class.

* * *

Section 3. Sections 4 and 6 of the act are amended to read:

Section 3. Sections 4, 5 and 6 of the act are amended to

read:

Section 4. Deferral or exemption authority.

(a) Adoption of uniform provisions.--The governing body of a

[county of the first and second class] municipality local taxing

authority shall have the power to provide, by ordinance or

resolution, for uniform special real property tax provisions

granting longtime owner-occupants a deferral or exemption or

combination thereof, in the payment of that portion of an

increase of real property taxes on a principal residence which

is due to an increase in the market value of the [real property]

principal residence as a consequence of the refurbishing or

renovating of other [residences] real property or the

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construction of new [residences] real property in long-

established [residential] areas or areas of deteriorated, vacant

or abandoned homes and properties.

(b) Designation of areas.--The governing body of a [county

of the first and second class] municipality local taxing

authority is authorized to enact ordinances or resolutions which

provide for the designation of areas eligible for the special

real property tax provisions pursuant to this act. Before

enacting an ordinance or resolution which proposes designating

such an area, the governing body shall conduct a public hearing

on the proposed ordinance or resolution.

[(c) Second class county school districts and

municipalities.--

(1) School districts and municipalities within second

class counties shall have authority to determine their

participation in this program within their taxing

jurisdiction.]

(2) A city of the second class shall have the authority

to adopt a real property tax relief program for longtime

owner-occupants under this act regardless of whether a county

of the second class has adopted a program.

(d) Duration of owning and occupying dwellings.--The

governing body of a municipality local taxing authority may

require longer periods of ownership and occupation of dwellings

than specified in the definition of "longtime owner-occupant" in

section 3.

Section 5. Conditions of deferral or exemption.

(a) General rule.--Any deferral or exemption of payment of

an increase in real property taxes granted pursuant to this act

shall be limited to real property which meets all of the

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following conditions:

(1) The property is owned and occupied by a longtime

owner-occupant.

(2) The property is the principal residence and domicile

of the longtime owner-occupant.

(b) Penalties and interest.--No penalties and interest shall

accrue on the portion of the deferral pursuant to this act.

[(b.1) Counties of the first class.--Upon the determination

by the governing body of a county of the first class to provide

relief authorized by this act, such relief shall apply to real

property taxes owed either to a city or school district of the

first class.]

(1) Upon the determination by the governing body of a

county of the first class to provide relief authorized by

this act:

(i) For tax years 2014 through 2023, the governing

body shall use financial need or age, or both, of the

longtime owner-occupant to determine eligibility.

[(ii) Beginning with tax year 2024, the governing

body may use financial need or age, or both, of the

longtime owner-occupant to determine eligibility.]

(2) [School districts and municipalities within a county

of the second class] Except as provided under paragraph (1),

a political subdivision may determine whether financial need,

age, or both, of the longtime owner-occupant shall be used to

determine eligibility.

Section 6. Retroactive application.

Data used by the governing body of a [county of the first and

second class] municipality local taxing authority to determine

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if the principal residence of a longtime owner-occupant is

eligible for either a tax deferral or exemption under the

provisions of this act may be applied retroactively to November

6, 1984.

Section 4. This act shall take effect in 60 days.

Section 4. The Secretary of the Commonwealth shall transmit

notice to the Legislative Reference Bureau for publication in

the next available issue of the Pennsylvania Bulletin that a

constitutional amendment to section 2(b)(v) of Article VIII of

the Constitution of Pennsylvania has been approved to authorize

the General Assembly to, by law, establish standards and

qualifications by which all local taxing authorities may make

uniform special real property tax provisions applicable to

taxpayers who are longtime owner-occupants as shall be defined

by the General Assembly of residences in areas where real

property values have risen markedly as a consequence of the

refurbishing or renovating of other deteriorating residences or

the construction of new residences.

Section 5. This act shall take effect as follows:

(1) This section and section 4 of this act shall take

effect immediately.

(2) The remainder of this act shall take effect upon

publication of the notice under section 4.

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