THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY YOUNGBLOOD, CRUZ, BROWN AND MURT, FEBRUARY 13, 2009

REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 13, 2009  

AN ACT

Amending the act of July 2, 1996 (P.L.529, No.91), entitled "An

act implementing the provisions of section 2(b)(ii) of

Article VIII of the Constitution of Pennsylvania by

authorizing cities of the first class to provide for special

tax provisions relating to real property taxes for certain

persons who meet the established standards and qualifications

for age and poverty," further providing for construction, for

declaration of policy, for definitions and for special tax

provisions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1 and 2 of the act of July 2, 1996 (P.L.

529, No.91), entitled "An act implementing the provisions of

section 2(b)(ii) of Article VIII of the Constitution of

Pennsylvania by authorizing cities of the first class to provide

for special tax provisions relating to real property taxes for

certain persons who meet the established standards and

qualifications for age and poverty," are amended to read:

Section 1.  Construction.

This act shall be construed to authorize the governing bodies

of cities of the first class to provide by ordinance for the

implementation of the special tax provisions contained in this

act which allow for the refund or forgiveness of real property

tax liability of certain low-income senior citizens and

permanently disabled persons attributable to real property tax

rate increases and increases in the assessed value of the low-

income senior citizen's homestead, thereby implementing section

2(b)(ii) of Article VIII of the Constitution of Pennsylvania.

Section 2.  Declaration of policy.

(1)  In recognition of the powers contained in section

2(b)(ii) of Article VIII of the Constitution of Pennsylvania

which provides therein for the establishing as a class or

classes of subjects of taxation the property or privileges of

persons who, because of poverty [or age], age or permanent

disability, are determined to be in need of special tax

provisions, it is the legislative intent and purpose of this

act to implement the powers under such constitutional

provision by establishing special tax provisions for a class

of persons within cities of the first class as provided in

this act.

(2)  Having determined that there are persons within

cities of the first class of this Commonwealth whose incomes

are such that the governing bodies of cities of the first

class may decide that the imposition of the full amount of

real estate taxes on these persons deprives them and their

dependents of the bare necessities of life and having further

determined that poverty is a relative concept inextricably

joined with actual income, the number of persons dependent

upon such income and the unlikelihood of a taxpayer being

able by reason of age to increase that income, it is deemed

to be a matter of public policy to provide special tax

provisions for that class of persons designated in this act

within cities of the first class to enable governing bodies

of cities of the first class to by ordinance relieve their

economic burden.

Section 2.  Section 3 of the act 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:

* * *

"Permanently disabled person." A person who is unable to

engage in any substantial gainful activity by reason of any

medically determinable physical or mental impairment which can

be expected to continue indefinitely.

* * *

Section 3.  Section 4 of the act is amended to read:

Section 4.  Special tax provisions; refund or forgiveness of

real estate taxes.

(a)  General rule.--Any taxpayer within a city of the first

class who meets the standards and qualifications established by

this act shall be deemed a separate class of subjects of

taxation, and, as such, each governing body of a city of the

first class may by ordinance provide that such taxpayers shall

be entitled to the benefit of the special tax provisions of this

act.

(b)  Refund or forgiveness of real estate taxes.--Pursuant to

the provisions of such ordinance, eligible taxpayers shall be

entitled to a refund or forgiveness which have been paid over to

or would, except for the provisions of this act, be payable to

cities of the first class and school districts of the first

class for real estate taxes authorized or imposed for city and

school district purposes in accordance with the following

provisions:

(1)  Low-income senior citizens taxpayers or taxpayers

with a permanent disability shall be entitled to receive

refunds or forgiveness of that part of their real estate tax

liability attributable to any real estate tax rate increase

or an increase in the assessed value of the taxpayer's

homestead occurring after the effective date of any ordinance

implementing this act.

(2)  In the event that a taxpayer who had previously been

eligible to receive refunds or forgiveness of taxes as

authorized by this act is no longer eligible by reason of

failing to meet the low-income requirement provided under

this act, the taxpayer shall be billed and shall pay real

estate taxes at the then current real estate tax rate and

assessed value. If for subsequent tax years a taxpayer

reestablishes eligibility for refunds or forgiveness of real

estate taxes by again meeting the low-income requirements

provided under this act, the amount of real estate taxes that

the taxpayer is eligible to have refunded or forgiven is that

part of their real estate tax liability attributable to any

real estate tax rate increase or an increase in the assessed

value of the taxpayer's homestead occurring no earlier than

the calendar year prior to the tax year for which the

taxpayer reestablishes eligibility.

(3)  The maximum amount of real estate taxes which may be

refunded or forgiven may be limited by ordinance.

(4)  If a homestead is owned for only a portion of a year

or is owned in part by a person who is not a low-income

taxpayer or taxpayer with a permanent disability, the tax

collector shall apportion the real estate taxes in accordance

with the period or portion of ownership of the eligible

taxpayer in determining the amount of refund or forgiveness

for which a taxpayer is eligible.

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