THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, TARTAGLIONE, ERICKSON, MUSTO, ORIE, WILLIAMS, RAFFERTY, BROWNE, KASUNIC, WAUGH, O'PAKE, KITCHEN, STACK AND LOGAN, JANUARY 20, 2009

REFERRED TO FINANCE, JANUARY 20, 2009  

AN ACT

Providing for an exemption from increases in school real

property taxes for eligible taxpayers because of their age

and income level and for the reimbursement of school

districts by the Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Senior

Citizens School Real Property Tax Freeze Act.

Section 2.  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:

"Base amount."  The amount of school real property taxes owed

on a homestead in the base year.

"Base year."  The tax year immediately preceding the tax year

during which an eligible taxpayer becomes 65 years of age. If

the taxpayer did not own the homestead during the tax year

immediately preceding the tax year during which the taxpayer

became 65 years of age, the base year shall be the first tax

year during which the eligible taxpayer owned the homestead and

was 65 years of age or older.

"Eligible taxpayer."  A taxpayer who meets the requirements

of section 5.

"Homestead."  Any real property that meets the requirements

of section 6.

"Household income."  The term shall have the same meaning

given to it under section 1303 of the act of June 27, 2006 (1st

Sp.Sess., P.L.1873, No.1), known as the Taxpayers Relief Act.

"Increase in school real property taxes."  An increase in the

school real property taxes above the base amount resulting from

a millage increase, a change in the assessment ratio or method

or by a revaluing of all properties.

Section 3.  School real property tax exemption.

Pursuant to section 2(b) of Article VIII of the Constitution

of Pennsylvania, school districts shall grant an annual

exemption from increases in school real property taxes for

eligible taxpayers because of their age and income level. This

exemption shall apply only to school real property taxes on an

eligible taxpayer's homestead.

Section 4.  Amount of exemption.

The annual school real property tax exemption granted under

this act shall equal the increase in school real property taxes

on the eligible taxpayer's homestead. The amount shall be

calculated by subtracting the amount of school real property

taxes on the homestead in the base year from the amount of

school real property taxes on the homestead in the tax year for

which a claim for an exemption is filed. The difference, if any,

shall be the amount of the exemption.

Section 5.  Eligible taxpayer.

The real property tax exemption shall apply to each taxpayer

in a school district meeting the following requirements:

(1)  The taxpayer is at least 65 years of age.

(2)  The taxpayer has an annual household income not

exceeding $40,000.

(3)  The taxpayer is not delinquent in paying school real

property taxes on the homestead.

(4)  The taxpayer has filed a claim for the exemption,

including all necessary and required information, on a

standard form. The school district shall make such forms

available upon request.

Section 6.  Homestead.

The exemption from the tax upon real property authorized

under section 3 shall apply only to school real property taxes

on an eligible taxpayer's homestead. For purposes of this act,

an eligible taxpayer's homestead is real property which

qualifies as a homestead under the act of June 27, 2006 (1st

Sp.Sess., P.L.1873, No.1), known as the Taxpayers Relief Act,

except real property which is rented or leased to the eligible

taxpayer.

Section 7.  Commonwealth reimbursement.

Pursuant to section 2(b) of Article VIII of the Constitution

of Pennsylvania, the Commonwealth of Pennsylvania shall

reimburse school districts for revenue losses occasioned by the

tax exemption provided by this act. The Department of Education

shall, upon submission by a school district of documentation as

the department may require, reimburse the school district for

the amount of revenue lost to the school district because of

this exemption. The reimbursement shall occur within 60 days of

submission of the documentation.

Section 8.  Applicability.

This act shall apply to the tax year beginning July 1, 2009,

and each tax year thereafter.

Section 9.  Effective date.

This act shall take effect immediately.