Regular Session 2015-2016 Senate Bill 1214 P.N. 1743

PRINTER'S NO. 1743

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1214

Session of

2015

INTRODUCED BY FONTANA, SABATINA, BREWSTER, WARD, COSTA, HAYWOOD

AND RAFFERTY, MAY 2, 2016

REFERRED TO FINANCE, MAY 2, 2016

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," providing for supplemental

senior citizen property tax rebate assistance.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of June 27, 2006 (1st Sp.Sess., P.L.1873,

No.1), known as the Taxpayer Relief Act, is amended by adding a

chapter to read:

CHAPTER 13-A

SUPPLEMENTAL SENIOR CITIZEN PROPERTY TAX

REBATE ASSISTANCE

Section 1301-A. Scope of chapter.

This chapter provides senior citizens with assistance in the

form of supplemental property tax rebates.

Section 1302-A. Definitions.

The following words and phrases when used in this chapter

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 a supplemental

property tax and:

(1) was at least 66 years of age or whose spouse, if a

member of the household, was at least 66 years of age during

a calendar year in which real property taxes were due and

payable; and

(2) occupied the homestead for a period of at least 10

years immediately preceding the calendar year when the rebate

is claimed.

"Department." The Department of Revenue of the Commonwealth.

"Homestead." An owned dwelling, 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 in a

cooperative housing corporation.

(2) Mobile homes which are assessed as realty for local

property tax purposes and the land, if owned by the claimant,

upon which the mobile home is situated, and other 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 the claimant's

ownership of a dwelling located on land owned by a nonprofit

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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, 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.

"Household income." All income received by a claimant and

the claimant's spouse while residing in the homestead during the

calendar year for which a rebate is claimed.

"Income." All income from whatever source derived,

including, but not limited to:

(1) Salaries, wages, bonuses, commissions, income from

self-employment, alimony, support money, cash public

assistance and relief.

(2) The gross amount of any pensions or annuities,

including 50% of railroad retirement benefits for calendar

year 2016 and any year thereafter.

(3) Fifty percent of all benefits received under the

Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.),

except Medicare benefits, for calendar year 2016 and any year

thereafter.

(4) All benefits received under State unemployment

insurance laws and veterans' disability payments.

(5) All interest received from the Federal or any state

government or any instrumentality or political subdivision

thereof.

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(6) Realized capital gains and rentals.

(7) Workers' compensation.

(8) The gross amount of loss of time insurance benefits,

life insurance benefits and proceeds, except the first $5,000

of the total of death benefit payments.

(9) Gifts of cash or property, other than transfers by

gift between members of a household, in excess of a total

value of $300.

The term does not include surplus food or other relief in kind

supplied by a governmental agency, property tax rebate or

inflation dividend.

"Real property taxes." All taxes on a homestead, exclusive

of municipal assessments, delinquent charges and interest, due

and payable during a calendar year.

"Secretary." The Secretary of Revenue of the Commonwealth.

Section 1303-A. Property tax rebate.

(a) Schedule of rebates.--The amount of any claim for

property tax rebate for real property taxes due and payable

during calendar year 2016 and any year thereafter shall be

determined in accordance with the following schedule:

Household Income

Amount of Real Property

Taxes Allowed as Rebate

$ 0 - $ 50,000 $200

(b) Limitation on claims.--No claim shall be allowed if the

amount of property tax rebate computed in accordance with this

section is less than $10, and the maximum amount of property tax

rebate payable shall not exceed $200.

only a portion of a year or is owned in part by a person who

does not meet the qualifications for a claimant, exclusive of

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any interest owned by a claimant's spouse, the department shall

apportion the real property taxes in accordance with the period

or degree of ownership or eligibility of the claimant in

determining the amount of rebate for which a claimant is

eligible.

Section 1304-A. Filing of claim.

(a) General rule.--Except as otherwise provided in

subsection (b), a claim for property tax rebate shall be filed

with the department on or before June 30 of the year next

succeeding the end of the calendar year in which real property

taxes was due and payable.

(b) Exception.--A claim filed after the June 30 deadline

until December 31 of the calendar year shall be accepted by the

secretary as long as funds are available to pay the benefits to

the late filing claimant.

claim shall be made from the State Lottery Fund earlier than the

day following June 30 provided in this chapter 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 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 paid.

Section 1305-A. Proof of claim.

(a) Contents.--Each claim shall include:

(1) Reasonable proof of household income.

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(2) The size and nature of the property claimed as a

homestead.

(3) The tax receipt or other proof that the real

property taxes on the homestead have been paid.

(4) Reasonable proof of occupancy of the homestead for a

period of at least 10 years immediately preceding the

calendar year when the rebate is claimed.

(b) Direct payment of taxes not required.--It shall not be

necessary that the taxes were paid directly by the claimant if

the taxes have been paid when the claim is filed.

shall include proof that the claimant or the claimant's spouse

was at least 66 years of age during the calendar year in which

real property taxes were due and payable.

Section 1306-A. Incorrect claim.

Whenever on audit of a claim the department finds the claim

to have been incorrectly determined, it 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 1307-A. Funds for payment of claims.

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.

Section 1308-A. Claim forms and rules and regulations.

(a) General rule.--The department shall:

(1) Prescribe all necessary rules and regulations for

the implementation of this chapter.

(2) Receive all applications.

(3) Determine the eligibility of claimants.

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(4) Hear appeals.

(5) Disburse payments.

(6) 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 the 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, 2017,

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, by county and for

each household income level under section 1303-A(a).

(2) The total amount of rebates paid in the fiscal year

in which the report is issued with the information provided

by school district, by county and for each household income

level under section 1303-A(a).

Section 1309-A. 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

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assisted in the preparation or filing of a fraudulent claim

commits a misdemeanor of the third degree and, upon conviction,

shall be sentenced to pay a fine not exceeding $1,000 or to

imprisonment not exceeding one year, or both.

disallowed if the claimant received title to the homestead

primarily for the purpose of receiving property tax rebate.

Section 1310-A. 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 such action.

(b) Contents.--The petition shall set forth the grounds upon

which the claimant alleges that such 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.

(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 hearings as may be

necessary for the purpose of redetermination, and each

claimant who has duly filed a petition for redetermination

shall be notified by the department of the time when and the

place where the hearing in the claimant's case will be held.

(d) Time period for decision.--The department shall, after

receiving a filed petition for redetermination, dispose of the

matters raised by the petition and shall mail notice of the

department's decision to the claimant.

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Section 1311-A. Review by Board of Finance and Revenue.

(a) Right to review.--Within 90 days after the date of

official receipt by the claimant of notice mailed by the

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 under section 1310-A 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.

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 set

forth 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 any 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 it may take other action as it shall deem

necessary and consistent with the provisions of this chapter.

(f) Form of notice.--Notice of the action of the board shall

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be given by mail to the department and to the claimant.

Section 1312-A. Appeal.

A claimant aggrieved by a decision of the board may appeal

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 immediately.

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