PRINTER'S NO. 2909
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2058
Session of
2019
INTRODUCED BY KEEFER, NOVEMBER 19, 2019
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 19, 2019
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in assessments of persons and
property, providing for senior citizen tax sale deferral.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 85 of Title 53 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter to read:
SUBCHAPTER G
SENIOR CITIZEN TAX SALE DEFERRAL
Sec.
8591. Scope of subchapter.
8592. Definitions.
8593. When tax sales to be deferred.
8594. Continuation of assessment.
8595. Income eligibility.
8596. Application procedure.
8597. Contents of application.
8598. Attachment and satisfaction of liens.
§ 8591. Scope of subchapter.
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This subchapter relates to senior citizen tax sale deferral.
§ 8592. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Claimant." An individual who is a senior citizen and whose
household income does not exceed the limit provided for in
section 8595 (relating to income eligibility).
"Farmstead property." As defined in section 8582 (relating
to definitions).
"Homestead property." As defined in section 8401 (relating
to definitions).
"Household income." All income as defined in section 1303 of
the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known
as the Taxpayer Relief Act, received by a claimant and the
claimant's spouse during a calendar year for which tax sale
deferral is claimed.
"Senior citizen." An individual who is at least 65 years of
age and has been a resident of this Commonwealth for a period of
at least five continuous years.
"Tax sale immunity." The right of a claimant to a deferral,
in accordance with this subchapter, from the procedure by which
a sheriff is authorized to conduct a sale of the claimant's
homestead property or farmstead property as a result of failure
to pay real property taxes on the property.
§ 8593. When tax sales to be deferred.
A political subdivision may not commence or continue tax sale
proceedings for unpaid real property taxes on homestead property
or farmstead property of a claimant and may not assess
additional penalties, fees, fines or penalties on the unpaid
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balance of the real property taxes, unless as provided in this
subchapter.
§ 8594. Continuation of assessment.
Notwithstanding the provisions of section 8593 (relating to
when tax sales to be deferred), a political subdivision may
continue to assess the homestead property or farmstead property
of a claimant who is entitled to tax sale deferral.
§ 8595. Income eligibility.
A claimant shall be eligible for tax sale deferral if the
claimant and the claimant's spouse have a household income not
exceeding 500% of the poverty threshold for a two-person
household as calculated by the United States Census Bureau.
§ 8596. Application procedure.
(a) Initial application.--A person eligible for tax sale
deferral may apply annually to the political subdivision. In the
initial year of application, the following information shall be
provided in the manner required by the political subdivision:
(1) A statement of request for the tax sale deferral.
(2) A certification that the applicant or the applicant
and his or her spouse jointly are senior citizens and the
owners in fee simple of the homestead property or farmstead
property upon which the real property taxes are imposed.
(3) A certification that the applicant's homestead
property or farmstead property is adequately insured under a
homeowner's policy to the extent of all outstanding liens.
(4) Proof of income eligibility under section 8595
(relating to income eligibility).
(5) Any other information required by the political
subdivision.
(b) Subsequent years.--After the initial approval of an
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application for tax sale deferral, the claimant shall remain
eligible for tax sale deferral in subsequent years so long as
the claimant continues to meet the eligibility requirements of
this subchapter.
§ 8597. Contents of application.
An application for tax sale deferral distributed to persons
shall contain the following:
(1) A statement that the tax sale deferral granted to
senior citizens under this subchapter is provided in exchange
for a lien against the homestead property or farmstead
property of the applicant.
(2) An explanation of the manner in which the deferred
tax sale shall occur, and the unpaid balance of the real
property taxes payable and include, at a minimum, the
consequences of noncompliance with the provisions of this
subchapter.
§ 8598. Attachment and satisfaction of liens.
(a) Nature of lien.--All taxes deferred under this
subchapter shall constitute a prior lien on the homestead
property or farmstead property of the claimant in favor of the
political subdivision and shall attach as of the date and in the
same manner as other real estate tax liens. The deferred taxes
shall be collected as other real estate tax liens, but the
deferred taxes shall be due, payable and delinquent only as
provided in this subchapter.
(b) Payment.--
(1) All or part of the deferred taxes may at any time be
paid to the political subdivision.
(2) In the event that the deferred taxes are not paid by
the claimant or the claimant's spouse during his or her
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lifetime or during their continued ownership of the homestead
property or farmstead property, the deferred taxes shall be
paid either:
(i) prior to the conveyance of the homestead
property or farmstead property to a third party; or
(ii) prior to the passing of the legal or equitable
title, either by will or by statute, to the heirs of the
claimant or the claimant's spouse.
(3) The surviving spouse of a claimant shall not be
required to pay the deferred taxes by reason of his or her
acquisition of the homestead property or farmstead property
due to death of the claimant as long as the surviving spouse
maintains his or her domicile in the property. The surviving
spouse may continue to participate in the tax sale deferral
program in subsequent years provided the surviving spouse is
eligible under the provisions of this subchapter.
Section 2. This act shall take effect in 60 days.
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