PRINTER'S NO. 128
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
156
Session of
2023
INTRODUCED BY FARRY, BOSCOLA, BARTOLOTTA, PENNYCUICK, COSTA AND
STEFANO, JANUARY 19, 2023
REFERRED TO FINANCE, JANUARY 19, 2023
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in assessments of persons and
property, providing for senior property tax freeze.
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 PROPERTY TAX FREEZE
Sec.
8591. Scope of subchapter.
8592. Definitions.
8593. Authority.
8594. Income eligibility.
8595. Tax freeze.
8596. Application procedure.
8597. Program performance and annual report.
8598. Report.
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§ 8591. Scope of subchapter.
This subchapter relates to senior citizen property tax
freeze.
§ 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:
"Applicant." An individual 65 years of age or older who has
established residency in this Commonwealth for five or more
years.
"Base payment." The amount of property tax paid by an
applicant in the base year.
"Base year." The tax year preceding the first tax year for
which a taxing authority implements the provisions of this
subchapter or the tax year immediately preceding an applicant's
approval for a tax freeze under section 8595 (relating to tax
freeze).
"Department." The Department of Community and Economic
Development of the Commonwealth.
"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 the applicant and by the
applicant's spouse during the calendar year for which a tax
deferral is claimed.
§ 8593. Authority.
All political subdivisions shall have the power and authority
to grant annual tax freezes in the manner provided in this
subchapter.
§ 8594. Income eligibility.
(a) Tax freeze eligibility.--In the initial year following
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the enactment of this subchapter, an applicant shall be eligible
for a tax freeze under this subchapter if:
(1) the applicant and the applicant's spouse have a
household income not exceeding $65,000 annually; or
(2) the applicant and the applicant's spouse real
property taxes exceed 10% of their household income.
(b) Subsequent eligibility.--In each subsequent year, the
income eligibility amount under subsection (a) shall be adjusted
in accordance with the Consumer Price Index for All Urban
Consumers (CPI-U).
§ 8595. Tax freeze.
(a) Amount frozen.--An applicant shall have real property
taxes frozen at the applicant's base year amount for as long as
the applicant remains eligible under this subchapter.
(b) Tax application.--A tax freeze granted by a political
subdivision under this subchapter shall only apply to an
applicant's primary residence.
(c) Change of residence.--In the event an applicant changes
residences within the political subdivision that implements this
program and the political subdivision deems an applicant
eligible under section 8594 (relating to income eligibility),
the real property tax freeze shall be transferred to the new
property and frozen at the rate at which the applicant purchases
the residence.
(d) Current rate.--The real property tax and the tax rate on
the residence shall become current on the sale or transfer of
the property for which the tax freeze is in effect.
§ 8596. Application procedure.
(a) Initial application.--Any person eligible for a tax
freeze under this subchapter may apply annually to a political
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subdivision. In the initial year of application, the following
information shall be provided in the application provided under
subsection (b):
(1) A certification that the applicant or the
applicant's spouse are jointly the owners in fee simple of
the homestead upon which the real property taxes are imposed.
(2) Receipts showing timely payment of the immediately
preceding year's base payment of real property taxes.
(3) Proof of income eligibility under section 8594
(relating to income eligibility).
(4) Other information required by the political
subdivision for the purpose of complying with section 8597(c)
(relating to program performance and annual report).
(b) Application form.--The department shall develop a
standardized application form for use by political subdivisions.
The application form shall be substantially similar to the
application form for property tax or rent rebate claims under
Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), known as the Taxpayer Relief Act. The department shall
transmit the application form to the Legislative Reference
Bureau for publication in the Pennsylvania Bulletin and transmit
the application to political subdivisions upon request. The
department may post the application on a publicly accessible
Internet website.
(c) Subsequent years.--After the political subdivision
authorizes an applicant's initial application, the applicant
shall remain eligible for a tax freeze in subsequent years so
long as the applicant annually refiles the application with the
political subdivision showing that the applicant continues to
meet the eligibility requirements of this subchapter.
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(d) Death of eligible applicant.--In the event of the death
of an eligible applicant, the applicant's spouse, if applicable,
shall be eligible for the tax freeze established under this
subchapter provided the spouse is 60 years of age or older and
meets the income eligibility requirements established in section
8594.
§ 8597. Program performance and annual report.
(a) Duties of department.--The department shall:
(1) Compile a list of political subdivisions that grant
a tax freeze under this subchapter.
(2) Compile the aggregate number of individuals granted
a tax freeze in each political subdivision that grants a tax
freeze under this subchapter.
(3) Calculate the difference between the total amount of
real property taxes payable by the individuals granted a tax
freeze under this subchapter and the total amount of real
property taxes that would have been payable by those
individuals but for the tax freeze.
(4) Publish an annual report with the information under
paragraphs (1), (2) and (3) and post the annual report on the
department's publicly accessible Internet website.
(b) Costs.--The department shall collect the information
under subsection (a) in a manner as to minimize the costs and
administrative requirements on political subdivisions.
(c) Duties of political subdivisions.--
(1) A political subdivision that has granted a tax
freeze under this subchapter shall notify the department in
writing and assist the department in compiling the
information under subsection (a).
(2) The reporting requirements under this subsection may
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be submitted electronically to the department.
§ 8598. Report.
The department shall submit a report with the information
under section 8597(a)(1), (2) and (3) (relating to program
performance and annual report) and any other relevant
information to the General Assembly before December 31 , 2029,
for the purpose of reviewing the eligibility criteria and
effectiveness of the tax freeze under this subchapter.
Section 2. The provisions of this act are severable. If any
provision of this act or its application to any person or
circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this act which can be given
effect without the invalid provision or application.
Section 3. This act shall take effect immediately.
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