Bill Text: PA HB396 | 2009-2010 | Regular Session | Introduced

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Bill Title: 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; and providing for limitations on refunds or forgiveness.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2009-02-13 - Referred to FINANCE [HB396 Detail]

Download: Pennsylvania-2009-HB396-Introduced.html

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PRINTER'S NO. 441
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 396 Session of2009
INTRODUCED BY YOUNGBLOOD, CRUZ, BROWN AND MELIO, FEBRUARY 13, 2009
REFERRED TO COMMITTEE ON FINANCE, 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; and providing for limitations on refunds or
forgiveness.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1, 2, 3 and 4 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] require 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, disabled
or senior citizens 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, disability or age, 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
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within cities of the first class to enable governing bodies
of cities of the first class to by ordinance relieve their
economic burden.
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:
"Dependent." A child who derives more than one-half of the
child's total support during the entire taxable year from a
taxpayer eligible for the special tax provisions of this act.
Any person who is a dependent pursuant to the provisions of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1
et seq.) during a taxable year shall prima facie be deemed a
dependent for the purpose of this act.
"Disabled person." A taxpayer 18 years of age or older 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.
"Homestead." A dwelling used as a home, occupied by a
taxpayer as a primary residence. The term includes, but is not
limited to, mobile homes which are assessed as realty for local
property tax purposes and the land upon which the mobile home is
situated and other similar living accommodations as well as a
part of a multidwelling or multipurpose building and a part of
the land upon which it is built to the extent that the eligible
taxpayer is chargeable by a city of the first class for property
taxes. The term also includes, but is not limited to, premises
occupied by an eligible taxpayer if he is required by law to pay
a property tax by reason of his ownership or rental of,
including a possessory interest in, the dwelling, the land or
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both. The term "by law" shall not be deemed to include a
contractual obligation between the eligible taxpayer and a
person who would otherwise be responsible to a city of the first
class for the payment of the tax. An owner includes a person in
possession under contract of sale, deed of trust, life estate,
joint tenancy or tenancy in common.
"Income." All income from whatever source derived,
including, but not limited to, salaries, wages, bonuses,
commissions, income from self-employment, alimony, support
money, cash public assistance and relief, the net amount of any
pensions or annuities, including railroad retirement benefits,
all benefits received under the Social Security Act (49 Stat.
620, 42 U.S.C. § 301 et seq.), except Medicare benefits, all
benefits received under State employment insurance laws and
veterans' disability payments, all interest received from the
Federal or any state government, or any instrumentality or
political subdivision thereof, realized capital gains, net
income from rentals, workers' compensation and the gross amount
of loss of time insurance benefits, life insurance benefits and
proceeds, except the first $10,000 of the total of death benefit
payment, and gifts of cash or property, other than transfers by
gift between members of a household, in excess of a total value
of $500, but shall not include surplus food or other relief in
kind supplied by a governmental agency or property tax rebate.
"Low-income taxpayer." A taxpayer whose income does not
exceed 150% of the maximum annual income allowable for an
eligible claimant to participate in the Commonwealth's program
for pharmaceutical assistance for the elderly, pursuant to the
[act of August 14, 1991 (P.L.342, No.36), known as the Lottery
Fund Preservation Act.] act of August 26, 1971 (P.L.351, No.91),
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known as the State Lottery Law.
"Poverty." An economic condition wherein the total amount of
household income is insufficient to adequately provide the
taxpayer, the taxpayer's spouse and dependent children with the
necessities of life. For the purpose of determining eligibility
for the tax exemptions and special tax provisions of this act, a
taxpayer is deemed to be living at the poverty level if the
taxpayer meets the low-income provisions defined under this act.
"Real estate taxes." All taxes on a homestead imposed or
authorized to be imposed for cities of the first class and
school districts of the first class.
"Senior citizen." A taxpayer who is 65 years of age or older
or whose spouse, if a member of the household, is 65 years of
age or older during a calendar year in which real property taxes
are due and payable or was a widow or widower of someone who was
65 years of age or older and was 50 years of age or older during
a calendar year or part thereof in which real estate taxes were
due and payable. The term "widow" or "widower" shall mean the
surviving wife or the surviving husband, as the case may be, of
a deceased individual who has not remarried.
"Special tax provision." The standards and qualifications
provided under this act to establish the eligibility for and the
refund or forgiveness of a portion of the taxpayer's real estate
tax liability.
"Taxpayer." A person responsible for the payment of real
estate taxes who is a low-income taxpayer, a disabled taxpayer
or a senior citizen taxpayer.
Section 4. Special tax provisions; refund or forgiveness of
real estate taxes.
(a) General rule.--Any taxpayer within a city of the first
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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] shall 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, disabled or senior citizens taxpayers
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, disability or age 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 or
disability requirements provided under his act, the amount of
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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] established 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, 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 2. The act is amended by adding a section to read:
Section 5.1. Limitations on refunds or forgiveness.
The total amount of refunds or forgiveness from real estate
tax liability under this act shall not exceed 25% of the State
allocation for the fiscal year of such refunds or forgiveness as
certified by the Department of Revenue from the fund established
in the act of (P.L. , No. ), known as the
Supplemental Homeowner Property Tax Relief Act.
Section 3. This act shall take effect in 60 days.
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