Bill Text: PA SB1222 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for certification and calculation of minimum and maximum modifiers and for the Property Tax Relief Reserve Fund; providing for senior citizen tax relief; and further providing for State property tax reduction allocation.

Spectrum: Slight Partisan Bill (Republican 12-5)

Status: (Introduced - Dead) 2011-08-03 - Referred to FINANCE [SB1222 Detail]

Download: Pennsylvania-2011-SB1222-Introduced.html

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PRINTER'S NO. 1504
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1222 Session of2011
INTRODUCED BY PILEGGI, BROWNE, VOGEL, TARTAGLIONE, FONTANA, BAKER, BOSCOLA, RAFFERTY, ERICKSON, ARGALL, SOLOBAY, SCHWANK, WAUGH, FOLMER, YUDICHAK, TOMLINSON AND MENSCH, AUGUST 3, 2011
REFERRED TO FINANCE, AUGUST 3, 2011
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," further providing for
certification and calculation of minimum and maximum
modifiers and for the Property Tax Relief Reserve Fund;
providing for senior citizen tax relief; and further
providing for State property tax reduction allocation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 503(e)(2) introductory paragraph of the
act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as
the Taxpayer Relief Act, is amended and the subsection is
amended by adding a paragraph to read:
Section 503. Certification; calculation of minimum and maximum
modifiers.
* * *
(e) Distribution.--
* * *
(2) For fiscal year 2009-2010 [and each fiscal year
thereafter], the secretary shall distribute the difference
between the amount certified under subsection (a)(1)(i) and
the sum of all of the following:
* * *
(3) For fiscal year 2012-2013 and each fiscal year
thereafter, the secretary shall distribute the difference
between the amount certified under subsection (a)(1)(i) and
the sum of all of the following:
(i) The difference between the sum of:
(A) the amount of approved claims to be paid in
the next fiscal year under section 1304(a)(2)(i) and
(3); and
(B) the amount of approved claims paid in the
2006-2007 fiscal year under section 1304(a)(1).
(ii) The sum of all of the following:
(A) The amount sufficient to fund reimbursements
to eligible school districts pursuant to section 324.
The amount deducted under this clause shall be
calculated based on the information provided by
school districts under subsection (b)(2).
(B) The amount of approved claims under section
704.
(C) The amount of approved claims under section
1304(a)(2)(ii).
(D) The amount of payments to school districts
under section 504.1.
Section 2. Section 504(d)(1) of the act is amended to read:
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Section 504. Property Tax Relief Reserve Fund.
* * *
(d) Transfers.--
(1) The secretary may authorize a transfer from the
Property Tax Relief Reserve Fund to the fund if the amount
for distribution under section 503(e) in 2013 is less than
the amount for distribution under section 503(e) [made in the
prior year] in 2012 or any year thereafter. [The] Beginning
in 2014 and each year thereafter, the amount of the transfer
under this subsection shall be equal to the difference
between the amount for distribution under section 503(e) and
the amount for distribution under section 503(e) made in the
prior year.
* * *
Section 3. The act is amended by adding a section to read:
Section 504.1. Senior citizen tax relief.
(a) Tax freeze.--Notwithstanding any other law, an eligible
claimant shall be entitled to a freeze of school property taxes
imposed by a school district on the person's homestead and shall
not be required to pay any increases in those school property
taxes in excess of the claimant's base payment.
(b) Application.--An eligible claimant must apply for the
tax freeze under subsection (a) by filing the following with the
school district imposing the school property tax on a form
prescribed by the department:
(1) A request for the tax freeze and a copy of the most
recent school property tax bill.
(2) Certification that the claimant or the claimant's
spouse is the owner of the homestead upon which the school
property taxes are imposed.
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(3) Receipts showing prompt payment of the current
year's school property tax liability.
(c) Timing.--
(1) The application under subsection (b) must be filed
within 45 days of the date the school property tax under
subsection (b)(1) is due.
(2) Within 15 days of receipt of an application, the
school district shall determine the claimant to be eligible
or ineligible. A determination of ineligibility under this
paragraph is subject to 2 Pa.C.S. Ch. 7 Subch. B (relating to
judicial review of local agency action).
(d) Termination.--
(1) Subject to paragraph (2), the tax rate on and the
assessment of school property tax shall become current on the
sale or transfer of the real property subject to the tax,
including any transfer under a recorded real property sales
contract.
(2) A tax freeze under this section shall remain in
effect upon the transfer of the affected real property to a
surviving spouse if, at the time of the death of the
claimant, the surviving spouse is at least 65 years of age or
will be 65 years of age within six months of the date of
death of the claimant.
(e) Commonwealth payment.--
(1) Beginning April 2012 and each April thereafter, the
secretary shall pay school districts, from the fund, the
amount of each eligible claimant's increase in school
property taxes in excess of the claimant's base payment.
Payments under this section shall be made prior to any
distribution of funds under subsection 504(c).
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(2) The school district shall provide notification and
documentation to the department of the total balance due to
the local taxing authorities for increases in school property
tax for eligible claimants.
(3) The department shall certify the total amount due to
increase in school property tax for each school district.
(f) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Base payment."
(1) Except as set forth in paragraph (2), the amount of
school property tax paid by the eligible claimant either in
the tax year beginning January 1, 2011, or in the first tax
year during which the claimant first becomes eligible,
whichever occurs later, on the principal residence in which
the claimant has maintained continuous occupancy and
ownership since either January 1, 2011, or the date the
claimant first becomes eligible.
(2) If the claimant purchases a principal residence
after January 1, 2011, or after the date upon which the
claimant first becomes eligible, the amount of school
property tax paid during the tax year in which the purchase
was made.
"Base year." The tax year under paragraph (1) or (2) of the
definition of "base payment."
"Eligible claimant." An individual who meets all of the
following for the base year and each succeeding year up to and
including the year for which the freeze is sought:
(1) Was at least 65 years of age or whose spouse, if a
member of the household, was at least 65 years of age during
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the base year.
(2) Has held a homestead exemption for the previous five
years.
(3) Has paid the full amount of property taxes due for
each succeeding year up to and including the year for which
the freeze is sought.
"Homestead." As defined in section 302.
"School property tax." The property tax levied by a school
district on the homestead of an eligible claimant. The term does
not include a penalty, interest or a payment made in lieu of
tax.
"School property tax increase." The increase in school
property tax levied in a calendar year over school property tax
levied in the base year.
Section 4. Section 505(a) of the act is amended by adding a
paragraph and the section is amended by adding a subsection to
read:
Section 505. State property tax reduction allocation.
(a) Administration.--The department shall do all of the
following:
* * *
(2.1) Prior to calculating the property tax reduction
under paragraph (3), the department shall calculate the
amount due to school districts under section 504.1.
* * *
(a.1) Initial payment.--For the fiscal year commencing July
1, 2012, and July 1 of each year thereafter, prior to making a
payment under subsection (b), the department shall pay to each
school district the amount due under section 504.1(e).
* * *
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Section 5. This act shall take effect immediately.
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