Bill Text: PA HB1249 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for the elimination of property tax for older Pennsylvanians, for a one-year cap on real property tax increases for school property tax purposes and for the elimination of authority to levy real property taxes for the support of public schools; imposing additional duties on the Department of Education; providing for the transfer of certain funds; and making related repeals.

Spectrum: Moderate Partisan Bill (Republican 35-4)

Status: (Introduced - Dead) 2009-04-13 - Referred to FINANCE [HB1249 Detail]

Download: Pennsylvania-2009-HB1249-Introduced.html

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PRINTER'S NO. 1482
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1249 Session of2009
INTRODUCED BY PERZEL, ADOLPH, BOYD, DeLUCA, J. EVANS, EVERETT, FAIRCHILD, FLECK, GEIST, GINGRICH, GODSHALL, GRELL, GROVE, HARRIS, HESS, W. KELLER, KILLION, MICOZZIE, MILNE, MOUL, MURT, MUSTIO, PETRI, PHILLIPS, PICKETT, PYLE, ROSS, SCAVELLO, SIPTROTH, SWANGER, TALLMAN, J. TAYLOR, WATSON, YOUNGBLOOD AND YUDICHAK, APRIL 13, 2009
REFERRED TO COMMITTEE ON FINANCE, APRIL 13, 2009
AN ACT
Providing for the elimination of property tax for older
Pennsylvanians, for a one-year cap on real property tax
increases for school property tax purposes and for the
elimination of authority to levy real property taxes for the
support of public schools; imposing additional duties on the
Department of Education; providing for the transfer of
certain funds; and making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Property Tax Elimination Act.
Section 2. Legislative intent and purpose.
(1) The General Assembly, in recognition of the powers
contained in section 2(b)(ii) of Article VIII of the
Constitution of Pennsylvania, which provides for the
establishment as a class or classes of subjects of taxation
on the property or privileges of persons who, because of
poverty, are determined to be in need of special tax
provisions, declares as its legislative intent and purpose to
implement that power under that constitutional provision by
establishing special tax provisions as provided under this
act.
(2) The General Assembly, having determined that there
are persons within this Commonwealth whose ages and incomes
are such that imposition of a property tax on them would
deprive them of the bare necessities of life, deems it to be
a matter of public policy to provide special tax provisions
for that class of persons to relieve their economic burden.
(3) The General Assembly finds and declares that a one-
year cap on school district real property taxes and the
elimination of authority to levy real property taxes for
support of the public schools is the most effective means to
promote a more equitable funding method for the support of
public education in this Commonwealth.
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:
"Claimant." An individual who seeks assistance under section
5.
"Department." The Department of Revenue of the Commonwealth.
"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.
"Program." The Property Tax Assistance Program.
"Property tax." A tax levied by a school district on real
property.
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"Taxpayer." Any person or entity who or which is subject to
a levy assessed on real property for the support of any public
school district in this Commonwealth.
Section 4. Administration.
The department shall have the following powers and duties in
the administration of section 6:
(1) Implementing the program.
(2) Prescribing an application form under section 5(c)
(1)(i).
(3) Promulgating regulations to implement section 6(c)
and (d).
Section 5. Administration by Department of Education.
The Department of Education shall have the following powers
and duties:
(1) In addition to any reports required under section
311 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), known as the Taxpayer Relief Act, the department shall
require all school districts to report the difference between
the revenues raised under the real property tax rate cap
established under section 7(a) for the fiscal year 2011-2012
and the amount of revenues that would otherwise be permitted
to be generated under the provisions of the Taxpayer Relief
Act.
(2) Calculate an amount of money necessary to distribute
to each school district the revenue necessary to make up the
difference between the revenues received and the revenues
that would otherwise be permitted to be generated under the
provisions of the Taxpayer Relief Act. If insufficient funds
exist to meet all the required costs, the department shall
reduce each school district allocation pro rata.
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(3) Provide for the payment of each school district's
allocation under paragraph (2).
Section 6. Program.
(a) Establishment.--The department shall establish the
Property Tax Assistance Program to assist eligible claimants in
the payment of school property taxes.
(b) Eligibility.--To be eligible to participate in the
program, a claimant must comply with all of the following:
(1) Be over 65 years of age.
(2) Have an annual household income of not more than
$40,000.
(c) Application.--The following shall apply:
(1) To participate in the program, a claimant must
submit to the department all of the following:
(i) An application on a form prescribed by the
department establishing eligibility under subsection (b).
(ii) The school property tax bill for which
assistance is sought.
(2) The material under paragraph (1) must be submitted
within 45 days of the date the property tax relating to the
school property tax bill under paragraph (1)(ii) is due.
(d) Determination.--The following shall apply:
(1) Within 15 days of receipt of an application under
subsection (c), the department shall determine if the
claimant is eligible or ineligible and shall notify the
claimant of its determination.
(2) Failure to comply with the time requirement under
paragraph (1) shall be deemed a determination of
ineligibility.
(3) A determination of ineligibility under paragraph (1)
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or (2) shall be subject to 2 Pa.C.S. Ch. 7 Subch. A (relating
to judicial review of Commonwealth agency action).
(e) Payment.--For each eligible claimant, the department
shall pay the tax bill under subsection (c)(1)(ii) in whole from
the Property Tax Relief Fund. Payment shall be mailed to the
claimant and shall be made out to the school district to which
the claimant is liable for property taxes.
Section 7. Real property tax rate cap and tax authority
elimination.
(a) Tax rate limitation.--For the tax year for school
districts beginning after December 31, 2010, no school district
or taxing authority on behalf of a school district shall have
any authority to increase the rate of tax levied and assessed on
real property beyond the rate of tax imposed for the school tax
year beginning immediately after December 31, 2009.
(b) Elimination of real property tax authority.--For all tax
years beginning after December 31, 2011, no school district and
no taxing authority acting on behalf of a school district shall
have any power to levy and assess any tax on real property for
the support of public education.
Section 8. Transfers.
(a) Annual transfer.--The State Treasurer shall transfer
$150,000,000 annually from the State Lottery Fund established by
the act of August 26, 1971 (P.L.351, No.91), known as the State
Lottery Law, to the Property Tax Relief Fund for payment of
claims under this act.
(b) Single transfer.--On the effective date of this section,
the State Treasurer shall transfer any money in the Property Tax
Relief Reserve Fund to the Property Tax Relief Fund.
(c) Transfer from Tax Stabilization Reserve Fund.--Effective
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September 1, 2010, all moneys in the Tax Stabilization Reserve
Fund shall be transferred to the Property Tax Relief Fund and be
used solly for the purposes of payments to school districts
under section 5.
Section 9. Repeals.
(1) The General Assembly declares that the repeal under
paragraphs (2) and (3) is necessary to effectuate this act.
(2) Article XVII-A of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code, is repealed.
(3) Sections 501, 502, 503(c), (d) and (e), 505, 704
and Chapter 13 of the act of June 27, 2006 (1st Sp.Sess.,
P.L.1873, No.1), known as the Taxpayer Relief Act, are
repealed.
Section 10. Effective date.
This act shall take effect as follows:
(1) Section 9(2) of this act shall take effect September
1, 2010.
(2) The remainder of the act shall take effect
immediately.
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