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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY YOUNGBLOOD, CRUZ, BROWN AND MURT, FEBRUARY 13, 2009 |
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| REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 13, 2009 |
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| AN ACT |
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1 | Amending the act of July 2, 1996 (P.L.529, No.91), entitled "An |
2 | act implementing the provisions of section 2(b)(ii) of |
3 | Article VIII of the Constitution of Pennsylvania by |
4 | authorizing cities of the first class to provide for special |
5 | tax provisions relating to real property taxes for certain |
6 | persons who meet the established standards and qualifications |
7 | for age and poverty," further providing for construction, for |
8 | declaration of policy, for definitions and for special tax |
9 | provisions. |
10 | The General Assembly of the Commonwealth of Pennsylvania |
11 | hereby enacts as follows: |
12 | Section 1. Sections 1 and 2 of the act of July 2, 1996 (P.L. |
13 | 529, No.91), entitled "An act implementing the provisions of |
14 | section 2(b)(ii) of Article VIII of the Constitution of |
15 | Pennsylvania by authorizing cities of the first class to provide |
16 | for special tax provisions relating to real property taxes for |
17 | certain persons who meet the established standards and |
18 | qualifications for age and poverty," are amended to read: |
19 | Section 1. Construction. |
20 | This act shall be construed to authorize the governing bodies |
21 | of cities of the first class to provide by ordinance for the |
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1 | implementation of the special tax provisions contained in this |
2 | act which allow for the refund or forgiveness of real property |
3 | tax liability of certain low-income senior citizens and |
4 | permanently disabled persons attributable to real property tax |
5 | rate increases and increases in the assessed value of the low- |
6 | income senior citizen's homestead, thereby implementing section |
7 | 2(b)(ii) of Article VIII of the Constitution of Pennsylvania. |
8 | Section 2. Declaration of policy. |
9 | (1) In recognition of the powers contained in section |
10 | 2(b)(ii) of Article VIII of the Constitution of Pennsylvania |
11 | which provides therein for the establishing as a class or |
12 | classes of subjects of taxation the property or privileges of |
13 | persons who, because of poverty [or age], age or permanent |
14 | disability, are determined to be in need of special tax |
15 | provisions, it is the legislative intent and purpose of this |
16 | act to implement the powers under such constitutional |
17 | provision by establishing special tax provisions for a class |
18 | of persons within cities of the first class as provided in |
19 | this act. |
20 | (2) Having determined that there are persons within |
21 | cities of the first class of this Commonwealth whose incomes |
22 | are such that the governing bodies of cities of the first |
23 | class may decide that the imposition of the full amount of |
24 | real estate taxes on these persons deprives them and their |
25 | dependents of the bare necessities of life and having further |
26 | determined that poverty is a relative concept inextricably |
27 | joined with actual income, the number of persons dependent |
28 | upon such income and the unlikelihood of a taxpayer being |
29 | able by reason of age to increase that income, it is deemed |
30 | to be a matter of public policy to provide special tax |
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1 | provisions for that class of persons designated in this act |
2 | within cities of the first class to enable governing bodies |
3 | of cities of the first class to by ordinance relieve their |
4 | economic burden. |
5 | Section 2. Section 3 of the act is amended by adding a |
6 | definition to read: |
7 | Section 3. Definitions. |
8 | The following words and phrases when used in this act shall |
9 | have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | * * * |
12 | "Permanently disabled person." A person who is unable to |
13 | engage in any substantial gainful activity by reason of any |
14 | medically determinable physical or mental impairment which can |
15 | be expected to continue indefinitely. |
16 | * * * |
17 | Section 3. Section 4 of the act is amended to read: |
18 | Section 4. Special tax provisions; refund or forgiveness of |
19 | real estate taxes. |
20 | (a) General rule.--Any taxpayer within a city of the first |
21 | class who meets the standards and qualifications established by |
22 | this act shall be deemed a separate class of subjects of |
23 | taxation, and, as such, each governing body of a city of the |
24 | first class may by ordinance provide that such taxpayers shall |
25 | be entitled to the benefit of the special tax provisions of this |
26 | act. |
27 | (b) Refund or forgiveness of real estate taxes.--Pursuant to |
28 | the provisions of such ordinance, eligible taxpayers shall be |
29 | entitled to a refund or forgiveness which have been paid over to |
30 | or would, except for the provisions of this act, be payable to |
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1 | cities of the first class and school districts of the first |
2 | class for real estate taxes authorized or imposed for city and |
3 | school district purposes in accordance with the following |
4 | provisions: |
5 | (1) Low-income senior citizens taxpayers or taxpayers |
6 | with a permanent disability shall be entitled to receive |
7 | refunds or forgiveness of that part of their real estate tax |
8 | liability attributable to any real estate tax rate increase |
9 | or an increase in the assessed value of the taxpayer's |
10 | homestead occurring after the effective date of any ordinance |
11 | implementing this act. |
12 | (2) In the event that a taxpayer who had previously been |
13 | eligible to receive refunds or forgiveness of taxes as |
14 | authorized by this act is no longer eligible by reason of |
15 | failing to meet the low-income requirement provided under |
16 | this act, the taxpayer shall be billed and shall pay real |
17 | estate taxes at the then current real estate tax rate and |
18 | assessed value. If for subsequent tax years a taxpayer |
19 | reestablishes eligibility for refunds or forgiveness of real |
20 | estate taxes by again meeting the low-income requirements |
21 | provided under this act, the amount of real estate taxes that |
22 | the taxpayer is eligible to have refunded or forgiven is that |
23 | part of their real estate tax liability attributable to any |
24 | real estate tax rate increase or an increase in the assessed |
25 | value of the taxpayer's homestead occurring no earlier than |
26 | the calendar year prior to the tax year for which the |
27 | taxpayer reestablishes eligibility. |
28 | (3) The maximum amount of real estate taxes which may be |
29 | refunded or forgiven may be limited by ordinance. |
30 | (4) If a homestead is owned for only a portion of a year |
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1 | or is owned in part by a person who is not a low-income |
2 | taxpayer or taxpayer with a permanent disability, the tax |
3 | collector shall apportion the real estate taxes in accordance |
4 | with the period or portion of ownership of the eligible |
5 | taxpayer in determining the amount of refund or forgiveness |
6 | for which a taxpayer is eligible. |
7 | Section 4. This act shall take effect in 60 days. |
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