Pennsylvania SB 23: An Act amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in assessments of persons and property, providing for senior property tax freeze.

Bill Text

PRINTER'S NO. 8
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 23
Session of
2025
INTRODUCED BY FARRY, BARTOLOTTA, BOSCOLA, FONTANA, PENNYCUICK,
GEBHARD AND COSTA, JANUARY 22, 2025
REFERRED TO FINANCE, JANUARY 22, 2025
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. Cumulative 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)(1) 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 that 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 and, as
necessary, update 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 in accordance with Chapter 13 of the act
of June 2