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

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 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
Taxpayer Relief Act. The department shall transmit the
application form to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin and transmit the application form to political
subdivisions upon request. The department may post the
application form on a publicly accessible Internet website.
(c) Subsequent years.--After the political subdivision
authorizes an applicant's initial application, the applicant
shall remain eligible for a tax freeze in subsequent years so
long as the applicant annually refiles the application with the
political subdivision showing that the applicant continues to
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meet the eligibility requirements of this subchapter.
(d) Death of eligible applicant.--In the event of the death
of an eligible applicant, the applicant's spouse, if applicable,
shall be eligible for the tax freeze established under this
subchapter provided the spouse is 60 years of age or older and
meets the income eligibility requirements established in section
8594.
§ 8597. Program performance and annual report.
(a) Duties of department.--The department shall:
(1) Compile a list of political subdivisions that grant
a tax freeze under this subchapter.
(2) Compile the aggregate number of individuals granted
a tax freeze in each political subdivision that grants a tax
freeze under this subchapter.
(3) Calculate the difference between the total amount of
real property taxes payable by the individuals granted a tax
freeze under this subchapter and the total amount of real
property taxes that would have been payable by those
individuals but for the tax freeze.
(4) Prepare and post on the publicly accessible Internet
website of the department an annual report with the
information under paragraphs (1), (2) and (3).
(b) Costs.--The department shall collect the information
under subsection (a) in a manner that minimizes the costs and
administrative requirements on political subdivisions.
(c) Duties of political subdivisions.--
(1) A political subdivision that has granted a tax
freeze under this subchapter shall notify the department in
writing and assist the department in compiling the
information under subsection (a).
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(2) The reporting requirements under this subsection may
be submitted electronically to the department.
§ 8598. Cumulative report.
Not later than December 31, 2029, for the purpose of
reviewing the eligibility criteria and effectiveness of the tax
freeze under this subchapter , t he department shall submit to the
General Assembly a c umulative report with the information
contained in the annual reports under section 8597 (a)(4)
(relating to program performance and annual report) , along with
any other information that the department deems relevant.
Section 2. The provisions of this act are severable. If any
provision of this act or its application to any person or
circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this act which can be given
effect without the invalid provision or application.
Section 3. This act shall take effect immediately.
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