2010 Pennsylvania Code
Title 53 - MUNICIPALITIES GENERALLY
Chapter 85 - Assessments of Persons and Property Subchapters A through D (Reserved)

                                CHAPTER 85
                   ASSESSMENTS OF PERSONS AND PROPERTY

     Subchapter
        A. through D. (Reserved)
        E.  Real Estate Tax Deferral
        F.  Homestead Property Exclusion

        Enactment.  Chapter 85 was added May 5, 1998, P.L.301, No.50,
     effective January 1, 1999, unless otherwise noted.

                         SUBCHAPTERS A through D
                                (Reserved)

                               SUBCHAPTER E
                         REAL ESTATE TAX DEFERRAL

     Sec.
     8571.  Short title of subchapter.
     8572.  Definitions.
     8573.  Authority.
     8574.  Income eligibility.
     8575.  Tax deferral.
     8576.  Application procedure.
     8577.  Contents of application.
     8578.  Attachment and satisfaction of liens.
     § 8571.  Short title of subchapter.
        This subchapter shall be known and may be cited as the Real
     Estate Tax Deferment Program Act.
     § 8572.  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:
        "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
     entry into the tax deferral program.
        "Claimant."  A person whose household income does not exceed
     the limit provided for in section 8574 (relating to income
     eligibility).
        "Household income."  All income as defined in the act of
     March 11, 1971 (P.L.104, No.3), known as the Senior Citizens
     Rebate and Assistance Act, received by the claimant and by the
     claimant's spouse during the calendar year for which a tax
     deferral is claimed.
        "Increase in real property taxes."  An increase in the
     property taxes above the base payment resulting from a millage
     increase, a change in the assessment ratio or method or by a
     revaluing of all properties.
     § 8573.  Authority.
        All political subdivisions shall have the power and authority
     to grant annual tax deferrals in the manner provided in this
     subchapter.
     § 8574.  Income eligibility.
        A claimant shall be eligible for a tax deferral if the
     claimant and the claimant's spouse have a household income not
     exceeding the maximum household income eligibility limitations
     set forth in the act of March 11, 1971 (P.L.104, No.3), known as
     the Senior Citizens Rebate and Assistance Act.

        Cross References.  Section 8574 is referred to in sections
     8572, 8576 of this title.
     § 8575.  Tax deferral.
        (a)  Amount.--An annual real estate tax deferral granted
     under this subchapter shall equal the increase in real property
     taxes upon the homestead of the claimant.
        (b)  Prohibition.--No tax deferrals shall be granted if the
     total amount of deferred taxes plus the total amount of all
     other unsatisfied liens on the homestead of the claimant plus
     the outstanding principal on any and all mortgages on the
     homestead exceeds 85% of the market value of the homestead or if
     the outstanding principal on any and all mortgages on the
     homestead exceeds 70% of the market value of the homestead.
     Market value shall equal assessed value divided by the common
     level ratio as most recently determined by the State Tax
     Equalization Board for the county in which the property is
     located.
     § 8576.  Application procedure.
        (a)  Initial application.--Any person eligible for a tax
     deferral under this subchapter may apply annually to the
     political subdivision. In the initial year of application, the
     following information shall be provided in the manner required
     by the political subdivision:
            (1)  A statement of request for the tax deferral.
            (2)  A certification that the applicant or the applicant
        and his or her spouse jointly are the owners in fee simple of
        the homestead upon which the real property taxes are imposed.
            (3)  A certification that the applicant's homestead is
        adequately insured under a homeowner's policy to the extent
        of all outstanding liens.
            (4)  Receipts showing timely payment of the immediately
        preceding year's nondeferred real property tax liability.
            (5)  Proof of income eligibility under section 8574
        (relating to income eligibility).
            (6)  Any other information required by the political
        subdivision.
        (b)  Subsequent years.--After the initial entry into the
     program, a claimant shall remain eligible for tax deferral in
     subsequent years so long as the claimant continues to meet the
     eligibility requirements of this subchapter.
     § 8577.  Contents of application.
        Any application for a tax deferral distributed to persons
     shall contain the following:
            (1)  A statement that the tax deferral granted under this
        subchapter is provided in exchange for a lien against the
        homestead of the applicant.
            (2)  An explanation of the manner in which the deferred
        taxes shall become due, payable and delinquent and include,
        at a minimum, the consequences of noncompliance with the
        provisions of this subchapter.
     § 8578.  Attachment and satisfaction of liens.
        (a)  Nature of lien.--All taxes deferred under this
     subchapter shall constitute a prior lien on the homestead of the
     claimant in favor of the political subdivision and shall attach
     as of the date and in the same manner as other real estate tax
     liens. The deferred taxes shall be collected as other real
     estate tax liens, but the deferred taxes shall be due, payable
     and delinquent only as provided in subsection (b).
        (b)  Payment.--
            (1)  All or part of the deferred taxes may at any time be
        paid to the political subdivision.
            (2)  In the event that the deferred taxes are not paid by
        the claimant or the claimant's spouse during his or her
        lifetime or during their continued ownership of the
        homestead, the deferred taxes shall be paid either:
                (i)  prior to the conveyance of the homestead to any
            third party; or
                (ii)  prior to the passing of the legal or equitable
            title, either by will or by statute, to the heirs of the
            claimant or the claimant's spouse.
            (3)  The surviving spouse of a claimant shall not be
        required to pay the deferred taxes by reason of his or her
        acquisition of the homestead due to death of the claimant as
        long as the surviving spouse maintains his or her domicile in
        the property. The surviving spouse may continue to
        participate in the tax deferral program in subsequent years
        provided he or she is eligible under the provisions of this
        subchapter.

                               SUBCHAPTER F
                       HOMESTEAD PROPERTY EXCLUSION

     Sec.
     8581.  Short title of subchapter.
     8582.  Definitions.
     8583.  Exclusion for homestead property.
     8584.  Administration and procedure.
     8585.  Exclusion for farmstead property.
     8586.  Limitations.
     8587.  Uniform application.

        Effective Date.  Section 12(2) of Act 50 of 1998 provided
     that Subchapter F shall take effect July 1, 1998.
     § 8581.  Short title of subchapter.
        This subchapter shall be known and may be cited as the
     Homestead Property Exclusion Program Act.
     § 8582.  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:
        "Assessor."  The chief assessor of the county, the equivalent
     position in a home rule county or the equivalent position in a
     city of the third class that performs its own assessments of
     real property.
        "Board."  Any of the following:
            (1)  "Board."  As defined in the act of June 26, 1931,
        (P.L.1379, No.348), referred to as the Third Class County
        Assessment Board Law.
            (2)  "Board."  As defined in the act of May 21, 1943
        (P.L.571, No.254), known as The Fourth to Eighth Class County
        Assessment Law.
            (3)  "Board of Property Assessment, Appeals and Review."
        The Board of Property Assessment, Appeals and Review in a
        county of the second class under the act of June 21, 1939
        (P.L.626, No.294), referred to as the Second Class County
        Assessment Law.
            (4)  "Board of Revision of Tax and Appeals."  The board
        of revision of taxes and appeals in cities of the third
        class.
        "Common level ratio."  The ratio of assessed value to current
     market value used generally in the county as last determined by
     the State Tax Equalization Board under the act of June 27, 1947
     (P.L.1046, No.447), referred to as the State Tax Equalization
     Board Law.
        "Established predetermined ratio."  The ratio of assessed
     value to market value established by the board of county
     commissioners and uniformly applied in determining assessed
     value in any year.
        "Farmstead."  All buildings and structures on a farm not less
     than ten contiguous acres in area, not otherwise exempt from
     real property taxation or qualified for any other abatement or
     exclusion pursuant to any other law, that are used primarily to
     produce or store any farm product produced on the farm for
     purposes of commercial agricultural production, to house or
     confine any animal raised or maintained on the farm for the
     purpose of commercial agricultural production, to store any
     agricultural supply to be used on the farm in commercial
     agricultural production or to store any machinery or equipment
     used on the farm in commercial agricultural production. This
     term shall only apply to farms used as the domicile of an owner.
        "Farmstead property."  A farmstead for which an application
     has been submitted and approved under section 8584 (relating to
     administration and procedure).
        "Governing body."  The board of county commissioners,
     including the successor in function to the board of county
     commissioners in a county which has adopted a home rule charter
     under the former act of April 13, 1972 (P.L.184, No.62), known
     as the Home Rule Charter and Optional Plans Law, under Subpart E
     of Part III (relating to home rule and optional plan government)
     or under Article XXXI-C of the act of July 28, 1953 (P.L.723,
     No.230), known as the Second Class County Code, city council,
     borough council, incorporated town council, board of township
     commissioners, board of township supervisors, a governing
     council of a home rule municipality or optional plan
     municipality, a governing council of any similar general purpose
     unit of government which may hereafter be created by statute or
     a board of school directors of a school district.
        "Median assessed value."  The value which is the middle point
     in the sequential distribution of assessed values, above and
     below which exist an equal number of assessed values.
     § 8583.  Exclusion for homestead property.
        (a)  General rule.--The governing body of a political
     subdivision may exclude from taxation a fixed dollar amount of
     the assessed value of each homestead property in the political
     subdivision consistent with section 8586 (relating to
     limitations).
        (b)  Jurisdictions crossing county lines.--If a political
     subdivision is located in more than one county, the exclusion
     established under subsection (a) for each county portion of the
     political subdivision shall be uniform after adjustment for the
     common level ratios in the respective counties.
        (c)  Split rate taxes.--In political subdivisions where
     different millage rates are applied to land and the improvements
     upon land, the exclusion established under subsection (a) shall
     be applied first to the value of the improvements, and the
     remainder of the exclusion, if any, shall be applied to the
     value of the land.
        (d)  New construction.--The exclusion authorized under
     subsection (a) for a dwelling constructed during the taxable
     year and used as homestead property shall be prorated in a
     manner consistent with the assessment of real property taxes on
     that dwelling.
        (e)  Reassessment.--After a revision of assessments by means
     of revaluing all properties, the governing body of the political
     subdivision providing an exclusion under this section shall
     adjust the amount of the exclusion for homestead property as
     follows:
            (1)  if the assessment base is revised by applying a
        change in the established predetermined ratio, the exclusion
        for homestead property shall be adjusted by the percentage
        change between the existing predetermined ratio and the newly
        established predetermined ratio; or
            (2)  if the assessor performs a revision of assessments
        by revaluing all properties and applying an established
        predetermined ratio, the exclusion for homestead property
        shall be adjusted by dividing the exclusion for homestead
        property for the year preceding the revision of assessments
        by the common level ratio and multiplying the quotient of
        that calculation by the newly established predetermined
        ratio.

        Cross References.  Section 8583 is referred to in sections
     8585, 8586, 8717 of this title.
     § 8584.  Administration and procedure.
        (a)  Application; determinations.--The owner or owners of
     real property seeking to have property approved as homestead
     property or farmstead property shall file an application with
     the assessor on the form developed under section 8587 (relating
     to uniform application). Determinations with respect to the
     qualification of all or a part of a parcel of real property as
     homestead property or farmstead property shall be made by the
     assessor.
        (b)  Filing deadlines; renewal of application.--Applications
     shall be filed with the assessor not later than March 1 of each
     year. The governing body of a county may adopt a schedule for
     review or reapplication for real property previously approved as
     homestead property or farmstead property.
        (c)  Notice of applications and deadlines.--The assessor
     shall provide sufficient notice to the public regarding the
     availability of applications to designate real property as
     homestead property or farmstead property and all filing
     deadlines. The assessor shall make applications available at
     least 75 days before the filing deadline.
        (d)  Denial of application.--The assessor shall provide to
     each property owner whose application for approval as homestead
     property or farmstead property is being denied in whole or in
     part a written notice of denial by first class mail not later
     than 120 days after the filing deadline. The notice shall
     include all reasons for denial. Failure by the assessor to
     provide notice under this subsection shall be deemed to be
     approval of the application.
        (e)  Appeals of assessor's decision.--An owner aggrieved by
     the decision of the assessor may appeal to the board for a
     review of the decision in a manner consistent with the
     provisions for appeal of assessments under the applicable
     assessment law. Appeals under this subsection shall be limited
     to whether the application meets the requirements of subsections
     (a) and (b) or whether the parcel for which the appeal is made
     meets the definition of "farmstead property" or "homestead
     property."
        (f)  Other appeals.--Appeals regarding the assessed value of
     real property under the applicable assessment law shall be based
     on the assessed value of the real property before application of
     the exclusions for homestead property or farmstead property. The
     issue of qualification as homestead property or farmstead
     property shall not be raised in an appeal except as provided in
     subsection (e).
        (g)  False or fraudulent applications.--The assessor may
     select, randomly or otherwise, applications filed under
     subsection (a) to review for false or fraudulent information.
        (h)  Penalties.--Any person who files an application under
     subsection (a) which is false as to any material matter shall:
            (1)  pay any taxes which would have been due but for the
        false application, plus simple interest computed at the rate
        provided in section 806 of the act of April 9, 1929 (P.L.343,
        No.176), known as The Fiscal Code;
            (2)  pay a penalty equal to 10% of the unpaid taxes
        computed under paragraph (1); and
            (3)  upon conviction for filing an application under
        subsection (a) which a person knows to be fraudulent, be
        guilty of a misdemeanor of the third degree and be sentenced
        to pay a fine not exceeding $2,500.
        (i)  Reports.--At the same time as the assessor certifies the
     tax duplicate, the assessor shall provide to the governing
     bodies of the county and each political subdivision within the
     county upon request and at no charge a certified report listing
     at least all of the following information:
            (1)  The parcel number of each parcel which is approved,
        in whole or in part, as homestead property.
            (2)  The assessed value of each parcel which is approved,
        in whole or in part, as homestead property.
            (3)  The portion of the assessed value of each parcel
        listed under paragraph (2) which is approved as homestead
        property.
            (4)  The median assessed value of the homestead property
        listed in paragraph (3).
            (5)  The parcel number of each parcel which is approved,
        in whole or in part, as farmstead property.
            (6)  The assessed value of each parcel which is approved,
        in whole or in part, as farmstead property.
            (7)  The portion of the assessed value of each parcel
        listed under paragraph (6) which is approved as farmstead
        property.
     The governing body of the county may set reasonable fees for
     providing customized reports or services not otherwise required
     under this chapter or other applicable law to political
     subdivisions.
        (j)  Notification on change of use.--
            (1)  A property owner whose property is approved as
        homestead property or farmstead property and which property
        no longer qualifies as homestead property or farmstead
        property shall notify the assessor within 45 days of the date
        the property no longer qualifies as homestead property or
        farmstead property. Failure to notify the assessor as
        required by this subsection shall be treated in the same
        manner as a false application under subsection (g).
            (2)  The recorder of deeds shall periodically provide to
        the assessor a list of real property conveyance documents
        which have been presented for recording. The list shall
        include the name of the grantor and the address of the
        property. For the purposes of this paragraph, the word
        "document" shall have the meaning ascribed to it in section
        1101-C of the Tax Reform Code.

        Cross References.  Section 8584 is referred to in sections
     8401, 8582, 8586, 8587 of this title.
     § 8585.  Exclusion for farmstead property.
        (a)  Authorization.--The exclusion for farmstead property
     shall be authorized pursuant to section 2(b)(i) of Article VIII
     of the Constitution of Pennsylvania. This exclusion shall apply
     uniformly to each farmstead property within the taxing
     jurisdiction.
        (b)  General rule.--Any governing body that excludes a
     portion of the value of homestead property under section 8583
     (relating to exclusion for homestead property) shall exclude a
     portion of the assessed value of each farmstead property in the
     political subdivision by a fixed dollar amount established by
     its governing body, not to exceed the amount of the exclusion
     for homestead property under section 8583. The exclusion for
     farmstead property shall be in addition to any exclusion for
     homestead property for which the dwelling on the farm may
     qualify.
        (c)  Farmstead crossing county lines.--If a political
     subdivision is located in more than one county, the exclusion
     for farmstead property computed under subsection (a) for each
     county portion of the political subdivision shall be uniform
     after adjustment for the common level ratios in the respective
     counties.
        (d)  New construction.--The exclusion allowed under
     subsection (b) for a building constructed during the taxable
     year and used as farmstead property shall be prorated in a
     manner consistent with the assessment of real property taxes on
     that building.
        (e)  Reassessment.--After a revision of assessments by means
     of revaluing all properties, the governing body of the political
     subdivision providing an evaluation under this section shall
     adjust the amount of the exclusion for farmstead property as
     follows:
            (1)  if the assessment base is revised by applying a
        change in the established predetermined ratio, the exclusion
        for farmstead property shall be adjusted by the percentage
        change between the existing predetermined ratio and the newly
        established predetermined ratio; or
            (2)  if performing a revision of assessments by revaluing
        all properties and applying an established predetermined
        ratio, the exclusion for farmstead property shall be adjusted
        by dividing the exclusion for farmstead property for the year
        preceding the revision of assessments by the common level
        ratio and multiplying the quotient of that calculation by the
        newly established predetermined ratio.

        Cross References.  Section 8585 is referred to in section
     8586 of this title.
     § 8586.  Limitations.
        (a)  Limit on exclusion.--
            (1)  In accordance with the limits established on the
        exclusion for homestead property in Article VIII of the
        Constitution of Pennsylvania, no governing body of a
        political subdivision shall authorize an exclusion for
        homestead property in excess of the amount which is one-half
        of the median assessed value of homestead property in the
        political subdivision. The median assessed value of homestead
        property shall be determined by the information provided to
        the governing body under section 8584(i) (relating to
        administration and procedure).
            (2)  For the purposes of calculating the limit on the
        exclusion under paragraph (1), a political subdivision that
        is located in more than one county shall determine the median
        assessed value of homestead property for the entire political
        subdivision after dividing the assessed value of each
        homestead property by the common level ratio of the county in
        which the homestead property is located.
        (b)  Prohibition.--The governing body of the political
     subdivision may not increase the millage rate of its tax on real
     property to pay for the exclusions authorized by sections 8583
     (relating to exclusion for homestead property) and 8585
     (relating to exclusion for farmstead property).

        Cross References.  Section 8586 is referred to in sections
     8583, 8717 of this title.
     § 8587.  Uniform application.
        An application form for use by assessors under section
     8584(a) (relating to administration and procedure) shall be
     developed by the Department of Community and Economic
     Development and published in the Pennsylvania Bulletin by
     September 30, 1998.

        Cross References.  Section 8587 is referred to in section
     8584 of this title.