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.

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
 1   Amending Title 53 (Municipalities Generally) of the Pennsylvania
 2      Consolidated Statutes, in assessments of persons and
 3      property, providing for senior property tax freeze.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Chapter 85 of Title 53 of the Pennsylvania
 7   Consolidated Statutes is amended by adding a subchapter to read:
 8                                 SUBCHAPTER G
 9                          SENIOR PROPERTY TAX FREEZE
10   Sec.
11   8591.   Scope of subchapter.
12   8592.   Definitions.
13   8593.   Authority.
14   8594.   Income eligibility.
15   8595.   Tax freeze.
16   8596.   Application procedure.
17   8597.   Program performance and annual report.
18   8598.   Cumulative report.
 1   § 8591.    Scope of subchapter.
 2      This subchapter relates to senior citizen property tax
 3   freeze.
 4   § 8592.    Definitions.
 5      The following words and phrases when used in this subchapter
 6   shall have the meanings given to them in this section unless the
 7   context clearly indicates otherwise:
 8      "Applicant."    An individual 65 years of age or older who has
 9   established residency in this Commonwealth for five or more
10   years.
11      "Base payment."      The amount of property tax paid by an
12   applicant in the base year.
13      "Base year."    The tax year preceding the first tax year for
14   which a taxing authority implements the provisions of this
15   subchapter or the tax year immediately preceding an applicant's
16   approval for a tax freeze under section 8595 (relating to tax
17   freeze).
18      "Department."    The Department of Community and Economic
19   Development of the Commonwealth.
20      "Household income."     All income as defined in section 1303 of
21   the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known
22   as the Taxpayer Relief Act, received by the applicant and by the
23   applicant's spouse during the calendar year for which a tax
24   deferral is claimed.
25   § 8593.    Authority.
26      All political subdivisions shall have the power and authority
27   to grant annual tax freezes in the manner provided in this
28   subchapter.
29   § 8594.    Income eligibility.
30      (a)     Tax freeze eligibility.--In the initial year following

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 1   the enactment of this subchapter, an applicant shall be eligible
 2   for a tax freeze under this subchapter if:
 3             (1)   the applicant and the applicant's spouse have a
 4      household income not exceeding $65,000 annually; or
 5             (2)   the applicant and the applicant's spouse real
 6      property taxes exceed 10% of their household income.
 7      (b)    Subsequent eligibility.--In each subsequent year, the
 8   income eligibility amount under subsection (a)(1) shall be
 9   adjusted in accordance with the Consumer Price Index for All
10   Urban Consumers (CPI-U).
11   § 8595.    Tax freeze.
12      (a)    Amount frozen.--An applicant shall have real property
13   taxes frozen at the applicant's base year amount for as long as
14   the applicant remains eligible under this subchapter.
15      (b)    Tax application.--A tax freeze granted by a political
16   subdivision under this subchapter shall only apply to an
17   applicant's primary residence.
18      (c)    Change of residence.--In the event that an applicant
19   changes residences within the political subdivision that
20   implements this program and the political subdivision deems an
21   applicant eligible under section 8594 (relating to income
22   eligibility), the real property tax freeze shall be transferred
23   to the new property and frozen at the rate at which the
24   applicant purchases the residence.
25      (d)    Current rate.--The real property tax and the tax rate on
26   the residence shall become current on the sale or transfer of
27   the property for which the tax freeze is in effect.
28   § 8596.    Application procedure.
29      (a)    Initial application.--Any person eligible for a tax
30   freeze under this subchapter may apply annually to a political

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 1   subdivision. In the initial year of application, the following
 2   information shall be provided in the application provided under
 3   subsection (b):
 4            (1)   A certification that the applicant or the
 5      applicant's spouse are jointly the owners in fee simple of
 6      the homestead upon which the real property taxes are imposed.
 7            (2)   Receipts showing timely payment of the immediately
 8      preceding year's base payment of real property taxes.
 9            (3)   Proof of income eligibility under section 8594
10      (relating to income eligibility).
11            (4)   Other information required by the political
12      subdivision for the purpose of complying with section 8597(c)
13      (relating to program performance and annual report).
14      (b)   Application form.--The department shall develop and, as
15   necessary, update a standardized application form for use by
16   political subdivisions. The application form shall be
17   substantially similar to the application form for property tax
18   or rent rebate claims in accordance with Chapter 13 of the act
19   of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
20   Taxpayer Relief Act. The department shall transmit the
21   application form to the Legislative Reference Bureau for
22   publication in the next available issue of the Pennsylvania
23   Bulletin and transmit the application form to political
24   subdivisions upon request. The department may post the
25   application form on a publicly accessible Internet website.
26      (c)   Subsequent years.--After the political subdivision
27   authorizes an applicant's initial application, the applicant
28   shall remain eligible for a tax freeze in subsequent years so
29   long as the applicant annually refiles the application with the
30   political subdivision showing that the applicant continues to

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 1   meet the eligibility requirements of this subchapter.
 2      (d)    Death of eligible applicant.--In the event of the death
 3   of an eligible applicant, the applicant's spouse, if applicable,
 4   shall be eligible for the tax freeze established under this
 5   subchapter provided the spouse is 60 years of age or older and
 6   meets the income eligibility requirements established in section
 7   8594.
 8   § 8597.    Program performance and annual report.
 9      (a)    Duties of department.--The department shall:
10             (1)   Compile a list of political subdivisions that grant
11      a tax freeze under this subchapter.
12             (2)   Compile the aggregate number of individuals granted
13      a tax freeze in each political subdivision that grants a tax
14      freeze under this subchapter.
15             (3)   Calculate the difference between the total amount of
16      real property taxes payable by the individuals granted a tax
17      freeze under this subchapter and the total amount of real
18      property taxes that would have been payable by those
19      individuals but for the tax freeze.
20             (4)   Prepare and post on the publicly accessible Internet
21      website of the department an annual report with the
22      information under paragraphs (1), (2) and (3).
23      (b)    Costs.--The department shall collect the information
24   under subsection (a) in a manner that minimizes the costs and
25   administrative requirements on political subdivisions.
26      (c)    Duties of political subdivisions.--
27             (1)   A political subdivision that has granted a tax
28      freeze under this subchapter shall notify the department in
29      writing and assist the department in compiling the
30      information under subsection (a).

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 1             (2)   The reporting requirements under this subsection may
 2      be submitted electronically to the department.
 3   § 8598.    Cumulative report.
 4      Not later than December 31, 2029, for the purpose of
 5   reviewing the eligibility criteria and effectiveness of the tax
 6   freeze under this subchapter, the department shall submit to the
 7   General Assembly a cumulative report with the information
 8   contained in the annual reports under section 8597(a)(4)
 9   (relating to program performance and annual report), along with
10   any other information that the department deems relevant.
11      Section 2.     The provisions of this act are severable. If any
12   provision of this act or its application to any person or
13   circumstance is held invalid, the invalidity shall not affect
14   other provisions or applications of this act which can be given
15   effect without the invalid provision or application.
16      Section 3.     This act shall take effect immediately.




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