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Ordinance of the County of Allegheny establishing a procedure for deferral of a portion of senior citizens' property tax bills.
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WHEREAS, the Real Estate Tax Deferment Program Act, 53 P.S. §§8571 - 8578, permits political subdivisions within the Commonwealth to create a program to allow citizens to defer a portion of their property taxes; and
WHEREAS, the provisions of the Real Estate Tax Deferment Program Act are applicable to all political subdivisions, including home rule municipalities; and
WHEREAS, Allegheny County Council desires to provide property tax relief to the citizens of the County to the extent allowable by law; and
WHEREAS, a Real Estate Tax Deferment Program has not yet been established in Allegheny County;
The Council of the County of Allegheny hereby enacts as follows:
SECTION 1. 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:
A. "Base payment." The amount of property tax paid by an applicant in the base year.
B. "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.
C. "Claimant." A person whose household income does not exceed the limit provided for in Section 2 of this Ordinance (relating to income eligibility).
D. "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.
E. "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.
SECTION 2. 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.
SECTION 3. Tax Deferral.
A. 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. 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.
SECTION 4. Application Procedure.
A. Any person eligible for a tax deferral under this subchapter may apply for such deferral annually to the Chief Assessment Officer, through the Office of Property Assessments. In the initial year of application, the following information shall be provided in the manner required by the Chief Assessment Officer:
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; and
5. Proof of income eligibility under Section 2 of this Ordinance (relating to income eligibility).
B. 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 Ordinance.
SECTION 5. Contents of Application.
Any application for a tax deferral distributed to persons shall contain the following:
A. A statement that the tax deferral granted under this subchapter is provided in exchange for a lien against the homestead of the applicant; and
B. 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.
SECTION 6. Attachment and Satisfaction of Liens.
A. 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) of this Section.
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:
a. prior to the conveyance of the homestead to any third party; or
b. 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 Ordinance.
SECTION 7.
This Ordinance shall become effective as of December 31, 2005.
SECTION 8.
If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.
SECTION 9.
Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.