June 20, 2001

Bard Introduces
Older Pennsylvanians Homestead Exclusion Act

 

HARRISBURG—A leader in the state government effort to provide local tax relief, Montgomery County lawmaker Rep. Ellen M. Bard (R-153) today introduced historic legislation empowering school districts to eliminate part of the property tax burden they place on low-income senior citizens.

Specifically, Bard’s Older Pennsylvanians Homestead Exclusion Act allows any school district to exclude from property taxation up to 25 percent of the assessed value of the homestead of any citizen who is eligible for Pennsylvania’s Property Tax/Rent Rebate program.

Participation in the Property Tax Rent/Rebate Program is open to individuals whose total household income does not exceed $15,000 and who meet one of the following criteria: age 65 or older; widow and widowers age 50 or older; or permanently disabled persons 18 or older. Applicants can deduct 50 percent of Social Security or railroad retirement pension benefits when calculating total household income.

Those who apply for the Property Tax Rent/Rebate Program are eligible for a rebate of up to $500. Bard noted that the maximum rebate has not been increased since 1981.

A school district that decides to provide tax relief through Bard’s homestead exemption vehicle may also adopt a resolution to place the issue on the ballot for voter referendum.

"So many older residents on a fixed income are being chased from their homes by high property taxes – and in particular high school taxes," Bard said. "Offering property tax relief to those who need it most—those eligible for the Property Tax/Rent Rebate Program—is something we in the General Assembly can do now to address this very serious problem.

"A scenario where a large proportion of a household’s total income is consumed by property taxes is not uncommon in Pennsylvania. Taxpayers who have to endure such a situation have little left over to pay for medicine, heat, electricity and food."

Bard said one-quarter of the claimants processed in her Abington office last year paid 25 percent or more of their total household income in local property taxes; some even paid 40 to 50 percent of their income in property taxes.

"These older Pennsylvanians deserve to be able to stay in their homes," Bard added. "They have paid their share over the years. They need our help."

Statewide data show that about 18 percent of all those eligible under the Property Tax Rent/Rebate Program were so overburdened by taxes that they were eligible for the $500 maximum rebate.

"My legislation simply creates the opportunity for school districts to give needy older residents as much as a 25 percent property tax cut in addition to their property tax rebate," Bard said. "That relief would help the most needy older residents to continue to live in Abington Township."

"This legislation is sensible because it is not a mandate upon the schools; it gives them an option to provide tax relief."

Bard has also authored legislation that would:

• Double the maximum rebate awarded under the Property Tax/Rent Rebate Program.
• Exempt Pennsylvanians age 80 and over from local taxation.
• Require the state to boost its subsidies for growing school districts, which place inordinately higher property tax burdens on their residents.

In 1996, Bard was named Legislator of the Year by the Pennsylvania Tax Collectors’ Association. Despite being in only her fourth term in office, Bard has authored and shepherded through the political process 13 bills that have been signed into law.