HB 2727

                                                    PRINTER'S NO.   3809
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                     HOUSE BILL
                     No. 2727
                                             Session of
                                               2026
INTRODUCED BY MARCELL, HOGAN, LABS, M. JONES, KAZEEM, HAMM,
   M. MACKENZIE, GUENST, JAMES, KUZMA, STAATS, CIRESI, GROVE,
   DELOZIER, MENTZER, SMITH AND GREEN, AUGUST 4, 2026
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, AUGUST 4, 2026
                                 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:
8SUBCHAPTER G
9SENIOR 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.   Tax freeze performance and annual report.
18 8598.   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    "Tax freeze."    The prohibition on an increase of real
26 property tax by a political subdivision on an applicant under
27 this subchapter.
28 § 8593.    Authority.
29    A political subdivision shall have the power and authority to
30 grant annual tax freezes in the manner provided in this
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1 subchapter.
2 § 8594.    Income eligibility.
3    (a)    Tax freeze eligibility.--In the initial year following
4 the effective date of this subsection, an applicant shall be
5 eligible for a tax freeze under section 8595 (relating to tax
6 freeze) if:
7(1)   the applicant and the applicant's spouse have a
8    household income not exceeding $65,000 annually; or
9(2)   the applicant's and the applicant's spouse's real
10    property taxes exceed 10% of their household income.
11    (b)    Subsequent eligibility.--In each subsequent year, the
12 income eligibility amount under subsection (a) shall be adjusted
13 in accordance with the Consumer Price Index for All Urban
14 Consumers (CPI-U).
15 § 8595.    Tax freeze.
16    (a)    Amount frozen.--An applicant shall have real property
17 taxes frozen at the applicant's base year amount for as long as
18 the applicant remains eligible under this subchapter.
19    (b)    Tax application.--A tax freeze granted by a political
20 subdivision shall only apply to an applicant's primary
21 residence.
22    (c)    Change of residence.--If an applicant changes residences
23 within the political subdivision that grants a tax freeze under
24 this subchapter and the applicant is eligible under section 8594
25 (relating to income eligibility), the real property tax freeze
26 shall be transferred to the new property and frozen at the rate
27 at which the applicant purchases the residence.
28    (d)    Current rate.--The real property tax and the tax rate on
29 the residence shall become current on the sale or transfer of
30 the property for which the tax freeze is in effect.
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1 § 8596.    Application procedure.
2    (a)    Initial application.--A person eligible for a tax freeze
3 under section 8594 (relating to income eligibility) may apply
4 annually to a political subdivision for a tax freeze under
5 section 8595 (relating to tax freeze). In the initial year of
6 application, the applicant shall provide the following
7 information in addition to the application under subsection (b):
8(1)   A certification that the applicant or the
9    applicant's spouse are jointly the owners in fee simple of
10    the homestead upon which the real property taxes are imposed.
11(2)   Receipts showing timely payment of the immediately
12    preceding year's base payment of real property taxes.
13(3)   Proof of income eligibility under section 8594.
14(4)   Other information required by the political
15    subdivision for the purpose of complying with section 8597(c)
16    (relating to tax freeze performance and annual report).
17    (b)    Application form.--The department shall develop a
18 standardized application form for use by political subdivisions.
19 The application form shall be substantially similar to the
20 application form for property tax or rent rebate claims under
21 Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
22 No.1), known as the Taxpayer Relief Act. The department shall
23 transmit the application form to the Legislative Reference
24 Bureau for publication in the next available issue of the
25 Pennsylvania Bulletin and transmit the application to political
26 subdivisions upon request. The department may post the
27 application on a publicly accessible Internet website.
28    (c)    Subsequent years.--After a political subdivision
29 authorizes an applicant's initial application, the applicant
30 shall remain eligible for a tax freeze in subsequent years if
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1 the applicant annually refiles the application with the
2 political subdivision showing that the applicant continues to
3 meet the eligibility requirements of section 8594.
4    (d)    Death of eligible applicant.--If an eligible applicant
5 dies, the applicant's spouse, if applicable, shall be eligible
6 for the tax freeze established under section 8595 provided the
7 spouse is 60 years of age or older and meets the income
8 eligibility requirements established in section 8594.
9 § 8597.    Tax freeze performance and annual report.
10    (a)    Duties of department.--The department shall:
11(1)   Compile a list of political subdivisions that grant
12    a tax freeze.
13(2)   Compile the aggregate number of individuals granted
14    a tax freeze in each political subdivision that grants a tax
15    freeze.
16(3)   Calculate the difference between the total amount of
17    real property taxes payable by the individuals granted a tax
18    freeze and the total amount of real property taxes that would
19    have been payable by those individuals but for the tax
20    freeze.
21(4)   Publish an annual report with the information under
22    paragraphs (1), (2) and (3) and post the annual report on the
23    department's publicly accessible Internet website.
24    (b)    Costs.--The department shall collect the information
25 under subsection (a) in a manner that minimizes the costs and
26 administrative requirements on political subdivisions.
27    (c)    Duties of political subdivisions.--
28(1)   A political subdivision that has granted a tax
29    freeze shall notify the department in writing and assist the
30    department in compiling the 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.    Report.
4    The department shall submit a report with the information
5 under section 8597(a)(1), (2) and (3) (relating to tax freeze
6 performance and annual report) and any other relevant
7 information to the General Assembly before December 31, 2029,
8 for the purpose of reviewing the eligibility criteria and
9 effectiveness of the tax freeze under this subchapter.
10    Section 2.     This act shall take effect immediately.
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