GENERAL PROVISIONS
§ 401.1. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Claimant—The term claimant shall be defined in accordance with the following:(i) A claimant means an individual who has filed a claim for a rebate under the Senior Citizens Property Tax or Rent Rebate Act and is one of the following:
(A) Sixty-five years of age or over as of December 31 of the calendar year for which a property tax rebate or a rent rebate in lieu of property taxes is claimed.
(B) Whose spouse, if a member of the household, was 65 years of age or over as of December 31 of the calendar year for which a property tax rebate or a rent rebate in lieu of property taxes is claimed.
(C) Was a widow, or widower after January 1, 1972 only, and was 50 years of age or over as of December 31 of the calendar year for which a property tax rebate or a rent rebate in lieu of property taxes is claimed; ‘‘widow’’ or ‘‘widower’’ shall mean the surviving wife, or the surviving husband, as the case may be, of a deceased individual and who has not remarried.
(D) Was a permanently disabled person during some part of the calendar year for which a property tax rebate or a rent rebate in lieu of property taxes is claimed. The term ‘‘permanently disabled person’’ shall mean a person who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to continue indefinitely.
(ii) The phrase ‘‘as of December 31 of the calendar year for which a property tax rebate or a rent rebate in lieu of property taxes is claimed’’ means at any time during that calendar year.
(iii) A claimant shall always own and occupy or rent and occupy the homestead on which a claim for a property tax rebate or a rent rebate in lieu of property taxes is filed.
(iv) A claim for a property tax rebate or a rent rebate in lieu of property taxes may be filed by the personal representative of a decedent’s estate if, and only if, the decedent lived during some part of the year next succeeding the calendar year for which a rebate is claimed. A surviving spouse will be eligible for a property tax rebate for those months the surviving spouse and the deceased spouse occupied the homestead and such homestead was the separate property of the decedent.
Homestead—The term homestead shall be defined in accordance with the following:(i) A dwelling whether owned or rented and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, occupied by the claimant.
(ii) Premises occupied by reason of stock ownership or lease in a cooperative housing corporation. A claimant who owns stock in a cooperative housing corporation or association is a renter and not an owner, as the claimant does not own title to real property. That part of the land attributable to a tenant in a cooperative housing corporation shall be determined by the proportion that the value of the tenant’s stock bears to the total outstanding stock of the corporation.
(iii) Mobile homes and other similar living accommodations whether owned or rented if assessed as realty for local property tax purposes and the land, whether owned or rented, upon which they are situated.
Example. Claimant H and his wife W own a mobile home on which they are required to pay $200 a year for real property taxes. The couple rent the land on which the mobile home is located from Y Corporation for $400 a year. Claimant H may file a claim for a property tax rebate up to $200 for the real property taxes paid on the mobile home. Claimant H is also eligible for a rent rebate in lieu of property taxes up to $80 (20% times $400). However, the maximum amount of rebate payable to any one household for one year is $200.
(iv) The residential part of a multipurpose building together with that part of the land attributable to the premises occupied by the claimant, whether owned or rented.
(v) That part of a multidwelling building which constitutes the claimant’s residence together with that part of the land attributable to the premises occupied by the claimant, whether owned or rented.
(vi) Premises occupied by reason of the claimant’s ownership or rental of a dwelling located on land owned by a nonprofit incorporated association, of which the claimant is a member, if the claimant is required to pay a pro rata share of the property taxes levied against the association’s land.
(vii) Premises occupied by a claimant if he is required by law to pay a property tax by reason of his ownership or rental, including a possessory interest, in the dwelling, the land, or both.
(viii) For 1971 and 1972, land which is reasonably necessary for use of the dwelling as a home must not exceed 2 acres.
Household income—The term household income shall be defined in accordance with the following:(i) As applied only to those claims filed for 1971 and 1972 property tax rebates or rent rebates in lieu of property taxes, houshold income means all income, as described in § § 401.11 and 401.12 (relating to income limitations; and losses) and the definition of income as set forth in this section, received by the claimant and all other persons while residing in the homestead during a calendar year in which real property taxes or rent are due and payable, but shall not include the income of residents who are not related to the claimant and who pay reasonable, fixed rents. The income of a member of the household shall be included in household income even if the claimant did not receive any benefit from the income.
Example 1. Members of the household are claimant H and his wife W. Claimant H received a pension of $1,200 during the calendar year. W received $800 in Social Security benefits during the calendar year. Household income is $2,000.
Example 2. Members of the household during the entire year are claimant H and his wife W. Claimant’s son S was a member of the household during the first 2 months of the year. R, not related to claimant, rents a room in claimant’s home. Claimant H had an income of $3,500, including R’s rental payments. W had no income for the calendar year. S had income of $700 while he was a member of the household. R had income of $9,000. The household income is $4,200 ($3,500 + $700).
(ii) Effective beginning with those claims filed for 1973 property tax rebates or rent rebates in lieu of property taxes and all claims filed thereafter, household income means the total annual income, as described in § § 401.11 and 401.12 and the definition of ‘‘income’’ as set forth in this section, received by the claimant and all income received by the claimant’s spouse while he resided in the homestead during a calendar year in which real property taxes or rent are due and payable. Household income does not include the income of claimant’s children or others.
Example 1. Members of the household are claimant H, his wife W and their son S. Claimant H received a pension of $1,200 during the calendar year. W received $800 in Social Security benefits during the calendar year. S received an income of $6,000 during the calendar year. The total household income for the calendar year is $2,000 ($1,200 + $800 = $2,000).
Example 2. Husband H resides in the homestead, wife W was confined to a nursing home for the last 8 months of the calendar year for which rebates are being claimed. Both H and W are qualified claimants and may file for rebates. H as a property owner and W as a renter for 8 months. H need not include the income of W received while she was in the nursing home, but must include all W’s income received during the 4 months she resided in the homestead.
Example 3. Claimant A and her sister B both are over 65 years of age and reside together in their homestead. Either A or B, but not both, may file for a rebate and need only include her income as the total household income for 1973.
Income—Income from whatever source derived, including but not limited to the following:(i) Salaries.
(ii) Wages.
(iii) Bonuses.
(iv) Commissions.
(v) Income from self-employment or partnership income.
(vi) Alimony.
(vii) Support money.
(viii) Cash public assistance and relief.
(ix) The gross amount of pensions or annuities including railroad retirement benefits.
(x) The gross amount of cash benefits received under the Federal Social Security Act, except Medicare benefits.
(xi) Benefits received under State unemployment insurance statutes.
(xii) Veteran’s disability payments.
(xiii) Interest, including interest received from the Federal government, State government, or an instrumentality or political subdivision thereof.
(xiv) Realized capital gains except as provided in § 401.11.
(xv) Rental income.
(xvi) Workmen’s compensation and the gross amount of loss of time insurance benefits, except those benefits granted under section 306(c) of The Pennsylvania Workmen’s Compensation Act (77 P. S. § 513).
(xvii) Life insurance benefits and proceeds, except as provided in § 401.11.
(xviii) Gifts or bequests of cash or property, other than transfers by gift between members of a household, in excess of a total value of $300.
(xix) Money or the fair market value of a prize such as an automobile or a trip won in a lottery, a contest or by a form of gambling.
(xx) Royalties.
(xxi) Dividends.
Real property taxes—The term real property taxes shall be defined in accordance with the following:(i) All taxes on a homestead which are due and payable during the calendar year for which a property tax rebate is claimed. Real property taxes are considered to be ‘‘due and payable’’ at the earliest moment, as indicated on the tax bill, that the real property taxes may be paid to the taxing jurisdiction. Taxpayers may receive credit for all those real property taxes which are due and payable during a calendar year as long as such taxes are actually paid before the claim for a property tax rebate is filed. However, a rebate may not be granted on an amount of real property taxes greater than the amount of real property taxes actually paid.
Example 1. Claimant C receives his borough property tax bill on July 1, 1971, and his school district property tax bill on September 1, 1971. Both property tax bills may be paid immediately but must be paid before the end of calendar year 1971 in order to avoid any interest or penalty charges. Claimant C may receive credit for both these property tax bills, exclusive of all interest or penalty charges, as long as such bills were actually paid prior to the filing of his property tax rebate claim in 1972.
Example 2. Claimant A receives both his borough and school district property tax bills during calendar year 1971. Both bills may be paid with a 2% discount by September 1, 1971. However, the taxpayer may pay without discount in four equal installments, the last of which is not due until March 30, 1972. As these property taxes were due and payable during 1971, if the claimant is to receive the 2% discount, claimant A may receive credit for these property taxes as long as such taxes were paid prior to the time when he filed his claim for a property tax rebate in 1972, even if such bills were not paid until March 30, 1972. However, any interest or penalty charges shall be deducted.
(ii) The term real property tax does not include any of the following items:
(A) Municipal assessments.
(B) Interest.
(C) Delinquent charges or penalties.
(D) Per capita charges of any kind.
(iii) If the items set forth in subparagraph (ii) of this definition are so included, the property tax bills shall be adjusted by eliminating these items.
(iv) The amount of a discount which may be lost through failure to pay real property taxes early is not considered to be interest, a delinquent charge, or a penalty; therefore, a taxpayer may receive full credit for real property taxes which have been paid on time even though he did not pay his taxes early enough to receive a discount.
Rent rebate in lieu of property taxes and rent paid—The term rent rebate in lieu of property taxes and rent paid shall be defined in accordance with the following:(i) An amount equal to 20% of the gross amount actually paid to a landlord in cash or its equivalent in any calendar year in connection with the occupancy of a homestead by a claimant, irrespective of whether such amount constitutes payment solely for the right of occupancy or otherwise.
(ii) The term rent paid is that amount paid by or on behalf of a tenant to a landlord in connection with the right of occupancy of a homestead. Only those charges which are reasonably necessary for use of the dwelling as a home may be included as rent paid. Thus, any charges for medical services rendered or food provided by the landlord may not be included. Utility charges may be included as rent paid if they are included in the amount paid to a landlord in connection with the right of occupancy.
Example. For one year, claimant A rented of a duplex owned by landlord L. As rent, A paid $100 per month to L which included payment for A’s water and electricity. In addition, A paid $10 per month for a telephone to the Bell Telephone Company. A also paid to L of each month’s gas bill. Claimant A may only claim a rent rebate in lieu of property taxes on $1200 (12 x $100). As both the telephone and the gas charges were paid separately from the rent, they may not be included as rent paid.
Source The provisions of this § 401.1 amended July 19, 1985, effective July 20, 1985, and will apply retrospectively to January 1, 1985, 15 Pa.B. 2653. Immediately preceeding text appears at serial pages (36171) to (36176).
Cross References This section cited in 61 Pa. Code § 401.71 (relating to table of rebate).
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