The Homeowner Tax Relief Act of 2006
Homestead Application Form
Centre County Application for Homestead and Farmstead Exclusions [PDF]
NOTE: The deadline for application is March 1, 2010
Introduction
The Taxpayer Relief Act special session Act 1 of 2006 was signed into law by Governor Rendell on June 27, 2006. Act 1 requires each school district to appoint a tax study commission to make a non binding recommendation regarding additional earned income tax or a personal income tax to fund homestead/ farmstead exclusions. As part of the 2007 primary election, a referendum question was approved to levy, assess and collect on earned income tax or a personal income tax to fund the homestead/farmstead exclusions. Act 1 also provides school districts the means to lower property taxes by using the funding that may be provided using gaming revenues.
Timeline for Applications
The Taxpayer Relief Act Homestead/Farmstead applications will be mailed to all non approved eligible property owners by December 31, 2009. The deadline for property owners to apply with the County Assessment Office is March 1, 2010. There is no application fee for filing. All applicants will be notified by the County Assessment Office within 30 days upon receipt of their application regarding the status of their application. An owner aggrieved by the decision of the Chief Assessor may request an appeal to the board for a review of the decision in a manner consistent with the provisions for the appeals under the 4th through 8th class counties assessment law. In subsequent years every eligible property that has not responded will receive an application at least 60 days prior to the March 1st deadline.
Some frequently asked questions
What is a "homestead property?"
A homestead property is a dwelling primarily used by an owner as his or her permanent home. The owner may be living temporarily at another location, but he or she must have the intention of returning to that home. No one can have more than one permanent home at any one time. Homestead properties do not include rental units, vacation homes, camps or other homes in which the owner does not live on a permanent basis. In general, it is the address where the owner registered to vote and has registered his or her driver's license. The homestead property includes the land under the dwelling, as long as it is owned by the same person who owns the dwelling. The formal definition of property is the same as that used for determining residence status for the earned income tax.
What is a "farmstead property?"
A farmstead property includes all buildings and structures that are used primarily for agricultural purposes (such as housing animals or storing supplies, production or machinery) on a farm of ten contiguous acres or more in size. The farmstead must be the permanent residence of at least one owner, as defined under the homestead definition. The farmstead exclusion would be applied to buildings and structures that are not already exempt from real property taxation under other laws. The requirement that an owner live on the farm means that farms owned by absentee owners will not be eligible for the farmstead exclusion.
Will every property owner receive tax relief?
This tax reform legislation only applies to residential property owners. Pennsylvanians in 66 counties will receive property tax relief through homestead and farmstead exclusions.
How do I apply for a homestead/farmstead exclusion?
To receive a homestead or farmstead exclusion, a Pennsylvania resident must submit an application to the county assessor prior to March 1. School districts are required to send an application to all non approved, eligible property owners 60 days prior to the March 1 application deadline.
I have applied for a homestead/farmstead exclusion previously and was approved,
do I need to apply again?
No, your application and approval have been maintained by the Centre County Assessment office. If you are not sure you have been approved previously you may call 355-6721 to receive information.
Do I qualify for an exclusion if the property is not deeded in my name?
A homestead/farmstead property is a dwelling primarily used by an owner as his or her permanent home, so it's important to identify the definition of owner under the Act:
"Owner." Includes any of the following:
- A joint tenant or tenant in common.
- A person who is purchasing real property under a contract.
- A partial owner.
- A person who owns real property as a result of being a beneficiary of a
- will or trust or as a result of intestate succession.
- A person who owns or is purchasing a dwelling on leased land.
- A person holding a life lease in real property previously sold or transferred
- to another.
- A person in possession under a life estate.
- A grantor who has placed the real property in a revocable trust.
- A member of a cooperative as defined in 68 Pa. C.S. & 4103 (relating to
- definitions)
- A member of a condominium as defined in 68 Pa. C.S. & 3103 (relating
- to definitions)
- A partner of a family farm partnership or a shareholder of a family farm
- corporation as the terms are defined in section 1101-C of the act of
- March 4, 1971 (P.L.6, No. 2), known as the Tax Reform Code of 1971.
Does the homestead/farmstead exclusion have any effect on clean & green status?
No. Farmers can be eligible for a farmstead exclusion that provides tax relief to buildings used for agricultural purposes, and a homestead exclusion which provides tax relief to the primary residence. The exclusion would be applied to the clean and green assessed value.
I own my home, but not the parcel of land beneath my home. Should I apply?
Yes, the exclusion would be applied to the assessed value of the home regardless of who owns the parcel of land beneath.
More Information
For more information visit the State website The Tax Relief Act of 2006.
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