HB 1328 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for veterans property tax rebate and rent rebate assistance; establishing the Veterans Property Tax Rebate and Rent Rebate Assistance Account; imposing penalties; and making a transfer.

PRINTER'S NO.   1528

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1328
                                                  Session of
                                                    2025

     INTRODUCED BY HILL-EVANS, HANBIDGE, PROBST, PIELLI, GUENST,
        MADDEN, KHAN, SANCHEZ, GIRAL, SOLOMON, NEILSON, CERRATO,
        CEPEDA-FREYTIZ, MALAGARI, D. WILLIAMS, STEELE, GREEN,
        DONAHUE, GALLAGHER AND CIRESI, APRIL 30, 2025

     REFERRED TO COMMITTEE ON FINANCE, APRIL 30, 2025


                                     AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," providing for veterans property tax rebate and
11      rent rebate assistance; establishing the Veterans Property
12      Tax Rebate and Rent Rebate Assistance Account; imposing
13      penalties; and making a transfer.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
17   the Tax Reform Code of 1971, is amended by adding an article to
18   read:
19                               ARTICLE XXIX-J
20                        VETERANS PROPERTY TAX REBATE
21                         AND RENT REBATE ASSISTANCE
22   Section 2901-J.    Scope of article.
 1      This article relates to veterans property tax rebate and rent
 2   rebate assistance.
 3   Section 2902-J.    Definitions.
 4      The following words and phrases when used in this article
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Account."     The Veterans Property Tax Rebate and Rent Rebate
 8   Assistance Account.
 9      "Board."     The Board of Finance and Revenue of the
10   Commonwealth.
11      "Claim."     A claim for a property tax rebate or rent rebate
12   under this article.
13      "Claimant."    An individual who is a veteran honorably
14   discharged from the armed forces of the United States, including
15   the National Guard, within the past three years and who files a
16   claim.
17      "DD214."     A United States Department of Defense Report of
18   Separation Form 214 or a similarly effective form issued by the
19   Department of Defense relating to separation from military
20   service.
21      "DD215."     A United States Department of Defense Incomplete
22   Awards, Decorations and Discharges Form 215 or similarly
23   effective form issued by the Department of Defense to correct
24   errors or make additions to a DD214 in order to ensure that a
25   veteran has accurate discharge documentation.
26      "Department."     The Department of Revenue of the Commonwealth.
27      "Homestead."    As follows:
28            (1)   A dwelling, whether owned or rented, and so much of
29      the land surrounding it as is reasonably necessary for the
30      use of the dwelling as a home, occupied by a claimant.

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 1          (2)   The term includes:
 2                (i)    Premises occupied by reason of ownership or
 3          lease in a cooperative housing corporation.
 4                (ii)    A mobile home that is assessed as realty for
 5          local property tax purposes and the land, if owned or
 6          rented by the claimant, upon which the mobile home is
 7          situated, and other similar living accommodations.
 8                (iii)    A part of a multidwelling or multipurpose
 9          building and a part of the land upon which it is built.
10                (iv)    Premises occupied by reason of a claimant's
11          ownership or rental of a dwelling located on land owned
12          by a nonprofit incorporated association of which the
13          claimant is a member, if the claimant is required to pay
14          a pro rata share of the property taxes levied against the
15          association's land.
16                (v)    Premises occupied by a claimant if the claimant
17          is required by law to pay a property tax by reason of the
18          claimant's ownership or rental, including a possessory
19          interest, in the dwelling, the land or both. Ownership
20          includes possession under a contract of sale, deed of
21          trust, life estate, joint tenancy or tenancy in common or
22          by reason of statutes of descent and distribution.
23      "Property tax rebate."     A rebate under this article for real
24   property taxes.
25      "Real property taxes."     All taxes on a homestead, exclusive
26   of municipal assessments, delinquent charges and interest, due
27   and payable during a calendar year.
28      "Rent in lieu of property taxes."     Rent due and payable
29   during a calendar year to a landlord in connection with the
30   occupancy of a homestead, irrespective of whether the amount

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 1   constitutes payment solely for the right of occupancy or
 2   otherwise.
 3      "Rent rebate."        A rebate under this article for rent in lieu
 4   of property taxes.
 5      "Secretary."        The Secretary of Revenue of the Commonwealth.
 6      "Veteran."        An individual who served in the armed forces of
 7   the United States, including the National Guard.
 8   Section 2903-J.        Establishment of program.
 9      The Veterans Property Tax Rebate and Rent Rebate Assistance
10   Program is established in the department and shall be
11   administered as provided in this article.
12   Section 2904-J.        Property tax rebate and rent rebate.
13      (a)   Schedule of rebates.--
14            (1)   As follows:
15                  (i)    The base amount of a claim for a property tax
16            rebate for real property taxes due and payable during a
17            calendar year shall be determined in accordance with the
18            following schedule:
19                                      Amount of Real Property Taxes
20             Household Income                 Allowed as Rebate
21            $       0 - $ 8,000                       $650
22                8,001 -    15,000                      500
23             15,001 -      18,000                      300
24             18,001 -      35,000                      250
25                  (ii)    The supplemental amount for a claimant with a
26            household income equal to or less than $30,000 and an
27            eligible claim for a property tax rebate for real
28            property taxes due and payable during a calendar year and
29            whose real property taxes exceed 15% of the claimant's
30            household income shall be equal to 50% of the base amount

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 1          determined under subparagraph (i). A claimant who is a
 2          resident of a city of the first class, a city of the
 3          second class A or a school district of the first class A
 4          shall be ineligible for the supplemental amount under
 5          this subparagraph.
 6          (2)   The amount of a claim for a rent rebate for rent due
 7    and payable during a calendar year shall be determined in
 8    accordance with the following:
 9                                         Amount of Rent in Lieu of
10                                                Property Taxes
11           Household Income                    Allowed as Rebate
12          $       0 - $ 8,000                          $650
13              8,001 -        15,000                     500
14           15,001 -          18,000                     300
15           18,001 -          35,000                     250
16    (b)   Limitations on claims.--
17          (1)   No claim during a calendar year shall be allowed if
18    the amount of the property tax rebate or rent rebate,
19    computed in accordance with this section, is less than $10.
20          (2)   During a calendar year, the maximum amount of the
21    property tax rebate or rent rebate shall not exceed the
22    lesser of:
23                (i)    the amount of a claim under subsection (a); or
24                (ii)    either of the following:
25                       (A)    the amount of real property taxes actually
26                paid; or
27                       (B)    twenty percent of the gross amount actually
28                paid in cash or its equivalent in any calendar year
29                regarding the rent in lieu of property taxes.
30          (3)   No claim shall be allowed if the claimant is a

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 1      tenant of an owner of real property exempt from real property
 2      taxes.
 3      (c)   Apportionment and public assistance.--
 4            (1)   If a claim relates to a homestead owned or rented
 5      and occupied for only a portion of a year or owned or rented
 6      in part by a person who does not meet the qualifications for
 7      a claimant, exclusive of an interest owned or leased by a
 8      claimant's spouse, the department shall apportion the real
 9      property taxes or rent in accordance with the period or
10      degree of ownership or leasehold or eligibility of the
11      claimant in determining the amount of rebate for which a
12      claimant is eligible.
13            (2)   A claimant who receives public assistance from the
14      Department of Human Services shall not be eligible for a rent
15      rebate during those months within which the claimant receives
16      public assistance.
17      (d)   Government subsidies.--Rent in lieu of property taxes
18   shall not include subsidies provided by or through a
19   governmental agency.
20   Section 2905-J.    Filing of claim.
21      (a)   General rule.--Except as otherwise provided in
22   subsection (b), a claim must be filed with the department on or
23   before June 30 of the year following the end of the calendar
24   year in which real property taxes or rent in lieu of property
25   taxes was due and payable.
26      (b)   Exception.--A claim filed after the June 30 deadline
27   until December 31 of the same calendar year shall be accepted by
28   the secretary if funds are available to pay the benefits to the
29   late filing claimant.
30      (c)   Payments.--No reimbursement on a claim shall be made

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 1   earlier than July 1 of the calendar year in which the claim was
 2   filed.
 3      (d)   Eligibility of claimants.--
 4            (1)   Only one claimant from a homestead each year shall
 5      be entitled to the property tax rebate or rent rebate.
 6            (2)   If two or more persons are able to meet the
 7      qualifications for a claimant, they may determine who the
 8      claimant shall be. If they are unable to determine who the
 9      claimant shall be, the department shall determine to whom the
10      property tax rebate or rent rebate is to be paid.
11   Section 2906-J.    Proof of claim.
12      (a)   Contents.--Each claim shall include:
13            (1)   A DD214 or DD215, issued within the last three
14      years.
15            (2)   The size and nature of the property claimed as a
16      homestead.
17            (3)   Rent receipts, tax receipt or other proof that the
18      real property taxes on the homestead have been paid or that
19      the rent in connection with the occupancy of a homestead has
20      been paid.
21            (4)   Other information as required by the department.
22      (b)   Direct payment of taxes or rent not required.--Rent or
23   real property taxes do not need to have been paid directly by
24   the claimant if the rent or real property taxes have been paid
25   on or before the filing of the claim.
26   Section 2907-J.    Incorrect claim.
27      If on audit of a claim the department finds the claim to have
28   been incorrectly determined, the department shall redetermine
29   the correct amount of the claim and shall notify the claimant of
30   the reason for the redetermination and the amount of the

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 1   corrected claim.
 2   Section 2908-J.    Funds for payment of claims.
 3      (a)   Establishment.--The Veterans Property Tax Rebate and
 4   Rent Rebate Assistance Account is established as a restricted
 5   account in the State Treasury. The account shall be for the
 6   purpose of funding property tax rebates and rent rebates under
 7   this article. The account shall earn interest, which shall be
 8   credited by the State Treasurer to the account.
 9      (b)   Transfer.--The sum of $40,000,000 is transferred from
10   the General Fund to the account.
11      (c)   Appropriation.--Money transferred to the account is
12   appropriated on a continuing basis to the Department of Revenue
13   for use in funding property tax rebates and rent rebates as
14   specified under this article.
15   Section 2909-J.    Rules and regulations and procedures generally.
16      (a)   Promulgation and administration.--
17            (1)   The secretary shall prescribe necessary rules and
18      regulations to carry out the provisions of this article, in
19      consultation with the Secretary of Community and Economic
20      Development.
21            (2)   The department shall receive all applications,
22      determine the eligibility of claimants, hear appeals,
23      disburse payments and make available suitable forms for the
24      filing of claims.
25      (b)   Report to General Assembly.--In addition to any rules
26   and regulations prescribed under subsection (a), the department
27   shall collect the following information and issue a report
28   including the information to the chairperson and minority
29   chairperson of the Appropriations Committee of the Senate and
30   the chairperson and minority chairperson of the Appropriations

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 1   Committee of the House of Representatives by September 30, 2026,
 2   and September 30 of each year thereafter:
 3            (1)   The total number of claims under this article made
 4      in the fiscal year in which the report is issued, categorized
 5      by school district and by county.
 6            (2)   The total amount of rebates under this article paid
 7      in the fiscal year in which the report is issued, categorized
 8      by school district and by county.
 9   Section 2910-J.     Fraudulent claims and conveyances to obtain
10                  benefits.
11      (a)   Civil penalty.--If a claim is excessive or otherwise
12   fraudulent, the claim shall be disallowed in full, and a penalty
13   of 25% of the amount claimed shall be imposed. The penalty and
14   the amount of the disallowed claim, if the claim has been paid,
15   shall bear interest at the rate of 1.5% per month from the date
16   of the claim until repaid.
17      (b)   Criminal penalty.--A claimant and any person who assists
18   in the preparation or filing of the claim described in
19   subsection (a) commits a misdemeanor of the third degree and,
20   upon conviction thereof, shall be sentenced to pay a fine not
21   exceeding $1,000 or to imprisonment not exceeding one year, or
22   both.
23      (c)   Disallowance for receipt of title.--A claim shall be
24   disallowed if the claimant received title to the homestead
25   primarily for the purpose of receiving a property tax rebate.
26   Section 2911-J.     Petition for redetermination.
27      (a)   Right to file.--If the department denies, corrects or
28   takes any other adverse action regarding a claim, the claimant
29   may, within 90 days after the date that the department mailed
30   written notice to the claimant of the adverse action, file with

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 1   the department a petition for redetermination on a form supplied
 2   by the department.
 3      (b)   Contents.--The petition under subsection (a) shall:
 4            (1)   State the grounds upon which the claimant alleges
 5      that the action is erroneous or unlawful, in whole or part.
 6            (2)   Contain an affidavit or affirmation that the facts
 7      contained in the petition are true and correct.
 8      (c)   Extension of time for filing.--An extension of time for
 9   filing the petition under subsection (a) may be allowed for
10   cause but may not exceed 120 days.
11      (d)   Hearings.--
12            (1)   Subject to subsection (e), the department shall hold
13      any necessary hearing on petitions under subsection (a).
14            (2)   The department shall provide the claimant notice of
15      any hearing on the claimant's petition under subsection (a).
16      Notice shall include the date, time and place of the hearing.
17      (e)   Time period for determination.--Within six months after
18   receiving a claimant's petition under subsection (a), the
19   department shall dispose of the matters raised in the petition
20   and shall mail notice to the claimant of the department's
21   determination.
22   Section 2912-J.    Review by board.
23      (a)   Right to review.--Within 90 days after the date of
24   official receipt by the claimant of notice mailed by the
25   department of its decision under section 2911-J, the claimant
26   who is adversely affected by the decision may by petition
27   request the board to review the action.
28      (b)   Effect of no decision from department.--
29            (1)   Failure of the department to officially notify the
30      claimant of a decision within the six-month period under

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 1      section 2911-J(e) shall act as a denial of the petition.
 2            (2)   A petition for review may be filed with the board
 3      within 120 days after written notice is officially received
 4      by the claimant that the department has failed to dispose of
 5      the petition within the six-month period.
 6      (c)   Contents of petition for redetermination.--A petition
 7   for review under this section shall state the reasons for review
 8   or shall incorporate by reference the petition for
 9   redetermination under section 2911-J. The petition shall be
10   supported by affidavit that the facts stated in the petition for
11   review are correct and true.
12      (d)   Decision.--
13            (1)   The board shall dispose of each petition for review
14      under this section within six months after the petition has
15      been received.
16            (2)   If the board fails to dispose of a petition for
17      review within six months, the action taken by the department
18      regarding the petition for redetermination shall be deemed
19      sustained.
20            (3)   The board may sustain the action taken by the
21      department on the petition for redetermination or may take
22      other action as the board deems necessary and consistent with
23      provisions of this article.
24      (e)   Notice.--Written notice of the action of the board on a
25   claimant's petition for review under this section shall be
26   mailed to the department and the claimant.
27   Section 2913-J.    Appeal.
28      A claimant aggrieved by a decision of the board may appeal
29   the decision of the board in the manner provided by law for
30   appeals from decisions of the board in tax cases.

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1      Section 2.   This act shall take effect July 1, 2025, or
2   immediately, whichever is later.




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