Homestead & Farmstead Exclusion
The Taxpayer Relief Act (Special Session Act 1 of 2006)
Pennsylvania will provide its third broad-based property tax relief in 2014-15 based on The Taxpayer Relief Act (Special Session Act 1 of 2006). According to the Pennsylvania Department of Education, Quakertown Community School District will receive a property tax reduction allocation of $2,080,155.42 from the total available state-funded local tax relief in 2014-15.
The $2,080,155.42 will be divided among all homestead and farmstead approved properties within the Quakertown Community School District.
A homestead eligible property must be a Pennsylvania's Permanent primary residence on which property taxes are paid.
A farmstead exclusion provides property tax relief to farmers. A farmstead applies to buildings used for agricultural purposes on a farm that is a least 10 contiguous acres. The farmstead must also be the primary residence of its owner. Farmers can be eligible for both a homestead exclusion and a farmstead exclusion.
To become homestead or farmstead approved a Pennsylvania resident must submit an application to the county assessor. Buck's County Board of Assessment handles the applications for Quakertown Community School District. The application deadline is March 1. Residents that acquire property in the school district after the March 1 deadline can apply but must wait until the following year to qualify for a homestead or farmstead exclusion.
The amount of property tax relief will vary from one school district to another throughout the state of Pennsylvania. The property tax relief formula was designed to send the most state resources to the communities with the greatest tax burden and least local wealth.
Quakertown Community School District Homestead and Farmstead approved properties will receive a reduction of $227.89, on their 2014-15 School Property Tax Bill dated July 1, 2014.
You will see the following box on the Taxpayer copy of your tax notice:
Assessed value less homestead reduction less farmstead reduction(if applicable) equals Taxable assessment/Tax Liability.
HOMESTEAD REDUCTION -
FARMSTEAD REDUCTION -
Properties where the reduction results in a zero Tax assessment/Tax liability will still receive their 2014-15 School District Property Tax Notice, however, there will be zeros where you would normally see the amount due. The tax notice showing the zero amounts due should be kept for your records as in any other year.
Under 53 Pa. C.S.A 8584(h), monetary and criminal penalties are imposed for filing a false application. In addition, 53 Pa. C.S.A. 8584(j)(1) provides: "(1) A property owner whose property is approved as a homestead property or farmstead property and which property no longer qualifies as homestead property or farmstead property shall notify the assessor within 45 days of the date the property no longer qualifies as homestead property or farmstead property. Failure to notify the assessor as required by this subsection shall be treated in the same manner as a false application under subsection (g)."
Link for Bucks County Act 1 Information: Property Tax Relief Bucks County: Instructions & Application for Homestead and Farmstead Exclusion for 2014 (Bucks County Board of Assessment sends out applications Dec/Jan each year for Quakertown Community School District)
If there is any type of deed change to the parcel the application must be resubmitted for approval.
Other Sources of Tax Relief
PA-1000 Property tax and Rent Rebate Program-benefits eligible Pennsylvanians age 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older. For more information www.revenue.state.pa.us