[Adopted 11-17-2022 by Ord. No. 1052[1]]
[1]
Editor's Note: This ordinance was originally adopted as Art.
VII but was renumbered to maintain the organization of the Code.
All terms defined in the Homestead Property Exclusion Program
Act, 53 Pa.C.S.A. § 8581 et seq., shall have the meanings
set forth therein. The following terms shall have the meanings set
forth herein:
The chief assessor of Montgomery County, Pennsylvania.
The Montgomery County Board of Assessment Appeals.
The Borough of Narberth, Montgomery County Pennsylvania.
The ratio of assessed value to current market value used
generally in the Montgomery County as last determined by the State
Tax Equalization Board under the State Tax Equalization Board Law.[1]
The ratio of assessed value to market value established by
the board of county commissioners and uniformly applied in determining
assessed value in any year.
All buildings and structures on a farm not less than 10 contiguous
acres in area, not otherwise exempt from real property taxation or
qualified for any other abatement or exclusion pursuant to any other
law, that are used primarily to produce or store any farm product
produced on the farm for purposes of commercial agricultural production,
to house or confine any animal raised or maintained on the farm for
the purpose of commercial agricultural production, to store any agricultural
supply to be used on the farm in commercial agricultural production
or to store any machinery or equipment used on the farm in commercial
agricultural production. This term shall only apply to farms used
as the domicile of an owner.
A farmstead for which an application has been submitted and
approved under Section 8584 of the Homestead Property Exclusion Program
Act.[2]
A dwelling, including the parcel of land on which the dwelling
is located and the other improvements located on the parcel for which
any of the following apply:
The dwelling is primarily used as the domicile of an owner who
is a natural person. The homestead for real property qualifying under
this article shall not include the land on which the dwelling is located
if the land is owned by a person other than the person who owns the
dwelling.
The dwelling is a unit in a condominium as the term is defined
in Section 3103 of Title 68 of the Pennsylvania Consolidated Statutes
and the unit is primarily used as the domicile of a natural person
who is an owner of the unit; or the dwelling is a unit in a cooperative
as the term is defined in Section 4103 of Title 68 of the Pennsylvania
Consolidated Statutes and the unit is primarily used as the domicile
of a natural person who is an owner of the unit. The homestead for
a unit in a condominium or a cooperative shall be limited to the assessed
value of the unit, which shall be determined in a manner consistent
with the assessment of real property taxes on those units under Title
68 of the Pennsylvania Consolidated Statutes or as otherwise provided
by law. If the unit is not separately assessed for real property taxes,
the homestead shall be a pro rata share of the real property.
The dwelling does not qualify under the criteria listed above
and a portion of the dwelling is used as the domicile of an owner
who is a natural person. The homestead for real property qualifying
under this subsection shall be the portion of the real property that
is equal to the portion of the dwelling that is used as the domicile
of an owner.
The value which is the middle point in the sequential distribution
of assessed values, above and below which exist an equal number of
assessed values.
A.
The Borough hereby establishes a homestead and farmstead exclusion
for property tax relief for qualifying real properties located within
the Borough. The dollar amount to be excluded from the assessed value
of each homestead and farmstead property for the next fiscal year
shall be established by resolution of Borough Council, which may thereafter
be amended for subsequent fiscal years.
B.
The Borough shall notify the Assessor by first-class mail of its
decision to provide a homestead and farmstead exclusion. Upon such
notice, the Assessor shall provide the Borough with a certified report
listing information regarding homestead and farmstead properties in
the Borough as determined pursuant to applications filed with the
Assessor in connection with this article. Only homestead or farmstead
properties identified in the certified report of the Assessor obtained
in any year shall be eligible to receive the exclusion for the next
fiscal year.
A.
New construction. A homestead exclusion for a dwelling constructed
during the taxable year and used as homestead property shall be prorated
in a manner consistent with the assessment of real property taxes
on that dwelling.
B.
Reassessment. After a revision of assessments by means of revaluing
all properties, the Borough shall adjust the amount of the exclusion
for homestead property as follows:
(1)
If the assessment base is revised by applying a change in the established
predetermined ratio, the exclusion for homestead property shall be
adjusted by the percentage change between the existing predetermined
ratio and the newly established predetermined ratio; or
(2)
If the Assessor performs a revision of assessments by revaluing all
properties and applying an established predetermined ratio, the exclusion
for a homestead property shall be adjusted by dividing the exclusion
for the homestead property for the year preceding the revision of
assessments by the common level ratio and multiplying the quotient
of that calculation by the newly established predetermined ratio.
A.
Application; determinations. The owner or owners of real property
seeking to have property approved as homestead property or farmstead
property shall file an application with the Assessor on the form developed
by the Assessor. Determinations with respect to the qualification
of all or a part of a parcel of real property as homestead property
or farmstead property shall be made by the Assessor.
B.
Filing deadlines; renewal of application. Applications shall be filed
with the Assessor not later than March 1 of each year or as otherwise
established by the Assessor. A schedule for review or reapplication
for real property previously approved as homestead property or farmstead
property shall be as established by the Montgomery County Board of
Commissioners.
C.
Notice of applications and deadlines. The Assessor shall provide
sufficient notice to the public regarding the availability of applications
to designate real property as homestead property or farmstead property
and all filing deadlines.
D.
Denial of application. The Assessor shall provide to each property
owner whose application for approval as a homestead property or farmstead
property is being denied in whole or in part a written notice of denial
by first-class mail. The notice shall include all reasons for denial.
E.
Appeals of Assessor's decision. An owner aggrieved by the decision of the Assessor may appeal to the Board for a review of the decision in a manner consistent with the provisions for appeal of assessments under the applicable assessment law. Appeals under this subsection shall be limited to whether the application meets the requirements of Subsections A and B above, or whether the parcel for which the appeal is made meets the definition of "farmstead property" or "homestead property."
F.
Other appeals. Appeals regarding the assessed value of real property under the applicable assessment law shall be based on the assessed value of the real property before application of the exclusions for homestead property or farmstead property. The issue of qualification as homestead property or farmstead property shall not be raised in an appeal except as provided in Subsection E.
G.
False or fraudulent applications. The Assessor may select, randomly or otherwise, applications filed under Subsection A above to review for false or fraudulent information.
H.
I.
Reports. At the same time as the Assessor certifies the tax duplicate,
the Assessor shall provide to the governing body of the county and
each political subdivision within the county upon request and at no
charge a certified report listing at least all of the following information:
(1)
The parcel number of each parcel which is approved, in whole or in
part, as homestead property.
(2)
The assessed value of each parcel which is approved, in whole or
in part, as homestead property.
(3)
The portion of the assessed value of each parcel listed under Subsection I(2) which is approved as homestead property.
(5)
The parcel number of each parcel which is approved, in whole or in
part, as farmstead property.
(6)
The assessed value of each parcel which is approved, in whole or
in part, as farmstead property.
J.
Notification on change of use.
(1)
A property owner whose property is approved as 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 above.
(2)
The recorder of deeds shall periodically provide to the Assessor
a list of real property conveyance documents which have been presented
for recording. The list shall include the name of the grantor and
the address of the property. For the purposes of this subsection,
the word "document" shall have the meaning ascribed to it in Section
1101-C of the Tax Reform Code.[2]
[2]
Editor's Note: See 72 P.S. § 8101-C.
A.
Limit on exclusion. In accordance with the limits established on
the exclusion for homestead property in Article VIII of the Constitution
of Pennsylvania, the Borough shall not authorize an exclusion for
homestead property in excess of the amount which is 1/2 of the median
assessed value of homestead property in the Borough. The median assessed
value of homestead property shall be determined by the information
provided to the Borough under § 459-38I above.
B.
Prohibition. The Borough shall not increase the millage rate of its
tax on real property to pay for homestead or farmstead exclusions.
