Act 1
Homeowner Tax Relief Act
Following is a brief list of
questions and answers to help you understand Act 1, why you are receiving the
enclosed Homestead/Farmstead Application and why it is important for you to complete
and return it.
Q. What is
Act 1?
A. Act 1, enacted in June 2006, repeals Act 72
and sets out several options that allow a school district to reduce its
dependency on real estate taxes to fund operations. A participating school
district will receive a portion of state revenues generated by licensed slot
machine operations. To qualify for the “slot money”, the district must
increase its local tax on earned income (or broaden its income tax base to
include other sources of income). Funds
received by school districts from “slot money” and increased local income tax
must be used to reduce the property taxes of qualifying property owners.
Q. How do I become a
“qualifying” property owner?
A. To become a
qualifying property owner you must first complete the enclosed application
and return it to the address on the envelope provided. The York County Assessment Office will
determine if the property qualifies for tax relief. Qualification is not a school
district decision.
Q. What is a “homestead”?
A. A homestead
is your primary residence. You may claim only one residence as your primary
home. Your answers to the application
questions will help the County Assessment Office determine if the building is a
“primary residence.”
Q. What is a “farmstead”?
A. A farmstead
is a primary residence on a farm, including the value of buildings and
structures used in commercial agricultural production.
Q. How much
might my taxes be reduced?
A. The final
amount of the real estate tax reduction is unknown and will be different for
each school district. Available funds
will be determined by the State and will be based on the amount of gaming
monies collected and by the amount generated by the increase in local
income tax collections.
Q. When will I see a reduction in my real
estate taxes?
A. That is
unclear but we do not expect to receive money from the State before 2008, with
tax relief for participating districts to be effective with the 2007-08 school
year (July 1, 2008 property tax bill). Still,
you should apply for tax relief now to avoid missing out on tax relief if funds
are available in 2007.
Q. I completed a similar application in 2005; do I need to complete a new application?
A. If your
application was rejected or if you failed to submit an application at that
time, you need to Fill Out and Submit a new application. If your application
was approved, you do not need to reapply.
Q. Why should I complete and return the
Homestead Application?
A. This is the
only way you will be eligible to participate and receive a reduction in your
school district real estate taxes. If
you do not complete the application you will not receive a reduced assessment.
Q. Will this reduced assessment also apply to my local municipality and/or county real estate tax.
A. No. The provisions of the Act only apply to
school district real estate taxes.
Q. What is the deadline for filing my Application for Homestead and Farmstead Exclusions?
A. March 1,
2007.
It is very important that
you complete and return the enclosed application as soon as possible. This is a required step in qualifying for
tax relief under Act 1.