Property Tax Relief for Seniors over 70 in Pennsylvania

The following letter was sent to the Commissioners as well as county and state representatives by Lisa Hackett, daughter of a senior citizen living in Springfield. I am reprinting it here, with her permission.

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Dear Gentlemen & Ladies:

With all due respect, I am writing to each of you out of sheer exasperation with the lack of Property Tax Relief programs available to seniors over 70 in the State of PA. I am writing to each of you to request that you each advocate changing this immediately.

Each of your offices when contacted recommended the PA Property tax rebate program. While I appreciate your respective offices attempts to be helpful within the scope of what currently exists in PA for seniors over 70, I am afraid that the Rebate Program is ineffective and insufficient as it currently stands. The program seriously falls short of what is desperately needed.

Seniors in PA who are over 70 living solely on Social Security cannot afford to pay their property taxes in full to be able to receive the rebate. This flaw in the program renders the program useless.

Seniors in PA who are over 70 living solely on Social Security should not even have to apply for the rebate. It should be automatically being given as a discount. The application process is superfluous. Surely, the social security records are freely available and a quick database search can pull the names of those over 70 on Social Security alone and the "rebate" could automatically be given as an automatic discount instead of a rebate. Imagine living on 10K or less per year.... how could you possibly pay 2K or 3K in property taxes in full to be eligible for this discount? Do the math. Many seniors over 70 live on Social Security alone living on roughly $700 per month. Paying property taxes from this amount is impossibility. This means that the property taxes fall into arrears and continue to compound interest and penalties further increasing debt that they cannot pay back.

I understand that a modification to the program recently increased the limit to $35K to be eligible for a rebate. I am not concerned one bit about anyone earning $35K or anyone earning over $15K. I am concerned with those living on $8k and trying to squeak by and stay in their homes till death. Surely a cheaper option for the State than state run nursing/assisted living homes.

The two biggest expenses for Seniors in PA are their property taxes and their heating oil. These two programs in PA are the least effective. LiHeap only provides for a one time flat payment of roughly $300 dollars. Even with conserving and minimal heat use in the winter the bills range in the $400 per month range. The $300 supplement does not even begin to put a dent in what's needed for a Senior to survive. This is a separate issue from my primary concern but one worth having on your radar.

Eliminating the need for a senior over 70 in PA who lives solely on Social Security and earns less than 10K per year would eliminate loads of unnecessary paperwork and the need to re-apply year after year. This is a colossal no brainier.

I understand that this modification would require changes in the law as it currently stands. I am asking you all to make this necessary and somewhat simple change.

In addition, I am requesting help from each of you to advocate for programs that exists for seniors in other states such as:

1. Property Tax Deferment: whereby taxes can be deferred until the time of death and the house can be sold
2. Property Tax Freeze: whereby the assessment of taxes does not increase year on year it is frozen once a senior turns 70.
3. Property Tax Discounts for seniors: in lieu of the useless Rebate program.
4. Property Tax Arrears: waive all penalties and interest for those over 70 on Social Security alone. If they can't afford their taxes they certainly cannot afford the penalties and interest. Duh!

These items are colossal no brainers. You don't need to go to Harvard Business School or to MIT to sort out that these are easy fixes that really need to be done immediately. If the US government can bail out Wall Street in less than B weeks than surely helping its senior's should be able to happen in equal or less time.

Lastly, the Montgomery County, PA property taxes are collected by an agency called XSPAND in Whippany, New Jersey. The following quote is posted on the XSPAND website: "Xspand has provided over $4 billion in revenue to governments through the purchase of real estate tax liens". Given the economy and Barack Obama's recent aid to help prevent foreclosures etc. Is this really something that the agency collecting the taxes should be bragging about and using as marketing messages on their website? It is inconsistent with the current administrations policies.

Will you agree to help me advocate for change for Seniors? I am available and interested in coming to Harrisburg or Washington D.C. or to anyone of your local offices to meet to discuss in further detail, as I've become quite the expert on all of the agencies and not for profits supposedly available to help seniors in PA. Please let me know if I can schedule 20 minutes with each of you and when.

I can present very specific examples to you of why the PA Rent/Property Tax Rebate Program is not serving those most in need of aid.

Thank you in advance for your time and consideration. I look forward to discussing this matter with you further.

Respectfully Submitted,
Lisa Hackett
Concerned Daughter of a 72 year old Montgomery County, PA resident
301 S. 19th Street Apt. 4F
Phila, PA 19103
201-572-4206
lisahackett1@mac.com