(1) Definitions. As used in this Section:

(a) Income means all income from whatever source derived, including but not limited to salaries, wages, bonuses, commissions, income from self- employment, alimony, support money, cash public assistance and relief, the net amount of any pensions or annuities including railroad retirement benefits, all benefits received under the Federal Social Security Act (except Medicare benefits), all benefits received under State employment insurance laws and veterans’ disability payments, all interest received from the Federal or any State government, or any instrumentality or political subdivision thereof, realized capital gains, net income from rentals, workmen’s compensation and the gross amount of loss of time insurance benefits, life insurance benefits and proceeds (except the first ten thousand dollars ($10,000) of the total of death benefit payment), and gifts of cash or property (other than transfers by gift between members of a household) in excess of a total value of five hundred dollars ($500), but shall not include surplus food or other relief in kind supplied by a governmental agency or property tax rebate.

(b) Household income for the calendar year 1981 and thereafter means all income received by the taxpayer and members of his or her household while residing in the homestead during the calendar year preceding the calendar year in which real property taxes are due and payable.

(c) Homestead means a dwelling used as a home, occupied by a taxpayer. A homestead shall also include mobile homes which are assessed as realty for local property tax purposes and the land upon which the mobile home is situated and other similar living accommodations, as well as a part of a multi-dwelling or multi-purpose building and a part of the land upon which it is built to the extent that the eligible taxpayer is chargeable by the City for property taxes. It shall also include premises occupied by an eligible taxpayer if he is required "by law" to pay a property tax by reason of his ownership or rental (including a possessory interest) in the dwelling, the land, or both; provided that the term "by law" shall not be deemed to include a contractual obligation between the eligible taxpayer and a person who would otherwise be responsible to the City for the payment of the tax. An owner includes a person in possession under contract of sale, deed of trust, life estate, joint tenancy or tenancy in common.

(d) Low income taxpayer means a taxpayer whose household income did not exceed the following limits:

(.1) For the calendar year 1981:

(.2) For each ensuing calendar year, each income limitation in subsection (.1) of subsection (d) shall be adjusted upward by a percentage equal to three quarters of the percentage increase in the cost of living index for the Philadelphia metropolitan area in the previous calendar year.

(e) Senior citizen means a taxpayer who is sixty-five years of age or over, or whose spouse, if a member of the household, is sixty-five years of age or over, during a calendar year in which real property taxes are due and payable.

(2) Authorization for Installment Payments; Waiver of Additions to Tax; Abatement of Interest and Penalties.^[185]

(a) Installment payment agreements with low income taxpayers are authorized for amounts due on current real estate tax liabilities on the homesteads of low income taxpayers for a term not to extend beyond December 31 of the tax year. Notwithstanding any provision of this Title to the contrary, the Department of Revenue shall waive, in accordance with rules and regulations adopted pursuant hereto, any additions to a current tax liability due on the homestead of a low income taxpayer who enters an installment payment agreement with the Department, provided that the terms of the agreement are fully complied with by the taxpayer. In order to qualify for relief pursuant to this subsection, the taxpayer shall make application to the Department no later than the 31st day of March of the year in which the tax is due and payable. Provided however that any taxpayer qualified under subsection (2) shall have until June 30, 1982 to choose to be covered hereunder without additional penalty.

(b) Installment payment agreements with senior citizen low income taxpayers are authorized for amounts due on current real estate tax liabilities on the homestead of senior citizen low income taxpayers for terms extending beyond December 31 of the tax year; provided, however, that a senior citizen low income taxpayer must acknowledge in writing that he or she understands that entering into an installment payment agreement for a term extending beyond December 31 of the tax year will (1) jeopardize entitlement to the Pennsylvania Senior Citizen Real Property Tax Rebate, and (2) result in a lien against the homestead. Notwithstanding any provision of this Title to the contrary, the Department of Revenue shall waive, in accordance with rules and regulations adopted pursuant hereto, any additions to a current tax liability due on the homestead of a senior citizen low income taxpayer who enters an installment payment agreement with the Department, provided that the terms of the agreement are fully complied with by the taxpayer. Notwithstanding any provision of this Title to the contrary, any interests and penalties which shall accrue or become due and payable by any senior citizen low income taxpayer shall be abated upon successful completion of an installment payment agreement. The Department of Revenue shall suspend further collection proceedings against a senior citizen low income taxpayer during the term of an installment payment agreement, provided that the terms of the agreement are fully complied with by the taxpayer. In order to qualify for relief pursuant to this subsection, the taxpayer shall make application to the Department no later than the 31st day of March of the year in which the tax is due and payable, provided however, that said senior citizen taxpayer shall have until June 30, 1982 in calendar year 1982 to make application hereunder without addition or penalty.

(3) Rules and Regulations.^[186]

(a) The Revenue Commissioner may prescribe such rules and regulations as are deemed necessary to effectuate the purpose of this Section including but not limited to rules and regulations to establish the forms and/or procedures:

(i) To enter into installment payment agreements; and

(ii) To obtain recognition as a low income or senior citizen low income taxpayer.

(4) An application made by completing the forms provided for under subsections (3)(a)(i) and (3)(a)(ii) shall become effective immediately upon filing, with no requirement for approval by the Department of Revenue.^[187]

(5) Prohibited Conduct; Penalties and Additions.^[188]

(a) No person shall intentionally make any false statement when applying to enter into an installment payment agreement, to obtain waiver, or to be recognized as a low income taxpayer. If it is determined that a taxpayer entered into an installment payment agreement, received a waiver, or was recognized as a low income taxpayer on the basis of a false statement, the agreement shall be null and void, and the applicant shall be required to pay the City the outstanding tax liability and any additions to tax waived by the Department as a result of said statement.

(b) If a taxpayer who has entered into an installment payment agreement breaches that agreement and fails to cure the breach within a reasonable period of time established by the Department, the agreement shall be null and void.

(6) Review by Tax Review Board.^[189]

(a) The Tax Review Board is authorized to review any adverse final decision or determination of the Department relating to an individual’s continued eligibility for a waiver as provided herein, in like manner and with the same effect as a petition for waiver of interest and penalties, as provided in Chapter 19-1700 of this Title.

(b) The Tax Review Board is authorized to review any adverse final decision or determination of the Department relating to initial or continued eligibility for recognition as a low income taxpayer or to the taxpayer’s performance of his or her obligations under an installment payment agreement with the same effect as a petition for review pursuant to Chapter 19-1700 of this Title.