The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Dependent.” A child who derives more than one-half of the child's total support during the entire taxable year from a taxpayer eligible for the special tax provisions of this act. Any person who is a dependent pursuant to the provisions of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) during a taxable year shall prima facie be deemed a dependent for the purpose of this act.

“Homestead.” A dwelling used as a home, occupied by a taxpayer as a primary residence. The term includes, but is not limited to, 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 multidwelling or multipurpose building and a part of the land upon which it is built to the extent that the eligible taxpayer is chargeable by a city of the first class for property taxes. The term also includes, but is not limited to, premises occupied by an eligible taxpayer if he is required by law to pay a property tax by reason of his ownership or rental of, including a possessory interest in, the dwelling, the land or both. 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 a city of the first class 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.

“Income.” 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 Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.), 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, workers' compensation and the gross amount of loss of time insurance benefits, life insurance benefits and proceeds, except the first $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 $500, but shall not include surplus food or other relief in kind supplied by a governmental agency or property tax rebate.

“Low-income taxpayer.” A taxpayer whose income does not exceed the maximum annual income allowable for an eligible claimant to participate in the Commonwealth's program for pharmaceutical assistance for the elderly, pursuant to the act of August 14, 1991 (P.L. 342, No. 36),¹ known as the Lottery Fund Preservation Act.

“Poverty.” An economic condition wherein the total amount of household income is insufficient to adequately provide the taxpayer, the taxpayer's spouse and dependent children with the necessities of life. For the purpose of determining eligibility for the tax exemptions and special tax provisions of this act, a taxpayer is deemed to be living at the poverty level if the taxpayer meets the low-income provisions defined under this act.

“Real estate taxes.” All taxes on a homestead imposed or authorized to be imposed for cities of the first class and school districts of the first class.

“Senior citizen.” A taxpayer who is 65 years of age or older or whose spouse, if a member of the household, is 65 years of age or older during a calendar year in which real property taxes are due and payable or was a widow or widower of someone who was 65 years of age or older and was 50 years of age or older during a calendar year or part thereof in which real estate taxes were due and payable. The term “widow” or “widower” shall mean the surviving wife or the surviving husband, as the case may be, of a deceased individual who has not remarried.

“Special tax provision.” The standards and qualifications provided under this act to establish the eligibility for and the refund or forgiveness of a portion of the taxpayer's real estate tax liability.