House Co-Sponsorship Memoranda

House of Representatives
Session of 2017 - 2018 Regular Session

Posted:	April 24, 2017 02:16 PM
From:	Representative Jack Rader, Jr.
To:	All House members
Subject:	PROPERTY TAX LIMITS ON REASSESSMENT

In the near future, I plan to introduce legislation to limit the tax increase a local taxing jurisdiction is permitted to impose on single properties during a county-wide easement. Currently, Pennsylvania law requires that millage rates are adjusted in a reassessment year. The taxing jurisdictions (i.e. county, municipality and school districts) cannot levy more taxes as a result of the reassessment, than it did the previous tax year, as a first step in the process. As a second step, a taxing district may then, by a separate vote, choose to adjust their millage rate if they desire to levy additional taxes. The law caps the additional revenue at 10% the total amount levied the preceding tax year. This statutory limit is different for school districts, which are limited the Act 1 Index, as provided by the State Department of Education. In recent years, the Act 1 Index has generally been between 2-3%. Unfortunately, there is no cap as to the percentage change of an individual tax amount. My legislation will fix the tax rate increase for individual taxpayers at not more than 10% greater than the total amount levied on the taxpayer in the preceding year. This limitation will help alleviate the property tax increase that many homeowners experience in the first year after a county-wide reassessment. I hope you will join me in sponsoring this important legislation.
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Introduced as HB1408