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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: April 30, 2018 04:50 PM
From: Representative Marcia M. Hahn and Rep. Rosemary M. Brown
To: All House members
Subject: The 100% Property Tax Exclusion Program

In the near future, we intend to introduce legislation that establishes a property tax reform program to enable school districts to exclude up to 100% of a homeowner’s school property tax bill.

On November 7, 2017, an amendment to the Pennsylvania Constitution was approved by voters to further provide for the expansion of the property tax relief program known as the Homestead Exclusion. The amendment increased the allowable homestead and farmstead exclusion to 100% of the assessed value of all homesteads and farmsteads. If fully funded, this change would allow school districts to eliminate the collection of property taxes within each school district.

Since the passage of the constitutional amendment, there have been many discussions regarding the best way for the General Assembly to craft enabling legislation that would provide for the elimination of owner-occupied residential school property taxes via the homestead and farmstead exclusion. Our legislation will provide this funding by increasing the state Personal Income Tax (PIT) by 1.72% to cover the amount needed to offset owner-occupied residential school property taxes.

While there have been many tax shifts and replacements proposals to reduce or eliminate property taxes, we believe implementing a small increase to the PIT is the best approach to relieving the current property tax burden on homeowners. The PIT represents one of the most stable taxes levied in the Commonwealth and will provide assurance to school districts concerned with the fluctuations that many other funding experience as economic conditions change.

Implementation of this legislation is necessary to provide complete property tax relief to seniors and hardworking homeowners throughout the Commonwealth. We hope you will join us in sponsoring this important legislation.

If you have any questions regarding this legislation, please contact Gail Pakosky via email gpakosky@pahousegop.com or 717-783-8573 or Tiffany Whittaker via email twhittak@pahousegop.com or 717-260-6171.

Introduced as HB2329