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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: December 28, 2018 01:44 PM
From: Representative Tina M. Davis
To: All House members
Subject: Study: Municipal Charitable Fund Donations for Property Tax Credits
It is undeniable that high property taxes are a major concern for Pennsylvania families. However, taxpayers across the country recently lost one tool for lowering their property tax obligations: the unlimited state and local tax (SALT) deduction. Prior to the December 2017 passage of the federal Tax Cuts and Jobs Act, there was no limit to the amount of state and local taxes that could be deducted on federal tax returns. This federal tax reform bill capped the amount of SALT deductions at $10,000. While the SALT cap was intended to provide relief to taxpayers by allowing the federal government to increase the standard deduction, some analysts have concluded that certain taxpayers will actually end up paying more as a result. Homeowners, those who itemize their deductions, and those who file jointly with a spouse are expected to be the hardest hit.

That is why I am introducing a resolution directing the Legislative Budget and Finance Committee (LBFC) to study and report on the establishment of charitable funds organized and maintained by municipalities, counties, and school districts for public projects to which property owners may donate in exchange for property tax credits. Our neighbors in New Jersey have already enacted a law to allow charitable donations in exchange for tax credits, and my resolution will direct the LBFC to study New Jersey’s law, as well as similar actions in other states, to determine if such a program may benefit the taxpayers of Pennsylvania. This resolution will help our Commonwealth find a way to provide relief to those Pennsylvania families who are feeling the loss of the unlimited SALT cap.

Please join me in showing our constituents that we are listening to their concerns regarding property taxes. Your consideration and co-sponsorship are appreciated.

Introduced as HR83