NEWS BRIEFS

Stay up to date on current News & Issues.

General News
Pennsylvania offers property tax/rent rebate program for seniors

Bucks County
Falls to discuss proposed sewer lateral ordinance

Chester County
County unemployment rate is so low, industries face a ‘labor shortage’

Delaware County
Upper Chichester meeting for Realtors®

Montgomery County
Reports point to ‘vibrant real estate market’ in Montgomery County

Philadelphia County
A thousand new homes are planned next to Graffiti Pier
 

 

Property tax referendum will be on November ballot

On Nov. 7, Pennsylvanians voting in the municipal general election will have the opportunity to vote on a referendum question that could lead to substantial property tax reform. Though it hasn't yet received widespread attention, the Property Tax Relief and Homestead Exclusion referendum, if approved, would amend the state constitution to allow local taxing authorities to exclude from taxation the entire assessed values of homes within their borders. 

Essentially, municipalities, counties and school districts would have the authority to zero out many residents' property taxes. Currently, these taxing entities can exempt only up to 50 percent of the median assessed home value. The Pennsylvania Association of Realtors® supports the Property Tax Relief and Homestead Exclusion Amendment, which would provide local taxing entities the flexibility of providing property tax relief to homeowners.

Essentially, municipalities, counties and school districts would have the authority to zero out many residents' property taxes.

Here is the question that voters will see: "Shall the Pennsylvania Constitution be amended to permit the General Assembly to enact legislation authorizing local taxing authorities to exclude from taxation up to 100 percent of the assessed value of each homestead property within a local taxing jurisdiction, rather than limit the exclusion to one-half of the median assessed value of all homestead property, which is the existing law?"

There are a few important points to keep in mind. The exclusion would apply to homesteads, which doesn't include, for example, commercial properties or second homes. Even if passed, the referendum would not have an immediate effect on residents' taxes. State legislators would need to enact legislation setting the parameters for local taxing entities to follow. Most importantly, the legislation would need to provide school districts and municipalities the ability to raise other taxes – such as earned income – to offset the loss of property tax revenue.  And those entities would not be required to exercise the new flexibility; in fact, only a handful of them utilize the full 50 percent exclusion limit allowed under existing law.

There will be more information about this referendum coming in the weeks leading up to the election. 

Flickr image of a Chalfont, Bucks County, home  by Doug Kerr (CC BY-SA 2.0)

Posted by: Pete Kennedy on Friday, September 22, 2017 at 9:00:00 am
tags: 

Comments

Leave a Comment

Designed and delivered by Accrisoft