A bipartisan property-tax reform bill would allow school districts to exclude up to 100 percent of a homeowner’s school property-tax bill.
An amendment to the state’s constitution in 2017 expanded the property-tax relief program by increasing the allowable homestead and farmstead exclusion to 100 percent of its assessed value.
This change would allow school districts to eliminate the collection of property taxes.
Under the reform bill, owner-occupied residential school property taxes would be eliminated via the homestead and farmland exclusion. The state’s personal income tax would increase from 3.07 percent to 4.87 percent. The increase would offset the property tax exemption.
“I hear from seniors and homeowners regularly about this property tax burden and how unfair and costly it is to them,” Rep. Pam Snyder (D-Greene/Fayette/Washington), who introduced the bill, said. “We realize that school districts need adequate funding to operate, but not on the backs of taxpayers, including first-time home buyers and family farms. The personal income tax is considered one of the more stable taxes levied in our state, and this will ensure districts will have the necessary funding for their schools.”
Reps. Rosemary Brown (R-Monroe/Pike) and Marcia Hahn (R-Northampton) were cosponsors.
The bill is under consideration in the state House Finance Committee.