Senate Bill 1137 will allow local taxing bodies to exclude from taxation 100 percent of the assessed value of owner-occupied homes in 2019.
To fund the expanded homestead exclusion program, the legislation would increase the personal income tax rate 1.98 percent to 5.05 percent. This Education Tax is expected to generate $9.3 billion, which will be placed in a separate account dedicated solely to property tax elimination.
Even with property tax elimination, Pennsylvanians will pay a lower income tax rate than surrounding states.
Taxpayers apply to their county for a homestead exclusion.
“We can all agree that any tax that would take a person’s home after working their entire life to pay for it is wrong and immoral. No individual should have to choose between paying for prescription medications, taking care of their health and paying for property taxes,” said Sen. Scavello. “People should be able to own their property and implementation of this legislation will protect and safeguard that constitutional right.”
To fund the expanded homestead exclusion program, the legislation would increase the personal income tax rate 1.98 percent to 5.05 percent. This Education Tax is expected to generate $9.3 billion, which will be placed in a separate account dedicated solely to property tax elimination.
Even with property tax elimination, Pennsylvanians will pay a lower income tax rate than surrounding states.
Taxpayers apply to their county for a homestead exclusion.
“We can all agree that any tax that would take a person’s home after working their entire life to pay for it is wrong and immoral. No individual should have to choose between paying for prescription medications, taking care of their health and paying for property taxes,” said Sen. Scavello. “People should be able to own their property and implementation of this legislation will protect and safeguard that constitutional right.”
