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For taxpayers who may be
experiencing difficulty in
paying their property
taxes, there may be help.
Most cities in the United
States have Property Tax
Poverty Exemption Policy
and Guidelines. You may
be eligible to waive your
annual property tax for
one year read more
experiencing difficulty in
paying their property
taxes, there may be help.
Most cities in the United
States have Property Tax
Poverty Exemption Policy
and Guidelines. You may
be eligible to waive your
annual property tax for
one year read more
GOVERNOR RENDELL SIGNS BILL TO DELIVER LARGEST
PROPERTY TAX CUT IN PENNSYLVANIA HISTORY
$1 BILLION CUT WILL BE DELIVERED TO PENNSYLVANIA
HOMEOWNERS; SENIORS WIN BIG
PROPERTY TAX CUT IN PENNSYLVANIA HISTORY
$1 BILLION CUT WILL BE DELIVERED TO PENNSYLVANIA
HOMEOWNERS; SENIORS WIN BIG
| Pennsylvania Property Tax Home Page |
NANTICOKE — Governor Edward G. Rendell today signed Special
Session House Bill 39 (SS HB 39) into law at the home of Nellie Hughes,
which will completely eliminate the Nanticoke woman’s property tax
burden, as well as property taxes for hundreds-of-thousands of seniors.
SS HB 39 delivers the largest property tax cut in Pennsylvania history –
$1 billion annually to all Pennsylvania homeowners.
“After 30 years of debate and failed plans, Pennsylvanians like Nellie
Hughes will finally get the tax relief they deserve,” said Governor Rendell,
who was joined by other Nanticoke homeowners who will also see
significant property tax relief. “Today is a great day for Pennsylvania
homeowners, especially seniors who have been driven from their homes
as they attempt to escape the burden of skyrocketing property taxes for
far too long. Here in Luzerne County, 42 percent of all seniors will get
the full cost of their school property taxes paid for by the state – that is
nothing short of remarkable.
“This day is a major victory for Pennsylvanians who have fought for
decades to have their property taxes cut. Every homeowner in
Pennsylvania will not only get significant reduction, but they will finally get
a say in future tax increases. This bill represents a victory of the possible
over politics-as-usual.”
In addition to guaranteed property tax relief for every homeowner from
gaming revenue, SS HB 39 guarantees Pennsylvania voters will have the
option of reducing their property taxes by at least another $1.4 billion in
the spring of 2007 by voting to shift a portion of their property taxes to
local income taxes.
SS HB 39 also ensures that more than $250 million of the $1 billion from
gaming will go to seniors with incomes under $35,000. Nearly 600,000
Pennsylvania seniors will benefit from higher state rebates or will be
added to the state rebate program for the first time by increasing the
maximum income limit to $35,000 (which excludes half of Social Security
income) and raising the top rebate to $650.
The historic property tax reduction will mean Mrs. Hughes, 88, who has
lived in her home for more than 50 years, will receive the top rebate and
drop her property tax bill to $48. Once gaming revenue hits $400 million,
the Greater Nanticoke Area School District resident will pay zero property
tax.
“When I traveled across this state as a candidate, I heard from seniors in
every corner of Pennsylvania who shared the dire circumstances they
face and the difficult decisions they must make to keep their homes.
From putting off purchasing medicine to skipping meals, Pennsylvania’s
seniors were falling victims to rising property tax bills. Today, more than
200,000 seniors will have that burden lifted completely – and, another half-
a-million will finally get tremendous relief.
“This bill will not just benefit seniors, however. When I called a Special
Session of the Legislature on Property Taxes last September, I asked that
each and every homeowner benefit from gaming proceeds. By signing
this bill, we guarantee that every Pennsylvania homeowner’s property tax
bill is reduced, and that taxpayers will have input in their school tax bills.
“While our work is never really finished as we work to improve the lives of
Pennsylvanians, today we made a tremendous step in the right direction.”
Governor Rendell said this bill was the product of that special session and
he thanked House and Senate leaders and members who worked very
hard to craft the bill he signed.
Highlights of SS HB 39
Session House Bill 39 (SS HB 39) into law at the home of Nellie Hughes,
which will completely eliminate the Nanticoke woman’s property tax
burden, as well as property taxes for hundreds-of-thousands of seniors.
SS HB 39 delivers the largest property tax cut in Pennsylvania history –
$1 billion annually to all Pennsylvania homeowners.
“After 30 years of debate and failed plans, Pennsylvanians like Nellie
Hughes will finally get the tax relief they deserve,” said Governor Rendell,
who was joined by other Nanticoke homeowners who will also see
significant property tax relief. “Today is a great day for Pennsylvania
homeowners, especially seniors who have been driven from their homes
as they attempt to escape the burden of skyrocketing property taxes for
far too long. Here in Luzerne County, 42 percent of all seniors will get
the full cost of their school property taxes paid for by the state – that is
nothing short of remarkable.
“This day is a major victory for Pennsylvanians who have fought for
decades to have their property taxes cut. Every homeowner in
Pennsylvania will not only get significant reduction, but they will finally get
a say in future tax increases. This bill represents a victory of the possible
over politics-as-usual.”
In addition to guaranteed property tax relief for every homeowner from
gaming revenue, SS HB 39 guarantees Pennsylvania voters will have the
option of reducing their property taxes by at least another $1.4 billion in
the spring of 2007 by voting to shift a portion of their property taxes to
local income taxes.
SS HB 39 also ensures that more than $250 million of the $1 billion from
gaming will go to seniors with incomes under $35,000. Nearly 600,000
Pennsylvania seniors will benefit from higher state rebates or will be
added to the state rebate program for the first time by increasing the
maximum income limit to $35,000 (which excludes half of Social Security
income) and raising the top rebate to $650.
The historic property tax reduction will mean Mrs. Hughes, 88, who has
lived in her home for more than 50 years, will receive the top rebate and
drop her property tax bill to $48. Once gaming revenue hits $400 million,
the Greater Nanticoke Area School District resident will pay zero property
tax.
“When I traveled across this state as a candidate, I heard from seniors in
every corner of Pennsylvania who shared the dire circumstances they
face and the difficult decisions they must make to keep their homes.
From putting off purchasing medicine to skipping meals, Pennsylvania’s
seniors were falling victims to rising property tax bills. Today, more than
200,000 seniors will have that burden lifted completely – and, another half-
a-million will finally get tremendous relief.
“This bill will not just benefit seniors, however. When I called a Special
Session of the Legislature on Property Taxes last September, I asked that
each and every homeowner benefit from gaming proceeds. By signing
this bill, we guarantee that every Pennsylvania homeowner’s property tax
bill is reduced, and that taxpayers will have input in their school tax bills.
“While our work is never really finished as we work to improve the lives of
Pennsylvanians, today we made a tremendous step in the right direction.”
Governor Rendell said this bill was the product of that special session and
he thanked House and Senate leaders and members who worked very
hard to craft the bill he signed.
Highlights of SS HB 39
- Fast property tax relief. Pennsylvania’s senior citizens – who are
on fixed incomes and need the most immediate tax relief – will not
have to wait for the revenue from gaming to start coming in before
they receive tax relief. And, relief for all taxpayers will come sooner
because of the requirement that $100 million be held in reserve
(The initial reserve was $400 million). This more reasonable
reserve level will expedite the delivery of broad-based property tax
relief. - No State imposed income tax shift. A previous requirement to raise
the earned income tax (EIT) by one-tenth-of-one percent in order to
qualify for state-funded tax relief is eliminated. Now, every school
district will be able to receive tax relief from the state – without any
mandate to raise local taxes. SS HB 39 leaves the decision to shift
to income taxes up to local voters, with no strings attached. - Greater taxpayer control over future school tax increases in every
school district. Beginning this year, taxpayers in every school
district will have a greater voice in tax increases. School boards will
still be able to raise property taxes each year to keep up with
inflation – and even more in many communities – but sensible and
fair voter controls mean that taxpayers will now have a direct say in
the most extreme tax increases. - More flexible referendum exceptions. The new law wisely expands
the exceptions for special education, health care costs and pension
obligations. The 10 exceptions that school boards could seek in
order to raise taxes faster than inflation because of emergencies or
educational necessities are maintained – and they add greater
flexibility where school districts need it the most. - New ability to combat high wage taxes: SS HB 39 gives Scranton
the power to use up to half of its state allocation from gaming to
reduce its wage tax – which is the second highest in the state. The
law also maintains Philadelphia’s historic wage tax relief, which,
when combined with the city’s own mandated tax reductions will
bring the wage tax below 4 percent for city residents starting in
2009. Because cities with high wage taxes will be unlikely to ever
make a shift to increase their earned income taxes to fund property
tax relief, senior citizens in Pittsburgh, Philadelphia and Scranton
who earn up to $30,000 a year will have their property tax rebate
increase by an additional 50 percent.
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