Pennsylvania House OKs real estate tax breaks
5/30/2015 | Real Estate Blog
Many homeowners in Philadelphia have felt the burden of the Actual Value Initiative, which calculates a homeowner’s property taxes based on the property’s market value. The initiative, which launched in the 2014 tax year, caused an increased tax rate for many people living in the city.
Now, however, state lawmakers from both sides of the aisle have found a solution that they believe will offer some relief to these homeowners. The plan is to lower property taxes for schools across the state and put more money into rent and property tax rebate programs in the state. In exchange, they plan to raise income taxes as well as sales and use taxes.
Lawmakers say that Pennsylvania residents can expect to see property tax relief to the tune of $5 billion. What may help those who are in a tight spot because of the Actual Value Initiative, is the dollar-for-dollar plan that is the works. For every dollar made through this plan, one dollar will be put toward property tax reductions.
Republicans and Democrats in Pennsylvania believe that this bill is the best way to support local school districts while relieving some of the financial burden that comes with owning property in Philadelphia. The bill will now go to the State Senate for approval.
If you live in Philadelphia and own a home or other property, do you think this bill works? Will it provide the relief you need?
Source: The Philadelphia Tribune, “State House passes real estate tax relief plan,” Damon C. Williams, May 28, 2015