PA House of Representatives Passes Property Tax Relief Bill
The Pennsylvania House of Representatives just passed H.B. 504, which will provide state-wide property tax relief. Under the legislation passed by the house, increases to the personal income tax, sales & use tax, and hotel tax would be used to fund the relief. As passed, the increases would be effective January 1, 2016 as follows:
- Personal income tax rate would increase from 3.07% to 3.70%
- Sales and Use Tax would increase from 6% to 7%
- Hotel Tax would also increase from 6% to 7%
The additional revenues earned from the tax increases would be allocated dollar-for-dollar throughout the state to reduce millage rates and fund homestead exclusions.
This is the first step in the process of passing a 2015-2016 budget for the Commonwealth to give property tax relief to Pennsylvania’s home owners. The measure will now being sent to the Senate for action and then, if approved by both chambers, on the governor for his signature.