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PA HB214

PA HB214
In realty transfer tax, further providing for excluded transactions; and, in local real estate transfer tax, further providing for imposition.


summary

Introduced
01/22/2025
In Committee
01/22/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in realty transfer tax, further providing for excluded transactions; and, in local real estate transfer tax, further providing for imposition.

AI Summary

This bill modifies Pennsylvania's tax code to provide a specific tax exclusion for first-time home buyers while also clarifying rules for local real estate transfer taxes. The bill defines a "first-time home buyer" as an individual who: resides or will reside in Pennsylvania, will be domiciled in a single-family residence, and has never previously owned a residential property in Pennsylvania or any other state, either individually or jointly through any legal entity. Importantly, for transfers involving multiple individuals on a deed, all parties must qualify as first-time home buyers to receive the tax exclusion. The bill also allows local political subdivisions (such as cities, boroughs, townships, and school districts) to continue levying local real estate transfer taxes, and specifically states that the new first-time home buyer exclusion will not apply to these local taxes. The changes will take effect 60 days after the bill is signed, and will apply to real estate transfers made on or after that date, providing a clear pathway for new homeowners to potentially benefit from the tax exclusion.

Committee Categories

Housing and Urban Affairs

Sponsors (7)

Last Action

Referred to Housing & Community Development (on 01/22/2025)

bill text


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