Bill > HB329

This bill modifies Pennsylvania's Taxpayer Relief Act to introduce several key changes related to property tax relief, particularly for senior citizens. The bill extends the current state funds distribution formula through fiscal year 2024-2025 and establishes a new distribution method for fiscal year 2025-2026 and beyond, which includes calculations based on various school district claims and reimbursements. It introduces a significant new provision for senior citizen tax relief, creating a "tax freeze" program where eligible homeowners aged 65 or older can prevent increases in their school property taxes beyond their base payment year. To qualify, seniors must have held a homestead exemption for five years, paid full property taxes, and apply within 45 days of their tax bill due date. The tax freeze remains in effect even if the property is transferred to a surviving spouse who is at least 65 or will turn 65 within six months. The Commonwealth will compensate school districts for the frozen tax increases, ensuring that districts do not lose revenue. The bill also modifies how the state calculates and transfers funds to school districts, prioritizing payments for senior citizen tax relief before other fund distributions. The changes are designed to provide meaningful property tax relief for senior homeowners while maintaining school district funding mechanisms.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=329