Bill > SB394

This bill proposes a constitutional amendment that would prohibit school districts from levying real property taxes on homesteads (primary residential properties) and farmsteads after June 30, 2030. The bill requires the state legislature to provide annual financial support to school districts that would be at least equal to the real property tax revenue collected from homesteads and farmsteads during the fiscal year ending June 30, 2030. To replace this lost revenue, the state would be authorized to implement various taxes, including state and local taxes on retail sales, personal income, earned income, and net profits. These new tax revenues (except for local income taxes) would be deposited into a dedicated "Stabilization of Education Fund" that can only be used to support school districts and cannot be redirected to other purposes. The amendment explicitly prohibits the General Assembly from creating any future real property taxes on homesteads or farmsteads. The proposed amendment would need to be passed by the General Assembly twice and then submitted to voters in a general or municipal election before becoming part of the Pennsylvania Constitution.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=394