Property Tax Relief for Pennsylvania
The 2009-10 Budget Will Provide
Nearly $787 Million in Continued Property Tax Relief

Pennsylvania will become even more competitive in 2009-10 through the continuation of last year’s historic reduction in the amount of property tax paid by each Pennsylvania homeowner. This budget marks the second year of long-anticipated property tax relief, which is designed to provide the greatest benefit for those communities with weak tax bases and high tax burdens, so they can increase their competitive edge.

Continuing Property Tax Relief for All
Pennsylvania Homeowners

The 2009-10 budget marks the second year of historic
property tax relief for all Pennsylvania homeowners. The
Taxpayer Relief Act – signed into law in 2006 – has already
eliminated school property taxes for more than 113,000 senior
citizens. In the coming year, Pennsylvania homeowners, on
average, will continue to receive nearly $200 in state-funded
property tax relief – with even more savings for older adults
who have the most urgent need.

The 2009-10 budget provides nearly $787 million in
property tax relief, including $612.9 million in broad-based
property tax relief and $143.4 million in property tax and
rent rebates for Pennsylvania’s senior citizens. When fully
in place, this tax reform will cut property taxes by more than
$1 billion each year.

• In 2009-10, the $612.9 million in broad-based property
tax cuts will translate to an average of nearly $200 for
every Pennsylvania household. Instead of reducing
property taxes, Philadelphia’s share of funding for
broad-based tax relief will be used to reduce the
city’s wage tax, which is a greater barrier to economic
growth in Philadelphia. The Taxpayer Relief Act also
allows Scranton to use a portion of its tax relief funds
to cut that school district’s wage tax, the highest of all
Pennsylvania school districts.

• The Property Tax/Rent Rebate program will provide
$143.4 million in property tax and rent rebates for
624,000 of Pennsylvania’s senior citizens earning less
than $35,000 a year. This program funds tax relief for
412,000 homeowners and 212,000 renters. These
older Pennsylvanians will receive additional property
tax relief through the broad-based property tax relief
eligible to all homeowners.

• In addition, senior citizens who pay a significant
portion of their income in property taxes or who
live in high property-tax areas will receive additional
targeted property tax relief totaling $30.6 million in
2009-10.
Pennsylvania’s favorable business and tax climate, along
with property tax reductions that are the direct result of the
successful implementation of expanded legalized gaming,
puts the commonwealth in a strong position to attract and
retain jobs. And the Governor’s plan for Protecting Our
Progress ensures that the economic gains Pennsylvania
has made over the last six years will not be lost in the face
of the current national economic challenges.

Source: Pennsylvaia State Budget _in_Brief from the PA state website, http://pa.gov/portal/server.pt/community/pa_gov/2966