In Tuesday’s election, along with electing Larry Krasner (D) as district attorney and Rebecca Rhynhart (D) as city controller, Pennsylvanians voted in favor of a ballot question that asked whether a constitutional amendment should eliminate property taxes.
According to official election results, 53.98 percent voted yes and 46.02 percent voted against the Homestead Exclusion Amendment, which would allow local taxing authorities to exempt residents from paying property taxes on their homes.
In Philadelphia proper, 39.03 percent voted in favor and 60.97 percent voted against the proposed amendment, according to citywide results.
Rep. David Maloney (R) of Berks County sponsored the bill, saying that he receives a large number of complaints from his constituents about their property taxes. Pennsylvania has some of the highest property taxes in the nation that are set by their local government and schools. They account for about 30 percent of state revenue, including funding of public schools.
Since 1997, the law has allowed authorities to exclude from taxation up to 50 percent the amount of the median assessed value of homes. The amendment that Pennsylvania voted in favor of would allow authorities to exempt property taxes up to 100 percent.
What happens next?
Don’t expect your property taxes to immediately drop to $0. The state legislature now has to make moves to amend the law. In turn, jurisdictions that handle tax exemptions will have to replace the funds collected from property taxes from other sources of revenue (increased sales and state income taxes have been considered).
And even with the amendment, Pennsylvania homeowners will still have to pay property taxes on a portion of their school district’s long-term debt, which varies widely throughout the state. The Philadelphia School District, for example, has $270 million in long-term debt.
TLDR; there’s still a long way to go before this amendment becomes law. Stay tuned.
- Election Returns [Official]