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FOR IMMEDIATE RELEASE
September 23, 2008

Committee OK's Bills to Close Property Tax Loophole

Would set restrictions on reassessment appeals

The Senate Finance Committee approved legislation designed to close a legal loophole that has resulted in property tax increases for many Pennsylvania homeowners, according to Committee Chairman Senator Pat Browne (R-16).

Senate Bill 1258, introduced by Senator James Rhoades (R-29), and House Bill 1439, introduced by Representative Tim Seip (D-125), would set specific limits regarding when a local government can reassess property. The bills are similar in essence to previous bills by Senator Rhoades and Representative Seip that were approved by the General Assembly, but vetoed by the Governor.

"Senate Bill 1258 and House Bill 1439 have been amended to address the issues that were of concern to the Governor," Senator Browne said. "These measures address concerns that school districts are using sales of residential properties to impose spot reassessments that resulted in tax increases."

The Finance Committee also approved Senate Bill 1231, legislation introduced by Senator Roger Madigan, providing a sales and use tax exemption for aviation maintenance and repair services. Senator Madigan, who serves as Chairman of the Senate Transportation Committee, said the tax is a detriment to business in Pennsylvania and is "chasing out employers."

In addition, the Finance Committee also approved Senate Bill 1584, introduced by Senate Appropriations Committee Chairman Senator Gib Armstrong, and House Bill 1086, introduced by Representative Josh Shapiro. Both bills provide for the divestiture by the State Treasurer, the Pennsylvania Municipal Retirement System, the State Employees' Retirement System and the Public Schools Employees' Retirement System of investments in companies doing business in Iran and Sudan. 

Contact:

Stacey Connors
(Senator Browne)
(717) 787-1349