Pennsylvania will continue its broad-based property tax relief in 2009-2010 based on Special Session Act 1 of 2006.  As required by law, the Commonwealth’s Budget Secretary certified on April 15, 2009, that $613,200,000 will be available in 2009-2010 in state-funded local tax relief.  When combined with the expansion of the senior citizen Property Tax/Rent Rebate program, total state-funded property tax relief will reach $770 million next year.

The files below include the total state-funded property tax relief that will be available for each school district, the number of approved homesteads and farmsteads, and an estimate of the amount of property tax relief for each homestead and farmstead.  Each school district will determine the actual amount of property tax relief for each homestead and farmstead after it determines its 2009-2010 real estate tax rate.

• 2009-10 Estimated State Property Tax Relief per Homestead  New 5/1/09
        PDF  |  Excel
  
  
• 2008-09 Estimated State Property Tax Relief per Homestead
        PDF  |  Excel 

School districts with an earned income tax designated for property tax reduction will combine this revenue with the state-funded allocation to determine the total property tax relief for each homestead and farmstead.

The files below detail the distribution of the state property tax reduction allocation by school district:

• 2009-10 State Property Tax Reduction Allocation:  PDF  |  Excel  New 5/1/09 
  
• 2008-09 State Property Tax Reduction Allocation:  PDF  |  Excel

Important Sections of Special Session Act 1 of 2006

Section 342 requires school districts to use their allocation to calculate a homestead and farmstead exclusion and to adopt a resolution implementing the exclusion by June 30, 2009.

Section 343 provides details on the itemized information that must be shown on school district real estate tax bills and requires a "Notice of Property Tax Relief" be included with the tax bill.

Section 335 describes the options if the amount available for property tax reductions exceeds the maximum allowable homestead exclusion, which is 50 percent of the median assessed value of homestead properties as required by the Pennsylvania Constitution.  The options are:  1) reduce the real estate tax rate for all properties and 2) reduce the earned income tax rate levied pursuant to section 321.

Section 505(a) and Section 324 describe the proration to property tax reduction allocations and Sterling Act Tax credits that occur when the amount available for distribution is less than $750 million.

Section 505(b) requires PDE to make two equal payments on the fourth Thursday of August and the fourth Thursday of October 2009.

Section 505(d) requires the City of Philadelphia to use the allocation calculated for Philadelphia City School District to reduce the rate of the wage tax on residents and nonresidents.

Section 903(a) allows a school board to reject the property tax reduction allocation within 30 days of the May 1, 2009, notification to school districts.  The school board must send a copy of the resolution to PDE within five (5) days of adoption.  PDE must then notify election officials in each county of the school districts rejecting their allocation.  Pursuant to section 904(c), county election officials must then cause a referendum question to be placed on the November 2009 ballot.

The files on this page open with Microsoft Excel (XLS) or Adobe (PDF) for which free software is available.