Property Tax Reduction Allocations
2023-2024 Fiscal Year
Pennsylvania will continue its broad-based property tax relief in 2023-24 based on Special Session Act 1 of 2006. The Commonwealth's Budget Secretary certified that $777,200,000 in state-funded local tax relief will be available in 2023-24. When combined with the senior citizen Property Tax/Rent Rebate program, total state-funded property tax relief will be $864.4 million next year.
Each school district will determine the actual amount of property tax relief for each homestead and farmstead after determining its 2023-24 real estate tax rate. The files directly below include the total state-funded property tax relief that will be available for each school district, the number of approved homesteads and farmsteads as of May 1, and a property tax relief estimate for each homestead and farmstead property.
School districts with a local earned income tax specifically 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 directly below detail the State Property Tax Reduction Allocation distribution to each school district:
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.
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 school district's options if the amount available for property tax reductions exceeds the amount necessary to provide 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.
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 notification to school districts. The school board must send a copy of the resolution to the Department within five (5) days of adoption. The Department 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 ballot.
For press inquiries, please contact:
Office of Press and Communications | ra-PDE@pa.gov | 717-783-9802
For more information, please contact:
Division of Subsidy Administration | Bureau of Budget and Fiscal Management
ra-PropertyTax@pa.gov | 717-787-5423