Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB842

Introduced
3/10/25  

Caption

In realty transfer tax, providing for deductions.

Impact

If enacted, HB842 would provide significant relief to low-income households, particularly those reliant on Supplemental Security Income, by enabling them to deduct the realty transfer tax from their taxable income. Furthermore, it also extends this benefit to sellers in transactions where the property is sold for a price not exceeding 80% of the median purchase price in the county. This change is anticipated to enhance housing affordability and support home ownership among economically disadvantaged populations.

Summary

House Bill 842 aims to amend the Pennsylvania Tax Reform Code of 1971 by introducing specific tax deductions associated with the transfer of residential properties. This bill allows for a tax deduction for buyers who receive Supplemental Security Income benefits or have a household income not exceeding 215% of the Federal poverty level. The intent is to make housing more affordable for low-income individuals by easing the financial burden associated with realty transfer taxes during property purchases.

Sentiment

The sentiment surrounding HB842 appears to be generally positive, particularly from advocates focused on low-income housing and social equity. Supporters argue that it is a necessary step toward making homeownership accessible for more Pennsylvanians, particularly in a market where housing prices are rising. However, there may be reservations regarding the fiscal implications of such tax deductions and whether they could affect overall state revenue.

Contention

One point of contention with HB842 could revolve around the implications of the new deductions on local revenues and the potential debates over who benefits most from these changes. Critics may raise concerns regarding the sustainability of tax deductions, especially as they relate to varying property values across counties. Additionally, the calculation of the median purchase price and its implications might lead to discussions on equity and fairness in home buying across different demographics.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1939

In realty transfer tax, providing for deductions.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB1316

In realty transfer tax, further providing for transfer of tax.

PA HB1387

In realty transfer tax, further providing for excluded transactions; and, in local real estate transfer tax, further providing for imposition.

PA SB654

In sales and use tax, further providing for

PA SB815

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

PA HB2169

In personal income tax, providing for preceptor tax deduction.

PA SB532

In realty transfer tax, further providing for transfer of tax.

PA HB2245

In realty transfer tax, further providing for transfer of tax.

PA HB2388

In personal income tax, further providing for imposition of tax; in gross receipts tax, further providing for imposition of tax, providing for transfers to Alternative Fuels Incentive Fund and further providing for establishment of revenue-neutral reconciliation; eliminating the tax imposed upon each dollar of the gross receipts received from the sales of electric energy; providing for the benefit of consumers and for a civil penalty; and making a repeal.

Similar Bills

No similar bills found.