Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1214

Introduced

4/15/25

Refer

4/15/25

Caption

In subjects of taxation and exemptions, further providing for temporary tax exemption for residential construction.

Impact

The impact of HB 1214 on state laws is significant as it introduces a new framework for the taxation of residential properties under construction. By delaying the assessment of property taxes, the bill seeks to encourage new housing projects, which could address housing shortages and promote economic growth within local communities. Moreover, this bill could potentially influence local tax revenues, as municipalities may experience delays in receiving property tax revenues until new homes are occupied.

Summary

House Bill 1214 amends the General County Assessment Law to provide a temporary tax exemption for residential construction. Specifically, it stipulates that new single and multiple dwellings, as well as improvements to existing unoccupied dwellings, will not be subject to property taxation until specific conditions are met: either the dwelling is occupied, conveyed to a bona fide purchaser, or thirty months from the commencement of improvement. This legislative move is aimed at stimulating residential development by alleviating the financial burden associated with property taxes during the initial phases of construction.

Sentiment

The general sentiment around HB 1214 appears to be positive among developers and those advocating for increased housing availability. Supporters believe that the temporary tax exemption will lead to an increase in residential construction projects by making them more financially viable. However, there may also be concerns from local governments about the implications of reduced immediate tax revenues and the long-term ability to fund essential services through property taxes.

Contention

Notable points of contention could arise from this bill's potential to impact local government budgeting and revenue models. While supporters highlight the benefits of incentivizing new housing developments, critics may worry about the loss of immediate tax income needed for community services. Additionally, debates may center on the appropriateness of state intervention in local taxation matters, as some may argue that local municipalities should have greater control over how property taxes are assessed and collected.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1640

In subjects of taxation and exemptions, further providing for exemptions from taxation.

PA HB520

In subjects of taxation and exemptions, further providing for exemptions from taxation.

PA SB599

In consolidated county assessment, further providing for exemptions from taxation.

PA HB1639

In consolidated county assessment, further providing for exemptions from taxation.

PA HB691

In exemptions, applicability and penalties, providing for residential building construction defect remedies.

PA HB1307

In taxation for public transportation, further providing for local financial support; and, in fees, further providing for fee for local use.

PA SB844

In disabled veterans' real estate tax exemption, further providing for exemption.

PA HB1738

In taxation and finance, further providing for tax levy; and, in taxation, further providing for tax levies.

PA SB1220

In finance and taxation, further providing for tax levies.

PA SB656

In general provisions, further providing for definitions; in liquid fuels and fuels tax, further providing for definitions and for imposition of tax, exemptions and deductions and providing for electric vehicle road user charge; and imposing a penalty.

Similar Bills

No similar bills found.