Local Tax Reform  
Education Project

If you have questions about Pennsylvania local taxes and local tax reform, contact Tim Kelsey or your local  Penn State Cooperative Extension office

Other Links!
PSU Economic & Community Development

Ag Econ & Rural Soc

Penn State Cooperative Extension

Disclaimer: The Pennsylvania Local Tax Reform website is strictly intended to help you know and understand more about local taxes and the tax options available to jurisdictions in Pennsylvania.  The material is general and educational in nature. It is not intended to be legal advice, nor to replace the need for legal advice. If legal advice is what you need, you are encouraged to seek the aid of a competent professional in your area.

Webpage and content developed  by Tim Kelsey,  Professor of Agricultural Economics, Department of Agricultural Economics and Rural Sociology, Penn State University

Non-partisan educational information about local taxes in Pennsylvania

Act 1 of Special Session 2005/06 information!

• Questions & Answers about Act 1
• Complete text of Act 1
• Understanding Act 1 Educational Bulletin  NEW!

Brief Overview of the Pennsylvania Local Tax Reform Website

Understanding the available options and their impacts is important if citizens are to provide informed input to legislators about tax reform, and if communities are to select the local taxes which are appropriate for their population, services, and resources.

This website is intended to help citizens better understand local taxation in Pennsylvania, some of the arguments for and against local tax reform, the options available, and the potential impact of those options.  The information includes focus on:

1. An Introduction to Pennsylvania Local Taxes
The variety of local taxes in Pennsylvania can be difficult to understand.   Several aspects are particularly important to consider.  These include:

• What are the local taxes?
• How are these taxes currently being used in Pennsylvania?
• What options are available to school districts and local governments?
• What concerns underlie recent local tax reform efforts?

2. Arguments For and Against Local Tax Reform

3. Local Tax Options

Act 1 of Special Session 2005-6 uses state gaming money and an optional local contribution to target real property tax reductions to homeowners and farmers via Homestead and Farmstead Exclusions.

• Questions and Answers
• Homestead and Farmstead Exclusions

Act 72 of 2004 uses state gaming money and a local qualifying contribution to target real property tax reductions to homeowners and farmers via Homestead and Farmstead Exclusions.

• Questions and Answers
• Homestead and Farmstead Exclusions

Act 24 of 2001 focuses solely upon giving school districts the option of eliminating the Occupation Tax.

• Questions & Answers about Act 24
• Complete text of Act 24
• Potential impact of Act 24 on school districts (note these calculations are based upon 1998-1999 data, so should be viewed as estimates)
• Potential impact of Act 24 on taxpayers

Act 50 of 1998 provides several local tax options which are complex (and can be confusing to understand).  These include:

• New local tax option for school districts
• Homestead and Farmstead Exclusions

 

4. Places to Find Additional Resources

Much of the information on this website also is available in printed form

For more than 75 years Pennsylvanians have relied on Penn State Cooperative Extension for up-to-date information and new ways to improve their communities. Cooperative Extension brings the resources of Penn State University into Pennsylvania's communities, and is a joint partnership between University- and county- based staff and citizens.

Courses, workshops, and other programming are made available to all communities requesting program assistance, and are tailored for local needs. If you would like information about these or other programs, or copies of the materials, contact your local Penn State Cooperative Extension office or visit the Economic & Community Development Extension website.