Pa. House passes legislation freezing property taxes for longtime homeowners
Rep. Christina Sappey October 8, 2024 | 1:46 PM
HARRISBURG, Oct. 8 – The Pennsylvania House on Monday unanimously passed a bill aimed at freezing property taxes for longtime homeowners.
House Bill 2536 would amend the state constitution by removing the limitation permitting Longtime Owner-Occupant Programs only in Allegheny and Philadelphia counties, thereby enabling future legislation to allow all local taxing authorities the option to adopt such a program to provide greater levels of tax relief to seniors.
LOOPs provide property tax relief to homeowners who have lived in their homes for at least 10 years by exempting or deferring property tax increases – even if their home assessment values increase in future years.
“We’ve been hearing about the impact high property taxes have, particularly on our senior citizens, for decades, so I am very pleased that my colleagues in the House unanimously supported our bill,” said state Rep. Christina Sappey, D-Chester, who sponsored the bill. “This legislation would provide local governments a way to help those who have lived in their homes over a decade and have felt the burden of rapidly rising property taxes the most. Our state constitution already allows Philadelphia and Allegheny counties the option of creating LOOPs. It’s time to make this mechanism available to the whole state. I believe creating options to address property tax burdens on an ever-aging state is a worthwhile endeavor.”
“Property taxes is one of the biggest issues raised here in Lower Bucks County,” said state Rep. Jim Prokopiak, D-Bucks. “Rising property values and property taxes put a squeeze on many of our property owners, especially those on fixed incomes. By giving Bucks County and others the ability to implement a Loop program – we are providing local governments with a tool to keep people in their homes and reduce property tax burdens.”
Prokopiak, state Rep. Jennifer O’Mara, D-Delaware, and state Rep. Joe Ciresi, D-Montgomery, who represent each of Philadelphia’s collar counties, signed on to H.B. 2536 as co-prime sponsors.
"Homeowners deserve to stay in the place they’ve called home for most of their life, especially if they’re at a point now where they’re living on a fixed income," O'Mara said. "As legislators, it’s our responsibility to support Pennsylvania’s seniors and make life more affordable for them. The LOOP Act helps us do just that by giving communities across the commonwealth the ability to reduce the tax burden on older residents."
“With the continued development and rising property values in our area, we’ve seen too many long-term residents, especially seniors on fixed incomes, struggle to stay in the homes where they raised their families and the communities in which they lived their lives,” Ciresi said. “I am proud that the House passed our legislation to expand the Longtime Owner Occupants Program throughout the commonwealth, which will provide the property tax relief our local residents need and deserve.”
Philadelphia adopted a LOOP, and it is operated by the city’s Department of Revenue. It helps taxpayers who have lived in the home for a long time period and whose assessment has increased significantly (by more than 50% over the previous year or by more than 75% in the previous five years). Homeowners must also meet income eligibility which varies by size of the family.
In Philadelphia, if the demand exceeds the budget amount set aside for the program, the amount of individual discounts is reduced to meet the demand.
Allegheny County has not yet adopted an ordinance that would allow its municipalities, including Pittsburgh, to establish a LOOP.
The bill is a constitutional amendment that removes the county limitation, so on its own it does not have a municipal impact, Sappey said. If it were to pass in two consecutive sessions and be approved by public referendum, the General Assembly would then be permitted to consider legislation to allow additional taxing authorities to provide a LOOP.