1. Homestead Exclusion Constitutional amendment
House Bill 1285
State Representative Lynda Schlegel Culver
108th District

2. What is a Homestead?
“Under law, a homestead is defined as dwelling, including the parcel of land on which the dwelling is located and the other improvements located on the parcel…”

3. What is a Homestead Property Exclusion?
“A homestead exclusion lowers a property owner’s tax bill by reducing the assessed value of the home before property taxes are levied.”

4. Current Law
State Constitution permits local government – counties, municipalities and school districts – to exclude up to 50 percent of the median assessed home value from a homeowner’s tax bill.
The exclusion cannot exceed fifty percent of the median assessed value of a homestead property within a local taxing jurisdiction.
A local taxing authority is not permitted to increase the millage rate of its tax on real property to pay for the exclusion.

5. (Assessed Value – Homestead Exclusion) x Tax Rate = Tax Owed
For Example…
If the median assessed value of homes within your district is $100,000, the maximum allowable homestead exclusion is $50,000 (50 percent of $100,000.) The amount your local taxing jurisdiction permits as an exclusion would be subtracted from the assessed value of your home prior to your property tax rate being applied:
(Assessed Value – Homestead Exclusion) x Tax Rate = Tax Owed

6. Nov. 7, 2017 General Election
Voters will have an opportunity to vote on a property tax reform measure.
The exclusion level can be increased to 100 percent of the assessed value of each homestead property within a local taxing jurisdiction.
If the referendum is approved by voters, the Pennsylvania Constitution will be successfully amended to include language in House Bill 1285.
Nothing will immediately change regarding the current Homestead Exclusion program.
Enabling legislation will need to be passed before any changes are seen in a local property tax bill.

7. Enabling Legislation Would…
Provide the General Assembly the opportunity to implement guidelines and parameters as to how a local taxing jurisdiction could go about eliminating property taxes on homesteads.
Allow local or state taxes to be implemented or increased in order to provide the funds to replace the lost revenues from the elimination of the property taxes on homesteads.

8. Contact information
State Representative Lynda Schlegel Culver
District Office
106 Arch St.
Sunbury, PA
Part-Time Office
Milton Borough Building
2 Filbert St.
Milton, PA
Open Monday-Friday, from 8:30-11:30 a.m.
Capitol Office
402B Irvis Office Building
Harrisburg, PA 17120