Pennsylvania House Bill 2735 updates the Public School Code of 1949 to restrict school districts from increasing real property taxes unless their projected ending fund balances meet specific limits. The bill establishes a sliding scale where larger districts with higher total budgeted expenditures must maintain lower percentages of committed, assigned, and unassigned funds compared to smaller districts. To ensure compliance, each district that approves a tax increase must submit certification data to the Department of Education by August 15 of each year starting in 2027.
This bill limits how much school districts that span multiple counties or municipalities can increase their property tax rates. It allows a district's tax rate to rise only by the amount of a specific index adjustment plus any prior year's rate, unless the increase is due to a formal reassessment of property values or a successful voter referendum. The rules apply to tax years starting after June 30, 2026, and are designed to prevent significant jumps in local property taxes for these multi-jurisdictional districts.
SB 1314 amends Pennsylvania's personal income tax law to increase tax rates for taxable years beginning after December 31, 2025. The bill raises the tax rate for residents from 3.7% to 9.7% and for nonresidents earning income from Pennsylvania sources from 3.7% to 9.7%. It also clarifies that income earned by certain trusts is taxable to the grantor rather than the trust itself. These changes directly affect Pennsylvania residents, nonresidents with Pennsylvania income, and individuals who establish or manage trusts.
This bill amends Pennsylvania's Tax Reform Code to increase personal income tax rates for taxable years beginning after December 31, 2025. It raises the tax rate for residents and nonresidents from 3.7% to 9.7% on all income, while maintaining a 3.7% rate for specific income categories. The legislation also clarifies how trust income is taxed by aligning Pennsylvania rules with federal Internal Revenue Code provisions regarding grantor trusts.
This bill directs Pennsylvania's Department of Environmental Protection to remove a specific third-class county with a population between 215,000 and 216,000 from the enhanced vehicle emission inspection program within 60 days of the bill's effective date. The department must then submit a revised State implementation plan to the U.S. Environmental Protection Agency by January 1, 2027, demonstrating that the county can maintain federal air quality standards without the inspection program. The plan must comply with federal law and ensure it does not interfere with air quality goals or federal funding, with formal notifications sent to state legislative committee chairs upon EPA approval.
HB 2198 repeals the Computer Data Center Equipment Incentive Program from Pennsylvania's Tax Reform Code of 1971. This bill eliminates tax exemptions and refunds previously available for investments in data center equipment, such as servers, cooling systems, and energy infrastructure. The repeal directly affects computer data centers and their owners/operators who previously qualified for these tax benefits under Article XXIX-D. The policy change removes a specific tax incentive program without creating new provisions. This is a procedural change to the tax code, ending an existing program for data center equipment investments.
SB 1192 requires Pennsylvania school districts to hold a public referendum for tax increases exceeding the annual index, beginning with the 2026-2027 fiscal year. It mandates that school boards submit specific tax increase proposals to voters at the election immediately preceding the new fiscal year, with approval requiring a majority vote. This directly affects school districts seeking to raise property or income taxes for public school funding, as well as voters in those districts who must approve such increases. The bill modifies existing referendum requirements under the Taxpayer Relief Act to ensure voter consent before certain tax hikes take effect.
HB 2247 amends Pennsylvania's Public School Code to require school districts spanning multiple counties or municipalities to set uniform tax rates across their entire district. The bill provides four methods for achieving this, including calculating rates based on market values (not exceeding 75% of property value) or using a single tax rate if jurisdictions share consistent assessment standards. This change directly affects multi-jurisdictional school districts, reducing disparities in how property taxes are applied across county or municipal lines. The bill standardizes tax collection without altering overall tax burdens on property owners.
SB 1153 modifies Pennsylvania's corporate net income tax rules to clarify when remote work performed by employees affects tax liability. It states that work by Pennsylvania-resident employees who work remotely in Pennsylvania less than 50% of their time (and whose primary work location is outside Pennsylvania) is no longer subject to Pennsylvania corporate tax. The bill replaces an existing regulation (61 Pa. Code § 153.23(b)) that conflicted with this change. The amendment applies to tax years beginning after December 31, 2023.
HB 2142 repeals a 1936 law that imposed an 18% tax on liquor sold by Pennsylvania's state-run liquor stores (operated by the Pennsylvania Liquor Control Board). The repealed law defined "liquor" and required the Board to collect the tax from customers and remit it to the state treasury, with specific reporting procedures. This bill eliminates the tax requirement and its associated administrative rules, meaning the state will no longer collect this specific tax from liquor sales at state stores. The repeal affects the Pennsylvania Liquor Control Board's operations and the state's revenue system for this historical tax.
