Homeowner Tax Relief Act (Act 72 of 2004)

The Pennsylvania general Assembly and Governor passed a new local tax reform

alternative, Act 72 of 2004, which is entitled “The Homeowner Tax Relief Act.” Unlike

earlier tax reform efforts, which relied solely upon local tax revenues to reduce real

property tax bills, Act 72 uses a mix of new local tax money and state gaming revenue.

Act 72 provides this option to all Pennsylvania school districts.

School districts are not required to participate in Act 72, but must choose by May 30,

2005 whether to accept its provisions. In order for a district to participate and receive

state gaming funds they must make a “qualifying contribution” by raising their local

income tax by .1 percent. This initial increase is nominal but the increase could be higher

if the district opts to give higher real property reductions.

Important notice to all residents that own a homestead or farmstead in a school district

that adopted Act 72: The school district or their agent will be mailing homestead and

farmstead exemption forms to each resident. It is very important that you complete this

form and mail it to the address that is listed on the form. If you do not receive a form

contact your school district administration office and request a form. Failure to complete

this form and returning it will prohibit you from having a valid exemption and you will

not receive a reduction in your real estate tax.

Click on the following link to view the Homeowner Tax Relief Act (Act 72 of 2004):

Act 72 of 2004 Homeowner Tax Relief Act