Happenings in Harrisburg - A Legislative Update - October 14, 2024

There were quite a few updates with tax and finance related bills:

• HB 2536 (Sappey) - Amends the Pennsylvania Constitution to make it possible for other counties beyond Philadelphia and Allegheny Counties to create Longtime Owner-Occupant Programs (LOOPs). The Longtime Owner-Occupant Program gives 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.
  • This bill passed the House on 10/7 by a vote of 202-0. It now goes to the Senate for further consideration.
  • Link to the bill here: btCheck.cfm (state.pa.us)

• • This bill received second consideration on the Senate floor on 10/7.               

• SB 1307 (Argall) - Creates the Keystone National Finance Authority to finance infrastructure and other public benefit projects. The Keystone National Finance Authority would be governed by a board. The board will have the authority to issue conduit bonds for projects throughout the country. Pennsylvania will then receive fees for each bond issued wherever the project is located. 

• Link to the bill here: btCheck.cfm (state.pa.us)   

• SB 1056 (Argall) - Extends the authority of the Pennsylvania Treasury Department to invest or reinvest moneys of any fund pursuant to the Prudent Person Investment Standard from December 31, 2024, to December 31, 2035. Also, the bill implements the Keystone Saves Program, which would provide for a voluntary employee retirement savings program that would expand access to private sector individual retirement accounts to those who currently have no opportunity to save for retirement at their place of employment.
• • This bill received second consideration on the House floor on 10/8.
  • Link to the bill here: btCheck.cfm (state.pa.us)
• Rep. Joe Ciresi (D) and Sen. Carolyn Comitta (D) filed companion co-sponsorship memos on 10/9 which would aim to redirect Hotel Occupancy Tax revenue collected by booking agents on behalf of unlicensed hotels (such as Airbnbs and other homestays) to the Tourism Promotion Fund, which already receives money from booking agent accommodation fees.
  • • Ciresi memo: House Co-Sponsorship Memoranda - PA House of Representatives (state.pa.us)
    • Comitta memo: Senate Co-Sponsorship Memoranda - PA State Senate

• HB 126 (Bizzarro) - Allows for an individual to open a first-time homebuyer savings account with a financial institution. Provides contributions to the account by an account holder during each tax year may not exceed $5,000 for those who file an individual personal income tax return or $10,000 for joint account holders who file taxes together and contributions shall be tax-deductible. The contribution limit of an account will be $150,000. The first-time homebuyers’ program and the first-time homebuyers fund will be in the Office of State Treasury.
• This bill received second consideration on the Senate floor on 10/9.
• Link to the bill here: btCheck.cfm (state.pa.us)

PSTAP Supported Legislation!

• SB 1051 (Hutchinson) - Permits the Board of Finance and Revenue to consider late filed tax appeals from the DOR and creates a settlement process for taxpayers as an alternative to the formal and lengthy court appeals process. The bill also extends the appeal window for personal income tax issues from 60 days to 90 days; allows an appeal at 120 days if there is good cause; provides a settlement process, including the hiring of a settlement officer that would be used by the Board of Finance and Revenue; and revises the effective date to 90 days for the provisions relative to the Board of Finance and Revenue. SB 1051 also ensures all medical marijuana operators can take business deductions like all other legal businesses in the Commonwealth for the tax years beginning after December 31, 2023. The provisions relative to medical marijuana dispensaries take effect immediately.
• This bill passed the House on 10/9 by a vote of 202-0. The Senate also concurred in House amendments yesterday as well. The House still needs to sign the legislation, but once that is done it should be on its way to Governor Shapiro’s desk.
• Link to the bill here: btCheck.cfm (state.pa.us)