HARRISBURG – Acting once again to close a legal loophole that has resulted in property tax increases for many Pennsylvania homeowners, the Senate Finance Committee approved legislation, Senate Bill 1258 sponsored by Senator James J. Rhoades ( R-29),  that would prevent school districts from raising property taxes on homeowners following the sale of a property.

The General Assembly passed a similar bill, Senate Bill 1247 sponsored by Rhoades, in July that would have protected taxpayers from all spot assessments based solely on a property's sale value, but the governor vetoed the legislation.

Senate Bill 1258, sponsored by Rhoades, and House Bill 1438, sponsored by Representative Seip (D-125), includes compromise language that would limit local taxing districts to appeal an assessment. Senate Bill 1258 and House Bill 1438 would limit local taxing districts to appeal an assessment only if a property is subdivided, improvements are added or removed, the property's market value changes by at least $200,000 or the additional revenue to be collected exceeds $5,000.

"The reassessment process can be costly for taxpayers who have already been hit hard by rising property taxes over the last decade," Rhoades said.  "Thousands of homeowners in my district have been victimized by this process, and we need to take immediate action to prevent this from happening in the future."

Senate Bill 1258, sponsored by Rhoades, would apply to counties of the Fourth through Eighth class, including all counties with populations under 210,000.  Fifty-one of the state's 67 counties would be covered under the bill.

House Bill 1439, sponsored by Seip, would apply to counties of the Third Class, including counties with populations under 499,999. Eleven counties in the Commonwealth would be covered by this legislation.

Both Senate Bill 1258 and House Bill 1439 now go to the full Senate for consideration.