Construction tax abatement legislation passes committee

HARRISBURG, PA — The Senate Finance Committee has passed legislation to amend the New Home Construction Local Tax Abatement Act (Act 202) to provide property owners six months from the date of occupancy to submit an application for the exemption.

The Act currently allows a local taxing authority, through the enactment of an ordinance, to grant a property tax exemption to the owner based on the assessed value of improvements to existing homes or new construction. Act 202 requires that the application for the property tax exemption be filed between the time of the builder’s and occupancy permits are issued. The application must be filed no more than two years after the builder’s permit is received.

Unfortunately, in situations where developers are constructing multiple homes simultaneously and then selling the homes after construction has been completed, the time period within which a new homeowner can file for the exemption has either partially or fully expired.

The legislation, Senate Bill 778, was introduced by Senator Wayne Fontana (D-Allegheny). Fontana is a REALTOR® and member of the REALTORS® Association of Metropolitan Pittsburgh.