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Ways & Means reviews Act 73 homestead exemption, JFO flags $35 million FY25 cost estimate
Summary
Joint Fiscal Office staff told the Ways & Means committee that Act 73 would replace the current property tax credit with a tiered homestead exemption (indexed to inflation, capped at $425,000), and that JFO modeling using FY2025 data estimated roughly $35 million more net cost in FY2025 compared with current law.
Julia Richter of the Joint Fiscal Office briefed the Ways & Means committee on Act 73’s new homestead exemption, saying the statute repeals the existing property tax credit and replaces it with an income‑sensitive exemption tied to house‑site value.
“Act 73 repeals the property tax credit in its current form and establishes the homestead exemption as the new form of income sensitivity,” Richter said. She described a system that exempts a portion of a claimant’s house‑site value only against the first $425,000 (adjusted annually for inflation), with the exemption percentage stepping down as household income rises.
Richter gave…
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