An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, further providing for excluded transactions.
Summary
HB219 amends Pennsylvania’s Tax Reform Code to create a new exclusion from the realty transfer tax for certain transfers of real estate to members of the armed forces who are changing duty stations. Under the bill, the tax would not apply when a qualifying service member receives a transfer of real property and provides final orders showing that they will be stationed in Pennsylvania or a contiguous state.
The bill defines the eligible recipient as a member of the armed forces who will reside in Pennsylvania and be domiciled in a single-family residence transferred under the exclusion. The measure would take effect 60 days after enactment and would add a new clause to the list of excluded transactions under the realty transfer tax provisions.
Impact
HB219 would amend Section 1102-C.3 of the Tax Reform Code of 1971 by adding a new excluded transaction for qualifying transfers of real estate to service members relocating due to military orders. In practical terms, this would reduce or eliminate realty transfer tax liability on covered home transfers, affecting the Department of Revenue’s administration of the tax and providing a financial benefit to eligible military households purchasing or receiving a residence in Pennsylvania.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no documented debate or formal vote history to gauge support or opposition. Based on the bill’s narrow scope and its focus on military families, the measure appears to be framed as a targeted tax relief proposal rather than a broad tax policy change.
Contention
No specific points of contention are documented in the provided materials. Potential issues that could arise in discussion include the scope of eligibility, the requirement for final orders, the limitation to a single-family residence, and whether the exclusion should apply only when the service member will be stationed in Pennsylvania or also in a contiguous state. However, no member, committee, or stakeholder objections are recorded here.