Pennsylvania House Bill HB310

Pennsylvania 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25

Caption

A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, providing for expiration of authority to levy or collect real property taxes.

Summary

HB310 is a proposed constitutional amendment that would end school districts’ authority to levy real property taxes after June 30, 2029. The bill would still allow school districts to collect property taxes that were already levied before that date, but it would prohibit any new school property tax levies after the cutoff. It also directs the General Assembly to provide annual state support to each school district at least equal to the amount of property tax revenue collected in fiscal year 2028-2029, minus legally obligated debt service for that year. To replace the lost local property tax revenue, the amendment contemplates state and local revenue sources such as a state sales tax, a state income tax, a local income tax, and a local earned income/net profits tax. It further bars the General Assembly from authorizing any real property tax by general, local, or special law, and creates a dedicated Stabilization of Education Fund in the State Treasury for certain tax proceeds to support school districts. Because this is a constitutional amendment, it would need to pass the General Assembly twice and then be submitted to voters for approval.

Impact

If adopted, HB310 would fundamentally change Pennsylvania school finance by eliminating school districts’ future authority to tax real property and shifting the funding burden to state-level and alternative local tax sources. It would amend the state constitution, override existing school property tax authority after the effective cutoff, and require the legislature to establish a new annual funding mechanism for school districts. The proposal would directly affect school districts, homeowners and other property owners, taxpayers, and the state treasury, while also implicating existing school district debt obligations and the structure of education funding law.

Sentiment

There is no recorded committee transcript or vote history in the provided materials, so no formal floor or committee sentiment can be measured from the record here. Based on the bill’s subject matter, the proposal appears to be a major tax reform measure aimed at relieving property-tax burdens and restructuring school funding, which typically draws strong interest from both supporters of property tax elimination and opponents concerned about revenue stability and state fiscal impact.

Contention

The central point of contention is the elimination of school district real property taxes and the replacement of that revenue with state and other tax sources. Supporters are likely to favor the bill for reducing property-tax burdens and creating a more centralized funding model for education, while opponents may object to the loss of local taxing authority, uncertainty over replacement revenues, and the potential need for higher sales or income taxes. Additional concerns include how the state would guarantee annual funding, how debt service would be handled, and whether the proposed Stabilization of Education Fund would be sufficient and protected from diversion.