Pennsylvania House Bill HB855

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/11/25
• Refer: 3/11/25
• Refer: 10/29/25

Caption

In general provisions relating to taxation and assessments, further providing for abatement of certain interest and penalty.

Summary

HB855 amends Pennsylvania’s local tax law to create an explicit process for taxpayers to request abatement of penalties or interest tied to an underpayment or tax owed to a local taxing authority. Under the bill, a taxpayer may file a petition asking the local taxing authority to forgive the penalty or interest, and the authority may grant relief if it believes the taxpayer acted in good faith, without negligence, and without intent to defraud. The taxpayer must also agree to pay the remaining balance owed without further appeal. The petition must be filed within 60 days of the first due date of the penalty or interest at issue, and the petition must explain the reasons for the requested abatement. The bill takes effect 60 days after enactment. In practical terms, the measure gives local governments a clearer statutory framework for considering penalty and interest relief while preserving their discretion to deny requests.

Impact

HB855 would amend Title 53 of the Pennsylvania Consolidated Statutes, specifically section 8428 governing abatement of certain interest and penalty, by adding a new subsection that authorizes petitions for abatement to local taxing authorities. It would affect taxpayers who owe local taxes or related penalties and interest, as well as municipalities and other local taxing bodies that administer those obligations. The bill does not change the underlying tax liability itself, but it creates a formal avenue for relief from penalty and interest in qualifying cases.

Sentiment

The available voting history suggests the bill was received favorably, with the House Local Government Committee voting 26-0 to re-refer the bill. There are no committee transcript excerpts provided, so there is no recorded debate to indicate opposition or concerns in the materials supplied. Overall, the unanimous committee vote points to broad support or at least no visible resistance at that stage.

Contention

No specific points of contention are documented in the provided transcripts, but the bill’s main policy choice is to give local taxing authorities discretion to abate penalties or interest only when they determine the taxpayer acted in good faith, without negligence, and without intent to defraud. Potential areas of concern could include how local authorities interpret those standards, whether the 60-day filing deadline is too short, and whether the requirement to pay the remaining balance without further appeal limits taxpayer recourse. However, no named stakeholders or formal objections appear in the supplied record.