Budget & Taxes

HB 325 amends Pennsylvania's Taxpayer Relief Act to clarify how school districts must present tax relief information to property owners. It adds a definition of "conspicuous" requiring notices to use larger text, contrasting colors, or special formatting that a reasonable person would notice. The bill mandates that school districts include a specific, conspicuous notice with tax bills for homestead and farmstead property owners, explaining that their tax reduction comes from casino gaming revenue (State Gaming Fund) under state law, not from the school district's actions. This affects all Pennsylvania property owners eligible for homestead/farmstead exclusions and the school districts that issue their tax bills, effective for taxable years after December 31, 2025.

HB 1126 amends Pennsylvania's tax code to create two new provisions: (1) a tax deduction for fitness facilities that provide free or discounted memberships to active-duty military personnel, National Guard members, or reservists, limited to the regular membership fee and not reducing taxable income below zero; and (2) a personal health investment tax credit of up to $600 per year for eligible military members to cover qualified fitness expenses like gym memberships or exercise equipment. The deduction for facilities is only available if they did not claim the same expense for federal taxes. The credit applies to Pennsylvania resident individuals who qualify as active-duty military, National Guard, or reserve members under state definitions. These changes directly affect fitness businesses and military-affiliated taxpayers in Pennsylvania.

HB 1001 exempts compensation received from the Federal or State Government or Jet Rescue Air Ambulance (or its agent) related to the Med Jets Flight 056 crash (January 31, 2025, in Philadelphia) from Pennsylvania personal income tax. This bill directly affects individuals who received such payments due to the crash, making that compensation non-taxable under the state's tax code. The key provision adds a specific exception to the Tax Reform Code of 1971, removing this income from taxable categories. The exemption applies only to payments tied to this single, specific incident.

This bill allows Pennsylvania cities to levy an annual property tax of up to one-tenth of a cent (0.5 mill) specifically to fund local ambulance, rescue, and emergency services. Cities may use up to half the revenue from this tax for staff salaries and benefits, with council approval required to exceed this limit (though a resolution can waive the cap). If a city proposes a tax rate above 0.5 mill, it must submit the question to voters at the next municipal election occurring at least 60 days after the proposal. The law directly affects cities seeking to finance emergency services through property tax without voter approval for rates at or below 0.5 mill.