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Pennsylvania, like other states in the nation, levies a real estate property tax against all real property located in the state—including residential, commercial, business, vacant land, and industrial property. There are some property classifications that are exempt from the Pennsylvania real estate tax, including charitable and educational institutions, places of worship and burial, and government properties.
However, the real estate tax in Pennsylvania is not levied by the state, but by the county government. Each homeowner's tax bill can be different, depending on the property's location within a school district, county, or municipality. If your neighbor across the street is in a different school district than you are, your tax bill and your neighbor's tax bill can differ widely.
Pennsylvania real estate taxes are calculated based on a millage rate, with one mill being equal to 1/1000 of a dollar. So homeowners pay $1.00 for every $1,000 in taxable value.
Tax reductions are offered to residents who use a property as their primary residence. This is called "homestead exclusion," and is offered in many other states as well. The homestead exclusion lowers the rate of tax the homeowner pays.
Pennsylvania also offers a property tax and rent rebate program, and those seniors and disabled tax-payers who qualify can be reimbursed up to $650 a year. This program is funded by the Pennsylvania lottery.
In 2006, a referendum was passed to enable school districts to lower real estate property taxes for homeowners, especially for senior citizens, through funding provided by gaming revenue. This program is scheduled to go into effect in 2009.
Pennsylvania is also considered a "tax deed" state, meaning that if real estate taxes are delinquent for a period of time as determined by state law, the property can be foreclosed. In Pennsylvania there is no redemption period, but special addendums do exist in certain counties. Property tax sales in Pennsylvania are usually scheduled in September, whereby investors can obtain good deals on properties.
As you can see, payment of property taxes is of the utmost importance for Pennsylvania property owners, as for any homeowner, and severe penalties can result if real estate taxes go unpaid.
Sources:
http://pittsburgh.about.com/od/taxes/p/property_tax.htm
http://www.bankrate.com/brm/itax.edit/state/profiles/state_tax_pa.asp
http://www.pde.state.pa.us/protax/cwp/view.asp?a=3&q=107873
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