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Bill

HB 842

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, providing for deductions.

2025-2026 Regular Session Introduced by Missy Cerrato and 9 co-sponsors

HB 842 adds deductions to Pennsylvania's realty transfer tax, potentially reducing property transaction costs but decreasing government revenue from real estate sales.

Referred to Housing & Community Development
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WeVote Research Nonpartisan
Bill Summary · HB 842

Legislative bill overview

HB 842 modifies Pennsylvania's Tax Reform Code of 1971 to add new deductions to the realty transfer tax, which is a tax paid when real estate changes ownership. The bill's specific deductions are not detailed in the provided information, but it aims to reduce the tax burden on certain property transfers.

Why is this important

Realty transfer taxes directly affect housing affordability and real estate transaction costs for buyers, sellers, and developers. Changes to these deductions can influence property market activity, government revenue, and accessibility to homeownership, making this relevant to both individual Pennsylvanians and municipal budgets that depend on transfer tax revenue.

Potential points of contention

  • Revenue impact: New deductions reduce state and local government revenue from transfer taxes, which may require alternative funding sources or budget cuts
  • Equity concerns: Depending on which transfers qualify for deductions, the changes could disproportionately benefit certain groups (e.g., first-time homebuyers, investors, or specific property types) while shifting tax burden to others
  • Municipal dependency: Local governments in Pennsylvania often rely on transfer tax revenue; reduced collections could strain community services without clarity on state compensation mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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