Pennsylvania's $32M Property Tax Relief: What It Means for Delaware County School Districts
Homeowners in Delaware County, PA may soon experience some financial relief, thanks to a recent decision by the state of Pennsylvania to allocate $32 million to ease the burden of property taxes in select school districts. This funding, known as the tax equity supplement, is intended to help school districts that have been grappling with high property taxes relative to the wealth of their residents. Delaware County is among the key areas that stand to benefit, offering much-needed support to both homeowners and school districts alike.
What Is the Tax Equity Supplement?
The tax equity supplement is part of Pennsylvania’s 2024-2025 budget, aimed at addressing longstanding inequities in the state’s education funding system. This supplement is particularly targeted at school districts with high property tax rates compared to the income levels of their residents. It comes in the wake of a court ruling declaring Pennsylvania’s current school funding formula unconstitutional, making this initiative part of the state's response to calls for fairer educational funding.
How Delaware County Benefits:
In Delco, several school districts are expected to receive this supplemental funding to ease the property tax burden on homeowners who have been struggling with rising costs in recent years. For homeowners, this may translate into lower annual property tax bills (don’t hold your breath) or a slower rate of increase in taxes. Residents of these districts, particularly those on fixed incomes such as seniors, will feel the greatest benefit, as property taxes can often be a significant financial strain. Additionally, the influx of state funding is expected to improve educational resources, ensuring schools have the means to provide quality education without relying as heavily on local tax revenue.
How much are districts getting?
a. Interboro - $316,784.10
b. Wallingford-Swarthmore - $368,138.04
c. Upper Darby - $781,551.05
d. Ridley - $962,797.88
e. William Penn - $1,215,861.59
f. Chichester - $1,470,470.47
g. Southeast Delco - $1,622,461.66
Implications for Homeowners and the Real Estate Market:
Lower taxes make homes more affordable. Affordability is a big stressor for would-be home buyers in Delco.
Looking Forward:
While the tax supplement is a welcome development, it is only the beginning of the reforms as Harrisburg is looking to address Pennsylvania’s educational funding disparities.
I recommend talking to your state rep and/or state senator about the needs of your district.
https://www.spotlightpa.org/news/2024/08/pennsylvania-property-tax-school-districts-relief-budget-equity-payment/