Property tax and rent rebate boost meandering through legislature

By Christina Lengyel | The Center Square contributor

HARRISBURG, PA – Gov. Josh Shapiro’s key proposal expanding the state’s property tax and rent rebate program meanders along as lawmakers grapple with the projected costs.

House Bill 1100 advanced to the lower chamber’s Appropriations Committee after Republicans failed to amend the proposal to decouple future rebate increases to the rate of inflation.

Doing so, they argue, makes the proposal more affordable in the face of uncertain revenues. Still, they object to enhancing the benefit at the potential cost of more broad property tax relief.

The legislation fleshes out Shapiro’s budget proposal to increase the income cap and rebate amounts for the program after nearly two decades of stagnation. The primary beneficiaries of this bill are seniors – a rapidly expanding segment of the population – and those living with disabilities. In order to receive the rebate, residents need to be recipients of SSI or SSD benefits.

While the rebate has been a “godsend” to seniors like Kelly Minns, a local volunteer who appeared at a press conference in support of the bill in Erie earlier this month, the letter of the law hasn’t been updated since it was first passed nearly 17 years ago.

This means that as inflation and social security payments have risen, thousands have been disqualified from receiving the rebate – even though they are stretching their dollars further.

“What I find discouraging is that the need continues to grow for thousands of people, but the funds are locked away because of an outdated threshold,” said Rep. Patty Kim, D-Dauphin, a co-sponsor of the bill, during a House Finance Committee hearing earlier this month.

Rep. Carol Hill-Evans, D-York, another of the bill’s sponsors, said of serving her constituents in the program, that forces beyond the control of recipients leave too many unable to make ends meet.

“We’ve had to turn away way too many of our regular low-income or retired renters who have lost out due to social security COLA raises or having to work into their late 70s and 80s through special employment programs to cover normal costs of living,” she said.

The Department of Aging says the extra cash will not only help to pay for essentials, but also keep seniors living at home for longer. The rebate often covers costs that benefit whole families who are pulling together to care for both children and the elderly, a circumstance state agencies find themselves grappling with more and more.

Rep, Izzy Smith-Wade-El, D-Lancaster, spoke about a constituent he met who used the rebate to buy Christmas gifts her grandchildren wouldn’t otherwise receive. She had been disqualified from the program due to an increase in her pension.

“Like many of our multigenerational families, she is stepping in for parents, and it really feels like the very least that we could do to make life easier for Barbara and for her grandkids,” he said.

The new bill increases the maximum rebate from $650 to $1,000 and raises the income cap to $45,000, tying it to inflation. This will allow 175,000 Pennsylvanians to become eligible for the bill and nearly double the rebate many are already receiving, according to the administration.

Funding for the program comes from the Pennsylvania Lottery, and some lawmakers are skeptical about the long-term affordability of the plan, seeing annual budget increases on the horizon along with inflation.

House Appropriations Committee Minority Chairman Seth Grove, R-York, said Republicans want to help senior homeowners too, but “literally cannot afford” to do it the governor’s way.

“We get his arguments – it has been a depreciating amount,” he said. “We look forward to working with him on a property tax rebate program, but not what he introduced, because you can’t financially do both – and I think we should be giving it to everybody.”

It’s unclear how quickly the legislation will advance to a final vote on the House floor, though a bigger hurdle will be its prospects in the Republican-controlled Senate. The annual budget is due June 30, meaning any inaction on the proposal could delay progress until session resumes in the fall.