Petrarca Measure to Help Land Banks Rehabilitate Blighted Properties Passes
Legislation Update
July 13, 2016
HARRISBURG, July 13 – As the Pennsylvania House of Representatives cast the final vote on the tax code bill, positioning it to become law, so too did the House vote on exempting land banks from the state realty transfer tax.
House Bill 1198, which passed today, contains Rep. Joseph Petrarca’s proposal to exempt from the state portion of the realty transfer tax all real estate transactions involving a land bank.
Land banks are entities that focus on converting vacant, abandoned, tax-delinquent and foreclosed properties into productive use. When the law was passed in 2012, Petrarca said the intent was to exempt land banks from all state and local taxes, including the realty transfer tax. However, the Revenue Department continues to assess the tax on land banks for certain transactions.
“We want to encourage redevelopment of blighted properties in our communities, not hinder it, which is what the assessment of the realty transfer tax does. My legislation was designed to correct that oversight, and I am pleased this proposal to eliminate collection of the state realty transfer tax has received support in the General Assembly,” said Petrarca, D-Westmoreland/Armstrong/Indiana.
“Today’s action is progress for community land banks, but I will continue to work to address the elimination of the local realty transfer tax, as well.”
Petrarca said that land banks do good work in communities. For example, in his district, the Westmoreland County Land Bank actively pursues opportunities to return blighted properties to the tax rolls, with both commercial and housing developments. In fact, it became the first land bank in the commonwealth to sell a formerly vacant and blighted property to a new owner.
Recently, the Westmoreland County Land Bank acquired seven properties from a family estate and it plans to market the parcels as a multi-family housing complex for moderate income families in Latrobe.
With House and Senate approval, the bill now goes to the governor where it is expected to become law.
Source: Office of Representative Joseph Petrarca
Additional Resource:
HB 1198 (full text)
