HB 2885

Overview

This bill amends Title 16 (Counties) of the Pennsylvania Consolidated Statutes to establish new limitations on tax levies for general county purposes in counties classified as second class A through eighth class. The legislation restricts the annual increase in the tax rate for these jurisdictions, effective for fiscal years beginning on or after January 1, 2028. Under the proposed changes, county commissioners are prohibited from increasing the tax rate by more than the lesser of four percent or the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the preceding calendar year, unless inflation is negative.

Key Provisions

• County commissioners may not increase the general county tax rate beyond the lesser of a 4% increase or the prior year's CPI-U increase without voter approval.
• Counties seeking to exceed these statutory limits must hold a referendum at the election immediately preceding the fiscal year in which the increase would take effect.
• The resolution authorizing the referendum must be adopted no later than 60 days before the election, and the ballot question must specify the proposed percentage increase and the resulting millage rate.
• A nonlegal interpretative statement accompanying the referendum must identify the purposes for the additional revenue and the consequences of disapproval by the electorate.
• If a referendum is not approved, the county is legally barred from increasing the tax rate beyond the limitation established in paragraph (4).
• The new tax levy limitations apply to taxes levied for fiscal years commencing on or after January 1, 2028.