LOCAL TAXES

The PA Chamber supports real, effective changes to the nation’s tax structure that will make it more conducive to investment and job growth. Our communications to Capitol Hill in Washington, D.C. express the need to streamline the tax code, provide predictability and uniformity to businesses of all sizes and across all industry sectors, and incentivize economic growth through tax reform.

The Commonwealth’s local taxation system must produce stable revenues and promote uniformity, and apply consistency in its treatment of employers. The Pennsylvania Chamber supports local tax policy that promotes a competitive business climate and that adapts with the ever-evolving dynamics of the modern workplace, accommodating trends like remote working. Efforts at the state level should also encourage local taxing authorities to continually pursue these objectives. The mosaic of local governing bodies, which include counties, municipalities, and school districts, and the numerous ways and degrees each tax business underscores the need for reform. Short of comprehensive local government consolidations, gross receipts, and the various nuisance taxes should give way to a simpler, more predictable tax base modeled after the state income tax base.

 

Counties address the assessment of property values in a variety of ways. The PA Chamber supports assessment reform that provides clear, consistent, and standardized assessment standards, including periodic, mandatory reassessment. One particular area of concern is local taxing authorities using appeals to bypass the prohibition on spot property assessments. This practice often targets businesses which can experience unpredictable property tax increases as a result. The PA Chamber supports prohibiting spot appeals except under specific, legitimate circumstances.

 

High property taxes can impede employer growth and the PA Chamber supports efforts to reduce property taxes by addressing cost-drivers, and placing reasonable limits on local governments’ ability to create, expand or raise taxes or fees.

 

Approved by the Board of Directors on April 25, 2025