More totalitarianism from our moral and intellectual superiors in Harrisburg.

Hey, Pennsylvanians! Think your legislators are working to help you by eliminating the local school property tax? You should know better by now.

Ever hear of the Realty Transfer Tax? It may be going from 1% (fifth highest in the nation) to 3%. The vote is scheduled for Monday November 21.

"But Fyodor", you whimper, "I'm not buying or selling a house, so what do I care?"

Childish imbecile! Think of the cost to businesses and then imagine all of them passing on this tax increase to consumers like you!

The realty transfer tax is a state and local tax assessed on real property when ownership of the property is exchanged between parties. All types of real property, including residential, commercial, and agricultural, are subject to the realty transfer tax. Pennsylvania currently assesses a 1% statewide transfer tax, which is the fifth highest tax rate in the nation.

In addition to the 1% statewide realty transfer tax, local communities are also capable of assessing up to an additional 1%. The exceptions to this rule are home rule counties and municipalities as they may levy above 1% in local transfer taxes. Currently, the realty transfer tax rate in the cities of Philadelphia and Pittsburgh is a combined 4% including state, local, and school district tax.

While proposing to increase the statewide RTT rate to 3%, the Caucus plan also provides that school districts in second, third and fourth class counties would continue to have the power to levy a local RTT at a rate equal to or less than the state RTT rate. This means that if the state RTT rate is raised to 3%, then second, third and fourth class counties would be able to raise their local RTT rates to 3%, thereby producing a 6% total RTT.
(Thanks to PARealtors.org for the heads up.)