Here's how Gov. Shapiro's property tax and rent rebate would help vulnerable Pa. citizens

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For more than 50 years, Pennsylvania has held the unique distinction of being the only state in the nation where proceeds from its state lottery are directed solely to programs that benefit older adults. This partnership between the Pennsylvania Lottery and our commonwealth's seniors has generated nearly $34 billion in funding that has provided critical support to people living in all of Pennsylvania's 67 counties.

Among the many vital programs that the lottery funds, the Property Tax/Rent Rebate (PT/RR) program is one of the most impactful. Since its inception in 1971, this program has delivered more than $8 billion in property tax and rent relief to some of Pennsylvania's most vulnerable residents.

The program benefits Pennsylvanians 65 and older, widows and widowers 50 and older, and Pennsylvanians with disabilities who are 18 and older. As Governor Josh Shapiro has said many times, the rebates that are delivered annually through this program provide a lifeline for hundreds of thousands of Pennsylvanians, helping many of them to age in the comfort of their homes.

Pennsylvania Governor Josh Shapiro, center left, speaks with Tim Donlin, 76, during a visit to the Erie West Senior Center to discuss property tax and rent rebate programs for seniors on May 4, 2023.
Pennsylvania Governor Josh Shapiro, center left, speaks with Tim Donlin, 76, during a visit to the Erie West Senior Center to discuss property tax and rent rebate programs for seniors on May 4, 2023.

Unfortunately, the program is in desperate need of updating. The income limits — $35,000 for homeowners and $15,000 for renters — have not been raised since 2006. That means that thousands of seniors continue to be priced out of the program every year due to economic factors beyond their control, such as inflation. In fact, at its peak, the program at one time delivered roughly 605,000 rebates in a single year. We've now reached a point where we anticipate that fewer than 430,000 rebates will be distributed for the most recent claim year. The Shapiro Administration is eager to work with the General Assembly to address this longstanding problem.

That's why the governor is calling for a major expansion of the PT/RR program in his 2023-2024 proposed budget. Under the Gov. Shapiro's proposal, the maximum standard rebate would increase from $650 to $1,000. Meanwhile, the income limits for renters and homeowners would be made equal and both increase to $45,000. Those income limits would also be tied to the cost of living moving forward, which means the people who receive a rebate won't have to worry about losing their eligibility through no fault of their own in the years to come.

Ultimately, the governor's proposal would result in nearly 175,000 additional Pennsylvanians qualifying for a property tax or rent rebate. At the same time, we estimate that 86% of the 430,000 claimants who already qualify will see their rebates increase.

This is incredibly meaningful change for a program that has a long history of delivering essential support to people in need. We both know from our experience working with Pennsylvania's seniors how much of a game changer this will be for the people who count on their rebate each year. Please join us in supporting the Gov. Shapiro's proposal to expand this program and deliver results for the people who truly need it in communities across the commonwealth.

Patrick Browne is the acting secretary of the Pennsylvania Department of Revenue, which administers the Property Tax/Rent Rebate program and operates the Pennsylvania Lottery. Jason Kavulich is the secretary of the Pennsylvania Department of Aging, which works to ensure that older Pennsylvanians have access to quality services and support that help them age and live well. 

This article originally appeared on Erie Times-News: Lawmakers should support Shapiro's property tax, rent rebate expansion