Laughlin: Property Tax/Rent Rebate Program expands safety net for Pa.'s most vulnerable

The leaves changing colors and the air growing cooler might still be a little way off on the calendar, but one thing is already here: it's that time of the year when Pennsylvanians are faced with the annual task of paying their school real estate taxes.

For some, this financial obligation, as well as the payment of other taxes throughout the year — or even the payment of one's rent, which can go up due to property taxes — can be a significant burden. That burden is acutely felt by those on fixed incomes or facing economic hardships.

However, in Pennsylvania, we have a long-running program that can help our most vulnerable residents navigate such difficult financial waters: the Property Tax/Rent Rebate (PTRR) Program.

Created in 1971, the PTRR program has been a lifeline for countless Pennsylvanians, offering financial assistance to homeowners and renters who find themselves grappling with the ever-increasing cost of property taxes. The program, supported by the Pennsylvania Lottery and supplied with funding derived from slot machine gaming, has delivered more than $8 billion in much-needed relief by offering rebates to eligible individuals, ultimately helping them keep their homes and maintain financial stability. Eligible Pennsylvanians age 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older have benefited immensely from the program.

However, since 2009, the number of people helped by the program has fallen every year because 2006 was the last time the program's income eligibility limits were increased…until now.

The income eligibility situation was addressed this summer with the General Assembly's passage and the enactment of legislation that increases those income limits.

Starting in 2024, the household income limit for property tax rebates will increase to $45,000, up from the current $35,000 limit. The household income limit for rent rebates will also increase to $45,000, up from $15,000. For those who receive Social Security income, half of that is excluded when calculating household income.

To future-proof the eligibility situation, starting in 2025, the program's income limits will be adjusted annually by the Pennsylvania Secretary of Revenue based on the Consumer Price Index for All Urban Consumers (CPI).

In addition to the income limit expansion, the new law increases the maximum standard rebate from $650 to $1,000. For those just below the new $45,000 household income limit, the minimum rebate has also risen from $250 to $380, though before the income limit change, anyone with a household income in excess of $35,000 was ineligible for a rebate.

It's estimated these changes will allow nearly 175,000 additional Pennsylvanians to qualify for a property tax or rent rebate. At the same time, roughly 86% of the 430,000 claimants who already qualify are expected to see their rebates increase.

The importance of the PTRR program cannot be overstated. It provides financial relief for vulnerable populations, which is of particular importance since Pennsylvania has a growing number of senior citizens. It helps to prevent homelessness and strengthens communities by safeguarding homeownership. And it ensures a reliable stream of education and government funding, helping residents remain in their homes and meet their tax obligations.

We live in uncertain economic times, and in such times, programs like the PTRR program become even more critical. As we all struggle with inflation and high prices, it's essential for our commonwealth to support its residents and ensure that homeownership remains attainable and sustainable.

If you or someone you know is struggling with the burden of property taxes or rent, I urge you to explore the benefits of the Pennsylvania Property Tax/Rent Rebate Program. By expanding this program and reaffirming our commitment to its important purpose, we ensure that Pennsylvanians can continue living in their homes with dignity and financial stability.

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

This program and its expansion are testaments to the state's commitment to its citizens, providing a much-needed safety net during challenging times and helping to build stronger, more resilient communities across Pennsylvania.

Sen. Dan Laughlin represents the 49th Senatorial District, covering nearly all of Erie County.

This article originally appeared on Erie Times-News: More people now eligible for Pa. property tax relief, rent rebates