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How the Homestead Tax works

Dear Editor:

An article published in the Times News on June 19, 2025, entitled “Panther OKs budget with slight increase,” quotes outgoing business manager Jesse Walck as saying, “the tax increase was needed to offset Homestead Act exemptions and keep district revenues level.”

I want to clarify how the Homestead Act exemptions work, what impact increases in the Homestead Act exemptions have on homeowners and school districts, and the recent history of state funding for the Panther Valley School District (PVSD).

For the upcoming 2025-26 school year, the amount of the state property tax reduction allocation for Homestead Act exemptions to PVSD totals $1.2 million which is up from the $1.1 million the school district received in 2024-25.

Therefore, every qualified homeowner will see an increase in the amount of the homestead exemption on their tax bill.

However, PVSD wants you to think that they need to increase property taxes due to the increased amount of the state property tax reduction allocation. Mr. Walck has this completely backwards.

When the amount of the state property tax reduction allocation increases, it has no impact on the amount of revenues the school district receives. It is just a matter of who is paying the property tax bill of the school district – the Commonwealth or the homeowners.

As elected officials and representatives of the school district, we have a responsibility to speak honestly and clearly about school funding. Misleading the public on this issue is unacceptable, especially when property taxes remain a significant burden on working class families in the Panther Valley area.

I’ve always stood up for the districts I represent. From 2013-14 to 2023-24, total state funding for PVSD increased by 85%, an average annual increase of 8.5%. In 2024-25 alone, state funding for PVSD (including basic education, special education and the Ready to Learn Block Grant) increased by 19%.

It’s time for an honest conversation about school funding, one that puts facts first and respects the financial pressures our residents face.

State Rep. Doyle Heffley

R-Carbon