Tuesday night, Pennsylvania voters approved the homestead expansion that could lead to lowering or eliminating property tax.

What this approval means is that Pennsylvania voters have given lawmakers the power to amend the state constitution in order to lower or eliminate property tax.

This does not mean that voters have eliminated property tax – state lawmakers would still have to find a way to make it work.

Without the revenues of property tax, they would have to find away to make up those funds. This could possibly mean a rise in sales or income tax to make it work.

WTAJ spoke with Senator Bob Casey about what this would mean for Pennsylvanians and a tax bill on the federal level. He says that while residents could feel relief in a lower property tax, changes to taxes on the federal level could erase that relief. Casey says that this is something he will have to take into account as he and his colleagues work through future tax bills.

Casey explained, “A lot of that could undermined, or badly undermined. If the state and local tax reduction is taking away with a federal tax bill.  The brings back the possibility of double taxation.” 

The referendum Tuesday that Pennsylvanian voters approved doesn’t bring about immediate change. There are many steps ahead before we would see an elimination of property taxes.