Pennsylvania Moves to Close Tax Loopholes and Tackle Blight with New Bill

CapitolCredit: Commonwealth Media Services

HARRISBURG, PA — The Pennsylvania House of Representatives has passed legislation aimed at helping local governments address community blight and strengthen revitalization efforts. House Bill 316, introduced by state Rep. Dan Williams, was approved on Tuesday, April 22, and now heads to the state Senate for consideration.

The bill closes a loophole in existing laws that has allowed individuals with tax delinquencies to obtain permits using limited liability companies (LLCs). Under current regulations, municipalities can deny permits to individuals delinquent on taxes, but they are often required to approve permits for LLCs or corporations, even if the principal owners of those entities are in arrears.

“Every struggling community in Pennsylvania wants to fight blight and revitalize their neighborhoods. That revitalization includes ensuring there are safe, quality buildings owned by a reliable tax base,” Williams stated. He added, “It’s time we stop bad actors from exploiting this gap in the law and give local governments the ability to ensure revitalization that will benefit the community for years to come.”

House Bill 316 empowers municipalities to deny permits not only to individuals but also to LLCs or corporations with tax-delinquent owners. This measure is seen as a critical tool for local governments striving to foster community improvement while ensuring fairness and accountability in property development.

Approval of this bill in the House marks an important step in the legislative process aimed at tackling systemic issues related to blight. The legislation’s next stage in the state Senate will determine whether it becomes law, signaling progress toward long-term community revitalization efforts.

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