Feb. 07, 2023
HARRISBURG – In an effort to help first-time homebuyers in Pennsylvania, Rep. Thomas Kutz (R-Cumberland) is gathering support for legislation that would reduce the tax burden for new homeowners by creating an exemption from paying the realty transfer tax.
Kutz recently circulated a co-sponsorship memo to share the proposal with his fellow members of the House.
The bill as drafted by Kutz would exclude first-time homebuyers from paying the realty transfer tax, potentially saving qualifying homebuyers several thousand dollars at the time of closing. Kutz hopes the waiver would incentivize homeownership and stimulate the economy.
“Home ownership is a big step for young families. Removing an obstacle to homebuying, no matter how small it may seem, will encourage people to stay in Pennsylvania and allow first-time homebuyers to plant their roots here and begin building equity in their homes,” Kutz said. “Home ownership remains one of the best ways to build wealth, and paying an extra tax for the privilege of owning a home on top of already-high closing costs is just one more barrier that prevents young people and families from being financially secure and contributing to our local economies.”
The realty transfer tax in Pennsylvania is a minimum of 1% on the value of real estate when that real estate changes ownership. It is paid to the county’s Recorder of Deeds.
Kutz plans to introduce the bill as soon as the Legislative Reference Bureau begins filing for the 2023-24 House Session.
Representative Thomas Kutz
Pennsylvania House of Representatives
Media Contact: Jennifer Fitch