While Pennsylvania state law provides for local tax abatements for interest and penalties in limited circumstances, such as the abatement of interest attributable to an error or delay by a local taxing authority, this current statute does not consider other scenarios that may cause a taxpayer to unknowingly or uncontrollably file their taxes after a deadline. Some municipalities, such as Philadelphia, have enacted local ordinances that permit their local taxing authority to abate interest and penalties upon a petition by a taxpayer who had acted in good faith, without negligence, and had no intent to defraud the local taxing authority; however, this is not consistent statewide.
 
My legislation would amend Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes to make this a uniform policy across Pennsylvania, making the appeal process less confusing and fairer for our taxpayers. As some municipalities have not yet enacted such an ordinance, these local taxing authorities may be unable to unable to assist taxpayers in extenuating circumstances by abating interest and penalties that accrued as a result. The expansion of this ability to all local taxing authorities would help individuals and small businesses receive more timely and suitable resolutions to tax petitions, as these groups are less likely to appeal smaller assessments and, as part of a settlement, receive an abatement of penalties.
 
Please consider co-sponsoring this legislation to give local taxing authorities additional tools to make discretionary decisions on local tax interest and penalties.
 
 

Statutes/Laws affected:
Printer's No. 0893: 53-8428