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PRIOR PRINTER'S NO. 2587 PRINTER'S NO. 3318
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No. 368
Session of
2025
INTRODUCED BY WEBSTER, HILL-EVANS, FREEMAN, RIVERA AND SANCHEZ,
NOVEMBER 7, 2025
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 29, 2026
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
conduct a comprehensive study of changes in commercial
property values in this Commonwealth, assess the fiscal
impact on local governments and school districts and make
recommendations.
WHEREAS, Communities across the United States are
experiencing historically low office occupancy, and the national
office vacancy rate reached an all-time high of 20.7% in 2025,
driven in part by increased remote work and gradual return-to-
office policies; and
WHEREAS, Elevated vacancy rates can depress commercial
property values, which may reduce assessed values and the
property taxes paid by owners; and
WHEREAS, Declining commercial values and the resulting
erosion of property tax revenue can strain municipal budgets,
with some jurisdictions projecting shortfalls on the order of $1
billion or more over the next several years due to falling
commercial property tax receipts; and
WHEREAS, Reduced property tax revenue poses a substantial
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risk to local education budgets, as approximately 55% of public
school funding in this Commonwealth comes from local sources,
and roughly 44¢ of every school dollar is derived from local
property taxes; and
WHEREAS, Persistent revenue declines can impair the ability
of school districts to fund programs and services, with
disproportionate effects on middle-income and low-income
communities; and
WHEREAS, The fiscal pressures associated with reduced
commercial property tax revenue may shift costs to residents if
school districts or municipalities must raise taxes to sustain
essential services; therefore be it
RESOLVED, That the House of Representatives direct the
Legislative Budget and Finance Committee to conduct a
comprehensive study of changes in commercial property values in
this Commonwealth, assess the fiscal impact on local governments
and school districts and make ISSUE ITS FINDINGS AND
recommendations; and be it further
RESOLVED, That the study, at a minimum, do all of the
following:
(1) Examine the current state of commercial property
values in this Commonwealth, including recent trends in
valuation, assessment and appeals.
(2) Identify Commonwealth-level mechanisms CURRENT
COMMONWEALTH STATUTES, REGULATIONS, PROGRAMS, POLICIES AND
PROCEDURES that address local budget shortfalls attributable
to declining commercial property values and evaluate their
effectiveness, AND PROVIDE RECOMMENDATIONS.
(3) Provide best-practice recommendations for counties
and school districts on assessment practices and tools to
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minimize volatility in MUNICIPAL AND SCHOOL district budgets;
and be it further
RESOLVED, That the Legislative Budget and Finance Committee
be authorized to request from Commonwealth agencies, departments
and municipalities any data or information not protected from
public disclosure by Federal or State law that is necessary to
conduct the study; and be it further
RESOLVED, That the Legislative Budget and Finance Committee,
within one year after the adoption of this resolution, transmit
a report of its findings and recommendations to the General
Assembly and post the report on the Legislative Budget and
Finance Committee's publicly accessible Internet website.
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