Property Ownership
Pennsylvania's 'Homestead Exemption' as enacted locally under Act 50 provides:
AA complete exemption from property taxes for all Pennsylvania homeowners
BA reduction in assessed value for owner-occupied primary residences that reduces the school property tax burden✓ Correct
CAn exemption from the Realty Transfer Tax for first-time buyers in qualifying counties
DA federal income tax deduction for mortgage interest on Pennsylvania primary residences
Explanation
Pennsylvania's Homestead/Farmstead Exclusion (Act 50 and Act 72) allows school districts and other taxing bodies to reduce the assessed value of owner-occupied primary residences and qualifying farmstead buildings, reducing the property tax burden on homeowners. The exclusion amount varies by school district based on available gaming revenue or tax base.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
State-Specific Concepts
Homestead ExemptionTransfer Tax
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