The issue

Pennsylvania's Local Taxpayers Bill of Rights only gives local taxing authorities the ability to abate interest and penalties in limited instances, such as when a delay is caused by the taxing authority itself. This leaves no clear remedy for those who may miss a filing deadline due to serious illness or an unavoidable disruption. Both the Commonwealth of Pennsylvania and the City of Philadelphia have broader authority to abate interest and penalties than local taxing authorities.

Our position

The PICPA backs two legislative proposals seeking to expand the abatement authority of local taxing authorities and to require the Department of Revenue to provide taxpayers with a detailed explanation of assessments or adjustments.

House Bill 855, sponsored by Rep. Joe Webster (D-Montgomery), would amend the Local Taxpayers Bill of Rights to grant local taxing authorities the ability to abate interest or penalty in instances when a taxpayer, acting in good faith, without negligence and with no intent to defraud, agrees to pay the remaining balance owed without further appeal. The intent is to assist those who inadvertently fail to file a return timely or pay the wrong amount of tax due.

House Bill 856, also sponsored by Webster, would amend the state Tax Reform Code of 1971 to require that notices of assessment or adjustment contain sufficient information so that taxpayers understand what is being adjusted and the basis for that adjustment. It would also require the notices to be sent before the period to appeal to the Board of Appeals begins to run. The intent is to provide taxpayers with enough information to be able to make an informed decision on whether to file an appeal. The proposal applies to sales and use tax, personal income tax, and corporate tax assessments and adjustments. In addition, the bill will codify when the six-month refund period begins to run in instances where the Department of Revenue reduces an overpayment to satisfy an adjustment of tax.

Both pieces of legislation would help ensure that tax enforcement remains fair, especially for taxpayers who are trying to do the right thing under difficult circumstances.

Status: Both bills are pending in the House Finance Committee.

Reviewed June 2026