HR 368 — 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.

PRINTER'S NO.    2587

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



           HOUSE RESOLUTION
              No. 368
                                              Session of
                                                2025

     INTRODUCED BY WEBSTER, HILL-EVANS, FREEMAN, RIVERA AND SANCHEZ,
        NOVEMBER 7, 2025

     REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, NOVEMBER 12, 2025


                               A RESOLUTION
 1   Directing the Legislative Budget and Finance Committee to
 2      conduct a comprehensive study of changes in commercial
 3      property values in this Commonwealth, assess the fiscal
 4      impact on local governments and school districts and make
 5      recommendations.
 6      WHEREAS, Communities across the United States are
 7   experiencing historically low office occupancy, and the national
 8   office vacancy rate reached an all-time high of 20.7% in 2025,
 9   driven in part by increased remote work and gradual return-to-
10   office policies; and
11      WHEREAS, Elevated vacancy rates can depress commercial
12   property values, which may reduce assessed values and the
13   property taxes paid by owners; and
14      WHEREAS, Declining commercial values and the resulting
15   erosion of property tax revenue can strain municipal budgets,
16   with some jurisdictions projecting shortfalls on the order of $1
17   billion or more over the next several years due to falling
18   commercial property tax receipts; and
19      WHEREAS, Reduced property tax revenue poses a substantial
 1   risk to local education budgets, as approximately 55% of public
 2   school funding in this Commonwealth comes from local sources,
 3   and roughly 44¢ of every school dollar is derived from local
 4   property taxes; and
 5      WHEREAS, Persistent revenue declines can impair the ability
 6   of school districts to fund programs and services, with
 7   disproportionate effects on middle-income and low-income
 8   communities; and
 9      WHEREAS, The fiscal pressures associated with reduced
10   commercial property tax revenue may shift costs to residents if
11   school districts or municipalities must raise taxes to sustain
12   essential services; therefore be it
13      RESOLVED, That the House of Representatives direct the
14   Legislative Budget and Finance Committee to conduct a
15   comprehensive study of changes in commercial property values in
16   this Commonwealth, assess the fiscal impact on local governments
17   and school districts and make recommendations; and be it further
18      RESOLVED, That the study, at a minimum, do all of the
19   following:
20          (1)   Examine the current state of commercial property
21      values in this Commonwealth, including recent trends in
22      valuation, assessment and appeals.
23          (2)   Identify Commonwealth-level mechanisms that address
24      local budget shortfalls attributable to declining commercial
25      property values and evaluate their effectiveness.
26          (3)   Provide best-practice recommendations for counties
27      and school districts on assessment practices and tools to
28      minimize volatility in district budgets;
29   and be it further
30      RESOLVED, That the Legislative Budget and Finance Committee

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1   be authorized to request from Commonwealth agencies, departments
2   and municipalities any data or information not protected from
3   public disclosure by Federal or State law that is necessary to
4   conduct the study; and be it further
5      RESOLVED, That the Legislative Budget and Finance Committee,
6   within one year after the adoption of this resolution, transmit
7   a report of its findings and recommendations to the General
8   Assembly and post the report on the Legislative Budget and
9   Finance Committee's publicly accessible Internet website.




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