Pa. House votes to fund property tax cut for seniors with a levy targeting big tech companies

The revenue would go toward a property tax rebate for senior citizens.

The state House passed a piece of legislation Tuesday that would tax digital advertising by tech companies and use the revenue to fund a property tax rebate for seniors.

The Digital Ads Tax Bill or HB 1678 was approved in a bipartisan vote of 139-63. Many Mon Valley legislators voted along party lines against the measure, with Reps. Bud Cook, R-West Pike Run Township, Eric Davanzo, R-Smithton, Andrew Kuzma, R-Elizabeth, Tim O’Neal, R-South Strabane, and Ryan Warner, R-Perryopolis, opposing it.

Thirty-nine Republicans joined all but two Democrats in supporting the bill.

Democratic Reps. John Inglis of West Mifflin and Dan Goughnour of McKeesport voted in favor of the legislation. They were both co-sponsors.

House Bill 1678 was introduced by state Rep. Elizabeth Fiedler, D-Philadelphia, alongside Aerion Abney, D-Allegheny, and Inglis.

“The Digital Advertising Tax ensures corporations and billionaires are paying more of a fair share of taxes, and it’s about time,” Inglis said. “There is still work to be done regarding fair taxes on the wealthy, but this is an exciting and overdue step in the right direction.”

The Pennsylvania Department of Revenue estimates the measure could bring in roughly $329 million in the 2026-2027 fiscal year.

A statement from House Democrats cited a recent report by the Internet Advertising Bureau and PricewaterhouseCoopers stating that the digital advertising industry saw an almost 14% yearover-year increase in 2025.

Alphabet (Google) and Meta are currently the two highest revenue earners from digital advertising, each reporting more than $230 billion in revenue this year.

Most Republicans opposed the legislation due to fear that it could slow down economic growth. “Less taxes, not more,” Cook said. “We need to be attracting more businesses to the commonwealth, not taxing them away.”

Warner stated that the legislation would end up increasing taxes for Pennsylvania residents.

“As the author of a property tax elimination bill for senior citizens and a co-sponsor of legislation to eliminate all property taxes, I am 100% in favor of providing real property tax relief to homeowners,” Warner said. “Unfortunately, this bill will do nothing more than raise taxes and follow the same path as the unfulfilled promise of property tax relief funded by gaming revenues from casinos.

“It’s time to stop playing political games and get serious about providing dollar-for-dollar property tax relief so seniors no longer face the prospect of losing their homes and young people can afford to achieve the American dream of home ownership.”

Davanzo reiterated a similar message, stating that the legislation would carry over taxes to state residents.

“At the end of the day, House Bill 1678 creates a new tax in order to provide relief from an existing tax. That simply doesn’t make much sense to me,” Davanzo said. “And let’s be honest— businesses don’t pay taxes, consumers do. The cost of this new digital advertising tax will ultimately be passed along to customers through higher prices. In many cases, the very people this bill claims to help will end up paying for it.

“If the goal is to provide property tax relief, we should focus on reducing the tax burden on homeowners directly, not creating a new tax that gets passed on to Pennsylvania families. Real relief comes from lowering costs and making government live within its means, not creating new taxes and new programs. That’s why I voted no.”

Democrats say the bill is designed to close a loophole for digital ads. They stated that updating the gross receipts tax to include digital advertising could end up raising $500 million annually in new revenue for the state.

Democrats expect the tax revenue to grow, as the digital ads industry is projected to be worth $1 trillion in five years.

They add that the goal of the legislation is to make sure large tech companies pay a fair share in taxes. HB 1678 is part of a Democratic “Tax Billionaires. Fund PA” package.

“Plain and simple, this legislation is about requiring big outof- state corporations profiting off the people of Pennsylvania to pay their fair share in taxes, and to invest in the public services and programs we all count on,” said Fiedler, the prime sponsor of the bill. “Working people are struggling to pay their bills and are tired of hearing there is no money for their schools, health care and transportation.

“If multinational corporations making record-breaking profits want to do business in our state, then they should pay their fair share just like working people and small businesses do.”

The bill includes an amendment that provides a property tax rebate for homeowners over age 65, or homeowners living with someone over 65.

“Each approved claimant shall receive a rebate in an amount equal to the amount of local school real estate taxes paid by the approved claimant in the current fiscal year less the amount paid in the year the claimant turned 64 years of age,” the bill reads, “or if the claimant is not at least 65 years of age, the amount paid in the year the eligible individual residing in the claimant’s homestead turned 64 years of age.”

The legislation includes an exemption for broadcast and news media companies.

The digital ad tax bill will now move to the Republican-controlled state Senate. Goughnour, O’Neal and Kuzma could not be reached ahead of press time.