Fifteen cities in Pennsylvania are pioneering an innovative approach to local tax reform that harnesses market incentives for urban renewal. Opting for the so-called 'two-rate' or 'split-rate' property tax, these cities are lowering taxes on buildings, thereby encouraging improvements and renovations, while raising the tax on land values, thus discouraging land speculation. The resulting infill development as indicated by increased building permits means downtown jobs, efficient use of urban infrastructure, an improved housing stock, and less urban sprawl. Cities in other states are poised to follow Pennsylvania's example

The goal of the split-rate property tax is to encourage urban renewal and discourage land speculation.

This is a list of some of the improvements in the City of Harrisburg, which in 1981 was the Second Most Distressed City in the United States:

- The number of vacant structures declined from over 4200 in 1982 to less than 500 today.
- Over 12,500 building permits were issued from 1982 to 1993, representing over $1.25 billion in new investment in 1991 and 1992, despite a national economic recession and a tight credit market, the city set two consecutive records for the most building permits issued in any year.
- The value of taxable real estate in 1993 was $883 million, versus $212 million in 1982.
- With a resident population of 53,000, there were 4,700 more city residents in 1993 employed than in 1982.
- 41% of all city households had incomes over $25,000 in 1990, compared to 16% in 1980.
- The Part I Felony Crime Rate has dropped 22.5% since 1981.
- Selected as one of eight Profile Cities in the U.S. where urban renaisance has been successfully conducted.