FOR
IMMEDIATE RELEASE
7/06/04
Back
Senate approves Homeowner Tax Relief Act
Measure provides alternatives, voter control over
increases
Senate Bill 100, a property tax reform plan that would give school
districts new options to raise revenues and give voters greater control
over future taxing decisions, is now on the Governor's desk awaiting his
signature and enactment into law, according to Senator John Pippy, R-37th
District.
"This bill is a step in the right direction, but it certainly is not a
cure-all by any means. It provides school districts with ways to reduce
the reliance on property taxes. This will provide some relief to families
and especially senior citizens on fixed incomes who are particularly
burdened by high school taxes," Senator Pippy said. "Additionally, it
provides a 'back end referendum' requirement that gives voters more
control over school spending and future school tax increases."
Senator Pippy has been active in the effort to eliminate residential
property taxes as a method for raising revenues. He is a co-sponsor of
Senate Bills 717 and 718, companion pieces of legislation that would
prohibit political subdivisions from collecting taxes on homestead
properties. The package would replace the lost revenues with an additional
1 percent for the state sales tax, an additional 1.55 percent for the
state income tax, and a 2 percent increase for the realty transfer tax.
"SB 100 is a step in that direction," Senator Pippy said. "It shifts a
portion of the burden from property owners, but we can and should move
toward eliminating property taxes."
SB 100, also known as the Homeowner Tax Relief Act, is similar to
legislation that Senate Republicans passed last year in that it uses an
increase of .1 percent in local income taxes as a way to reduce property
taxes up to the maximum amount allowed under the state Constitution's
Homestead Exemption.
School districts wanting to receive a share of the revenue generated
from expanded gaming in Pennsylvania will be required to implement the .1
percent increase in the earned income tax in order to qualify for property
tax relief generated from new gaming revenues.
School districts opting into the plan would also have to impose a limit
on future local property tax increases. Under the "backend referendum"
provision, school districts wanting to raise taxes beyond the rate of
inflation would have to seek voter approval, unless the tax increase falls
under one of a handful of narrowly tailored exceptions
At least 36 other states, including neighboring Ohio, New Jersey and
Delaware, allow for some level of public input over how school district
dollars are spent, according to the National Conference of State
Legislatures.
