Senator Robbins Votes To Approve Homeowner Tax
Relief Act:
Measure Will Lower Property Taxes in PA
HARRISBURG - The State Senate today approved by a vote of 50-0 a
sweeping property tax reform plan that would enable voters to
significantly reduce their school property taxes and gain greater
control over future taxing decisions.
Under the Homeowner Tax Relief Act, school districts will qualify
for property tax relief generated from new gaming revenues if they
implement a .1 percent increase in the earned income tax that local
residents pay. The additional revenue would be used to reduce property
taxes by a corresponding amount.
An additional provision in the bill is similar to one that Senate
Republicans passed last year in an effort to bring down skyrocketing
property taxes. This provision would allow school districts to further
reduce property taxes up to the maximum amount allowed under the state
Constitution's Homestead Exemption.
In return for accepting the state money, school districts would
also have to impose a limit on future local property tax increases. If
a school district wants to raise taxes beyond the rate of inflation,
it would first have to seek voter approval through a referendum,
unless it meets one of the narrowly tailored exceptions.
Senator Robbins (R-50) said the measure would lower property taxes
by an average of 20 percent statewide and give voters greater control
over the taxes that are levied in their school district. It is the
first major reform in the state's property tax system in more than
three decades.
"This bill provides what taxpayers want – less reliance on property
taxes – while retaining local control," Senator Robbins said. "This is
an important move to cut property taxes, control spending and give
taxpayers protections against future school tax increases through use
of referendum."
Senator Robbins added that the so-called "backend referendum
requirement" is crucial to holding the line on school spending and
protecting homeowners from substantially larger tax increases in the
future while providing reasonable exemptions.
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.
The measure now goes to the House of Representatives for their
consideration.
CONTACT: Michael Hengst (717) 787-1322
