Robbins Supports Bipartisan Property Tax Reform Plan

Measure Would Also Provide Additional Tax Relief for Low Income Seniors

Harrisburg -- State Senator Bob Robbins (R-50) today voted for the Taxpayer Relief Act, a bipartisan property tax reform measure that will lower school property taxes for all Pennsylvania homeowners and provide additional tax relief to senior citizens on fixed incomes.

The legislation will give school districts the option to increase the local Earned Income Tax (EIT) rate or levy a Personal Income Tax (PIT) in exchange for a corresponding reduction in property taxes. School district plans will be presented to their voters for approval at the May 2007 Primary Election. An increase in the EIT by the maximum of one percent will result in approximately 30 percent property tax reductions for homeowners in the 50th Senatorial District.

Controls on spending -- limited to the rate of inflation -- will be put into place this year for school districts. Beginning in 2007, all school districts will be required to obtain voter approval for spending increases beyond the rate of inflation (i.e. "backend referendum").

Also beginning in 2007, taxpayers will be offered the opportunity to pay their property taxes in installments.

Additionally, beginning in 2007, the size of the popular Property Tax and Rent Rebate Program will be more than doubled -- adding more than 422,000 senior citizens to the program. Currently, senior citizens making up to $15,000 can apply for up to $500 in property tax or rent rebate relief. This legislation will increase the eligibility limit to seniors making up to $35,000, enabling more than 761,000 seniors to take advantage of up to $650 in property tax or rent rebate relief.

"This tax reform plan will expand and improve the Commonwealth's existing Property Tax and Rent Rebate Program to provide tax relief to more than 761,000 senior citizens who are on the lowest end of the income scale," Robbins said. "In addition, taxpayers will have the option to vote for tax systems that reflect their local priorities, not those imposed on them by the state."

"The backend referendum requirement is crucial to holding the line on school spending as it gives taxpayers the power to reject tax increases that they can't afford or that are excessive," Robbins said. "I am pleased that we have taken an important step providing property tax relief, while at the same time, helping seniors on a fixed income who are hardest hit by rising property taxes."

The House of Representatives is expected to take up the Taxpayer Relief Act, House Bill 39, on Wednesday, May 3rd.

CONTACT:

Nate Silcox
(717) 787-1322