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12th District PA House of Representatives In keeping with my promises to southern Butler County residents, I presented testimony before the House Finance Committee last week about the need for immediate and effective property tax reform in Pennsylvania, while also providing information about my plan to eliminate property tax altogether. My legislation, House Bill 25, will:
Across the nation, most citizens feel that property taxes are the most burdensome in our society. Property taxation prevents landowners from truly owning their property, since they are forced to pay the government each year to avoid having their property taken away. The property tax actually serves as a never-ending government lease on our property. I have spoken with people who are now paying more to the government per month to keep their property than they originally paid to the bank to supposedly buy their property. One of the liberties our Founding Fathers placed a premium on is the right to own property. Our Pennsylvania Constitution, Article 1, Section 1, reads, "All men are born equally free and independent, and have certain inherent and indefeasible rights, among which are those of enjoying life and liberty, of acquiring, possessing and protecting property and reputation, and of pursuing their own happiness." House Bill 25 will restore that right of acquiring and truly possessing our property, by restoring property rights for our generation and for our children. House Bill 25 will also improve our quality of life by:
And last, but not least, it will provide taxpayer protections by requiring voter approval of future local government tax increases, unless they are needed for health or safety reasons, and general fund surpluses, minus the amount required by statute for the Budget Stabilization Reserve fund, would be automatically used to reduce the personal income tax rate. The specifics of House Bill 25 are as follows: House Bill 25 is comprised of two main components, the school property tax portion and the local municipality tax portion. Property taxes would be eliminated during a six-year phase out period, with a 33% reduction in school property taxes in the first year alone. This six-year period will be broken down into two phases, the first three-year period will be used to eliminate the school property tax and the second three-year period will be used to eliminate the property tax collected by municipalities. The legislation is revenue neutral, requiring dollar for dollar replacement of the property tax revenue. The incremental approach of this legislation will allow the economy time to adjust to this cutting-edge reform measure. During the first three-year period, the school property tax will be phased out one-third annually while the personal income and sales taxes are increased proportionately. The sales tax will be increased by 1% each of the three years and the personal income tax will be increased .5% each of the three years. During the second three-year period, the property tax collected by local municipalities, such as our county, city, township and borough governments would be eliminated. Local governments would be required to reduce their property taxes by one-third of the base year collections each year, replacing the revenues through a gradual increase of the personal income and/or earned income tax. In order to allow local governments to retain taxing authority, they will be permitted to use the earned income tax (EIT) and/or the personal income tax (PIT) to collect any additional revenues they need above and beyond the initial adjusted rates to replace the property tax revenues. However, any increase beyond what is needed to replace the property tax revenues will require voter approval through referendum, unless the money is needed for public health or safety reasons. This will provide the taxpayers with a way to hold government accountable for its spending. House Bill 25 also requires the Legislative Budget and Finance Committee to conduct an annual review of the budget with the intent of identifying savings that could be used to reduce the PIT. Implementation of this far-reaching legislation will restore freedoms that have been lost by the citizens of this Commonwealth. Restoration of private property rights will propel Pennsylvania into a prosperous 21st century economy: an economy where senior citizens will be able to live in the homes they have worked for all their lives; families will be able to purchase homes to put a roof over their children's heads; and individuals will be encouraged to invest in home ownership. As individuals invest, the elimination of property tax will also lead to an atmosphere which will be conducive to job creation. Job creation will enable our young people to pursue their future careers here in Pennsylvania. The time for studying and restudying this issue is over. It is time to act. The citizens of Pennsylvania are weary of the continued political rhetoric regarding property tax reform. Many of the reform measures that have been proposed will only reduce or shift the property tax burden, leaving the beast of property tax in place to devour our citizens property rights. The reform Pennsylvania needs is a complete elimination of property tax, not a mere shift or reduction in the burden. This legislation is historic in nature, not rhetorical. It is attainable. House Bill 25 will enable us to have a prosperous, property tax free, 21st century Pennsylvania economy. CapNews Guest Speaker: Archives |
