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Senator Dominic Pileggi (R-Delaware) This week, I joined seven Republican senators representing Southeastern Pennsylvania to announce a major tax reform package aimed at giving homeowners "Independence from Property Taxes." During a news conference at the Valley Forge Convention Center, my colleagues and I stated that we will push for legislation to lower property taxes, provide additional tax relief to senior citizens, and enable school districts, municipalities and counties to shift from property taxes to income taxes. This tax reform package will includes spending controls that will make state government live with the same economic realities that taxpayers face on a daily basis. Taking part in the announcement included Senator Joe Conti (R-Bucks), Senator Robert Tomlinson (R-Bucks), Senator Robert Thompson (R-Chester), Senator Ted Erickson (R-Delaware), Senator Stewart Greenleaf (R-Montgomery), Senator John Rafferty (R-Montgomery), and Senator Robert Wonderling (R-Montgomery). Senator Conti explained that after Pennsylvania's school districts made their decisions about Act 72, we went to work and created an agenda to achieve independence from school property taxes once and for all. The policies that we're proposing are significant and achievable, and they'll work not only in the districts that we represent, but across the Commonwealth. Senate Appropriations Committee Chairman Robert Thompson stated that an immediate call to action for the General Assembly to take up the legislation as part of its deliberations during the upcoming fall session will be issued. We all realize there are many specific issues that still must be resolved, however, this package provides an overall framework from which we can work. Among the legislation in the package are proposals to:
We would like to emphasize that the package is aimed at providing relief to homeowners who have seen their property taxes skyrocket in recent years. It was noted by Senator Wonderling that in his district school property taxes have increased by as much as 60% during the past 5 years. He commented that we must act now to provide relief to residents who are being taxed out of their homes. Senator Rafferty echoed his concern, adding that skyrocketing property taxes are making home ownership impossible for many, including young people and seniors. There is a need to control spending and look at a fairer way to fund our schools. The tax reform package also requires spending controls at the state level. SB4, the "Taxpayer Fairness Act," would hold state spending to the rate of inflation. It would also set aside all surplus revenues into the state's Rainy Day Fund for use in times of economic necessity. Working people across Pennsylvania have to live within a budget and so should state government. According to the National Conference of State Legislatures, 30 states already have spending controls, revenue controls or both. Pennsylvania is in the minority of states that have no spending or revenue controls. In addition to curbing spending, the package also would give taxpayers more control over the mix of taxes they choose to replace property taxes. This bill by Senator Erickson will replace the regressive real estate property tax as the primary source of funds for the school districts by allowing school districts, as well as counties and municipalities, to generate funds by adopting either an Earned Income Tax (EIT) or a Personal Income Tax (PIT). The bill was drafted to address the varying financial needs and the income base in each school district. Therefore, the level of taxation should be permitted to vary, and taxpayers should have the final say in what new taxes are implemented. The tax reform package will provide additional help to seniors on fixed incomes. One bill, supported by Senator Greenleaf, would use anticipated slots revenue to expand the Property Tax / Rent Rebate Program. Greenleaf's proposal will benefit those most affected by property tax and rent increases--senior citizens on modest fixed incomes by using slots revenue to provide property tax and rent rebates to about one million older and disabled Pennsylvanians of modest income. The current program serves about 330,000 citizens. Another bill sponsored by Senator Tomlinson would freeze property taxes for senior citizens. In addition, the legislation would apply retroactively to tax years beginning January 1, 2004, which would provide immediate property tax relief for our older residents. Senator Tomlinson believes that the revenues from expanded gaming in the Commonwealth have given us the opportunity to help our seniors who have been hardest hit by property tax increases. We need to take action now to help our seniors deal with this significant financial burden. If you would like more information on the tax reform package, please contact my Harrisburg office at (717) 787-4712. CapNews Guest Speaker: Archives |
