School Property Tax

A bill to eliminate school property tax in Pennsylvania was advanced by the Senate Finance Committee Tuesday on a 6-5 vote.

The “Property Tax Independence Act” would replace property taxes by increasing the state income tax from 3.07 percent to 4.34 percent; sales tax would jump from 6 to 7 percent (8 percent in Allegheny County), together generating an estimated $12 billion for public schools annually.

But, Sharon Ward, director of the Pennsylvania Budget and Policy Center, said the numbers don’t add up.

State Senate supporters of a plan to replace school property taxes with higher personal income and sales levies are shopping their proposal around to colleagues.

It’s hard to tell for sure if popular support for property tax elimination has grown, but rallies and hearings on the issue tend to be packed with people who say their property taxes are so high they’re in danger of losing their homes.

A Senate Finance Committee hearing on the issue Wednesday was no exception. But even co-sponsors of the “tax shift” plan under consideration now would create new winners and losers.

Multiple pieces of legislation have been introduced to take on the burden of school property taxes.

The Senate Finance Committee is holding a public hearing on Tuesday regarding one of the bills, Senate and House Bill 76, which would eliminate school property taxes and replace them with a combination of personal income and sales taxes.

Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi (R-Delaware), said the Independent Fiscal Office plans to address a number of very serious complications with the defeated bill at the hearing.

Legislation Could Eliminate School Property Tax

Aug 14, 2013
Tim Lambert / WITF

After a year of review, Pennsylvania House Representative Jim Cox reintroduced House Bill 76 outlining the benefits of eliminating the school property tax in the Commonwealth. With 91 co-sponsors in the House and 22 in the Senate, Rep. Cox is confident the bill will appeal to both legislators and tax-payers. Matthew Knittel, director of the Independent Fiscal Office, has reviewed versions of the bill and says from a revenue perspective, the bill could be made to work in certain parts of the state.