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Senate Approves Property Tax Reform Bill
Addresses Local Control, Provides Minimum 35 Percent
Reduction
HARRISBURG -- The
State Senate today passed a comprehensive property tax reform plan that would
allow voters to decide in the 2006 primary election whether to reduce school
property taxes by raising local earned income taxes.
“The measure we approved today reflects serious
bipartisan negotiation, it profits from the lessons drawn from the experience of
Act 50 and Act 72, and it is true to important taxpayer principles,” said Senate
President Pro Tempore Robert C. Jubelirer. “This approach offers a certain
timeline, relative simplicity in the choices, broad participation, and the
ability for families to reasonably calculate how it benefits them.”
The proposal would require school districts to
place a referendum on the Spring 2006 Primary Election ballot asking voters to
increase the Earned Income Tax (EIT) rate in exchange for a reduction in their
property taxes.
“We considered the merits of many proposals
during the Special Session and we reached a consensus that this plan represents
the best opportunity to empower local citizens and provide true and immediate
property tax relief,” said Senate Majority Leader David J. Brightbill.
Under SB 30, the minimum property tax reduction
offered would be at least 35 percent of the maximum homestead exclusion, and
homeowners would see tax relief in 2006. In addition, the legislation
establishes a statewide “backend referendum” requirement for school districts
wanting to increase tax rates that go beyond the inflation rate.
SB 30 would also double the size of
Pennsylvania's popular Property Tax and Rent Rebate Program -- increasing
payments by $131 million and enabling 281,000 additional low income seniors to
receive tax relief.
“Both sides of the aisle worked together to meet
the Governor's requests and we improved upon that,” said Senate Education
Committee Chairman James J. Rhoades. “We expanded the Property Tax Rent Rebate
program to add 281,000 more senior citizens -- those we consider to be the most
vulnerable and those we hear from on a regular basis.”
SB 30 now goes to the state
House of Representatives for consideration.
Property Tax
Relief Act Summary
Property
Tax/Rent Rebate Program
Property
Tax Relief from EIT and Gaming Revenues
Property
Tax Relief Act FAQs
 
Jubelirer
Brightbill
Rhoades
Thompson
Scarnati
Rafferty
Browne
Wonderling
D. White
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