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Senate to Vote on Property Tax Reform Bill
Addresses Local Control,
Provides Minimum 35 Percent Reduction
HARRISBURG -- Senate
Majority Leader David J. Brightbill and Senate Minority Leader Robert J. Mellow
announced that the Senate is planning to vote on a bi-partisan, comprehensive
property tax reform package.
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.
Under the bill, 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.
“The Pennsylvania Taxpayer Relief Act proposal
that the Senate will consider is the result of weeks of deliberations and
discussions. We have considered the merits of many proposals during the Special
Session and we reached a bi-partisan consensus that this proposal now before us
represents the best opportunity to provide true and immediate property tax
relief,” said Senator Brightbill.
Senator Mellow added, “The proposal places a
high priority on protecting low- and middle-income senior citizens, who are
often in the greatest danger of losing their homes to high tax bills, and on
streamlining the process to expedite tax relief.”
The compromise plan would also bolster the
Commonwealth's existing Property Tax and Rent Rebate Program to provide relief
to an estimated additional 281,000 Pennsylvanians.
The legislation also establishes a statewide
“backend referendum” requirement for school districts wanting to increase tax
rates above an annual inflationary percentage while repealing Act 72 of 2004.
Senators Mellow and Brightbill said the
bi-partisan plan will be amended into Special Session Senate Bill 30 prior to
the final floor vote.
 
Property Tax
Relief Act Summary
Property
Tax/Rent Rebate Program
Property
Tax Relief from EIT and Gaming Revenues
Property
Tax Relief Act FAQs
Sen. Brightbill speaks to the media Dec.
14 to outline a bipartisan Taxpayer Relief measure that is scheduled for a Senate vote Thursday.
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