House Finance Committee Examines Grove’s Property Tax Elimination Legislation
6/4/2013

HARRISBURG – The House Finance Committee Monday examined several property tax reform proposals, including Rep. Seth Grove’s (R-Dover) House Bill 1189, known as the Optional Property Tax Elimination Act.

“While I can appreciate the desire for a complete statewide elimination plan, the reality is that there are not enough votes in the Legislature to adopt such a proposal,” said Grove.  “My legislation will allow the issue to be decided at the local level by school boards.  After all, property taxes are a local issue.  They vary by region and school district.  Property tax reform is simply not an issue we can tackle with a broad stroke at the state level.  School districts have the best understanding about the needs of the residents they serve and the local economy, so they should decide how best to fund their services.”

Grove’s House Bill 1189 would allow school districts to collect an elimination tax to eliminate or reduce property taxes.  Types of elimination taxes permissible under the legislation would include Earned Income and Net Profits, Mercantile and Business Privilege.  School boards would be required to hold a public hearing about the proposal and post a public notice of its intent before adopting such an ordinance. 

Every dollar collected through the elimination tax would be applied directly to the reduction of the property tax millage rate.  If the millage rate is eliminated, elimination tax increases would be held to limits already outlined in state law. 

“Pennsylvania is very diverse state, which has made it very difficult to find a one-size-fits-all statewide solution,” said Grove.  “Not all school districts are faced with the same funding and property tax issues.  The goal of any property tax reform should be to allow school districts to retain local control and to ensure all tax dollars stay in their home district. No one wants to see additional local tax dollars sent to Harrisburg for redistribution to other school districts throughout the state.  My plan would keep taxpayer dollars in their home school district, while providing for the opportunity to finally end the financing of education through property taxes.”

More information about Grove and his legislative priorities is available at www.RepGrove.com and www.Facebook.com/RepSethGrove

Representative Seth Grove
196th District
Pennsylvania House of Representatives
Media Contact:  Nicole Wamsley
717.783.8063
nwamsley@pahousegop.com
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