Property Tax Reform Package


Property Tax Elimination Package Moving Forward

I am leading a group of lawmakers who see a future in Pennsylvania free of Property Tax. The House is currently debating a four bill package that would allow school districts to eliminate property taxes, and find a combination of taxes that best fits the needs of local districts and students. To date, no state in the country has found a way to eliminate property taxes, but this package provides both effective, and achievable property tax relief that benefits tax payers and school districts.

The Four Bills are…

  • House Bill 1189 – Grove: Gives local school districts the ability to eliminate property taxes in favor of an array of taxing options that best suits the individual needs of residents and students of local school districts. It was amended in committee to ensure only 50 percent of the revenue raised from the elimination tax came from business taxes.
  • House Bill 125- Rep. David Maloney (R-Berks): Amends Pennsylvania’s Constitution giving local taxing authorities the power to exclude 100 percent of homesteads from property taxes.
  • House Bill 1677- Rep. Doyle Heffley (R-Carbon): Amends Pennsylvania’s Constitution eliminating homestead exclusion limits of one-half of the median assessed value of a homestead property.
  • House Bill 1685- Rep. Kerry Benninghoff (R-Centre/Mifflin): It allows school districts to increase the Earned Income Tax (EIT) rate for the purpose of providing homestead exclusions, instead of through voter referendum. It allows school districts to utilize their property tax reduction allocation for general government operation if they eliminate their property taxes.

Currently school districts receive slot machine revenue to make up for homestead exclusions. In this four bill package homestead exclusions are eliminated, but part of House Bill 1685 would make it possible for districts to receive all of their slot machine revenue, but only if they eliminate their property taxes. This will increase statewide funding by more than $525 Million. Here is a breakdown in how much each York County School District will benefit if they eliminate property tax.

New Funding if they Eliminate Property Taxes:

School District                                 Total Property Tax Reduction Allocation

Central York SD

$1,066,569.85

Dallastown Area SD

$1,381,417.65

Dover Area SD

$1,275,694.04

Eastern York SD

$729,886.21

Hanover Public SD

$574,804.66

Northeastern York SD

$1,284,937.37

Northern York County SD

$723,060.01

Red Lion Area SD

$1,899,747.39

South Eastern SD

$992,636.16

South Western SD

$1,118,897.38

Southern York County SD

$1,065,927.76

Spring Grove Area SD

$1,000,106.55

West Shore SD

$1,284,935.79

West York Area SD

$1,060,752.21

York City SD

$2,902,021.73

York Suburban SD

$664,355.57

Here is a link to how much funding will increase for every school district in Pennsylvania: (PDF Format)

For more information on the Four Bill Package, and how it will benefit Pennsylvania’s Tax Payers and Schools Click Here (PDT Format)

Click here to read House Bill 1189.

Click here for House Bill 1189’s co-sponsorship memo.

Optional Property Tax Elimination Act (OPTEA) Informational Flyer (PDF Format)

Optional Property Tax Elimination Act (OPTEA) Brochure (PDF Format)

House Bill 1189 - Myths vs. Facts

Grove Discusses Property Tax Plans on PA Newsmakers