Property Tax Reform

The number one issue I hear about from residents of the 196th District is property taxes. 

Pennsylvania’s system of funding public education is regressive, unbalanced and in great need of reform.  It is completely inequitable to fund public education based on property ownership, and as a co-leader of the House Majority Policy Committee’s Property Tax Reform Development Team, I am working to eliminate school property taxes. 

I wholeheartedly believe an alternative school funding mechanism is necessary in Pennsylvania, but that does not mean property tax reform will be without its challenges.  There are many obstacles to establishing a substitute form of taxation.  What people need to remember is that this will be a tax shift – not a total abolition of all funding for public schools.   

The major stumbling block to shifting public school funding away from property taxes is the diversity within our Commonwealth.  Though it is hard for residents of central Pennsylvania to grasp, many areas of the state do not have a property tax problem.  Homeowners in some regions of the state may never have experienced the frequent and extraordinary tax increases York County residents have seen. 

As you read through the information provided below, keep in mind that Pennsylvania would need to find a funding source of more than $9 billion in order to completely shift away from residential property taxes or $12 billion for the complete elimination of all school property taxes.  This could be through one or a variety of sources such as the Personal Income Tax, Earned Income Tax, Sales and Use Tax expansion or increase, or other taxes and fees.   

It is also important to remember that in order for a shift to be successful, we must find a solution to controlling public school district costs.  If we do not find a way to hold down school spending, we will find ourselves right back in our current situation.  

House Republicans have created a package of legislation aimed at assisting school districts in controlling costs by eliminating state mandates, streamlining the school construction process and providing public schools the tools they need to manage expenses. 

If you have any questions regarding the following information, feel free to contact my office: 

Grove Property Tax Increase Exception Controls Included in Final Budget Deal

2011 Property Tax Survey Results 

School District Property Tax Review (A PowerPoint presentation prepared by the House Majority Policy Committee’s Property Tax Reform Development Team)

Spreadsheet of total state revenue to and average daily membership of school districts 

My Press Release on eliminating Act 1 of 2006 exceptions, through which school districts increase property taxes beyond the rate of inflation  

My op-ed on the need for education mandate relief  

My press release on my legislation to streamline the school construction process

Pennsylvania Taxation Manual

Pennsylvania County Property Reassessment

 

A History of Property Taxes

Reforming Pennsylvania’s Property Taxes: An Analysis of the Economic Impacts of Shifting from the Real Property Tax to a Sales Tax to Fund Education

Types of Property Tax and Assessment Limitations and Tax Relief Programs