Pa House votes to reduce school property taxes

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Governor Corbett on PA State Budget and Gas Taxes

HARRISBURG, Pa – School property taxes would be lower in every district in Pennsylvania under legislation that passed the House today by a vote of 105-86, House Majority Leader Dave Reed (R-Indiana) said.

“Our property tax reduction plan provides nearly $5 billion in property tax relief to our citizens,” Reed said. “It’s a responsible, balanced approach addressing a problem we have been discussing here in Pennsylvania for decades.”

House Bill 504 would ensure that every new dollar generated through the proposed changes be fully dedicated to school property tax relief. It would change the Personal Income Tax rate to 3.7 percent and the Sales and Use Tax rate to 7 percent without expanding what’s taxed. Items currently exempt, such as day care, school books and nursing home care, would remain exempt.

The plan would generate and distribute nearly $5 billion in total relief. The bill includes a $125 million expansion of the Property Tax and Rent Rebate Program, which benefits low- to middle-income senior citizens and disabled residents across the state.

“This legislation will achieve what many thought was impossible,” Reed said. “This property tax relief bill increases the Commonwealth’s commitment to schools while reducing the property tax burden to our taxpayers. The cost controls included in the bill make sure the tax reductions stay in place, ensuring long-term relief.”

Reed said in many areas of the state some people have been forced to choose between paying their taxes, or buying food and medicine, and it shouldn’t be that way. The property tax relief bill provides a significant step forward toward increasing the fairness of how the state funds public education.

The bill now goes to the Senate for consideration.