Property Tax Relief
Property
taxes continue to burden our region, especially during a time when so many are
unemployed or underemployed. Over the years, I have heard many ideas for
reducing or even eliminating property taxes. Elimination of property taxes
would only trade one tax for another, as funding for education would simply have
to come from somewhere else. The State Sales Tax would need to be increased to
14 percent or the Personal Income Tax could be doubled to replace the $10
billion that is generated by property taxes. I support a three part approach to
property tax relief that includes 1.) Controlling costs and school district
spending; 2.) Allocating a Larger Share of State Education Funding to our Local
Schools; 3.) Direct aid to taxpayers.
Controlling School District Spending
We count
on our school districts to provide a top quality education, and while this is a
costly effort, there must be protections in place for taxpayers. In the past,
there were few controls set to prevent schools from dramatically increasing
property taxes due to spending.
Act 1 of 2006
has set a new course for controlling property taxes by mandating that school
districts keep spending in line with the Inflation Index. Spending above
the Inflation Index must be approved by voters during a general election. Until it expired in June, a mandate
waiver program was in place that allowed school districts to apply to the
Department of Education to be exempt from certain costly state mandates. I
will push for the Legislature to vote to renew this important cost saving
program.
Allocating a Larger Share of State Education Funding to our Local Schools
The school districts in our region receive the least amount of state funding,
forcing most education costs on local taxpayers. Because the state
delivers education dollars according to each district’s per capita income rather
than actual expenditures or enrollment, as much as 80 percent of our local
education budgets are supported though property taxes. Each year the basic
education subsidy is increased, however, our local districts normally only
receive the minimum 2% increase. Some districts fund as much as 75% of
their budget with the state subsidy, even though their enrollments are dropping.
The funding formula has to be changed. Even as our area schools have seen
a rapid increase in enrollment, as much as 70 percent since the mid 90s in some
districts, we still receive among the lowest aid ratios in Pennsylvania.
While the majority of education dollars should go towards the neediest school
districts, I believe those in our area are short changed and bear too great a
burden. Each year, I fight for a more adequate share of state education
dollars for our local school districts. While our students are receiving a
top notch education, more needs to be done to reduce the burden on local
taxpayers.
Direct
Aid to Taxpayers
Pennsylvania has made significant progress in recent years to provide direct
aid to taxpayers. The Homestead Exemption Program provides for
property tax relief through the state’s gambling revenue.
If you
have not applied for the Homestead Exemption:
Click here for more information in Bucks County
Click here for more information in Montgomery County
In 2006,
my proposal expanded the
Property Tax / Rent Rebate Program
that benefits the state’s seniors, helping many stay in their homes.
Most
recently, in the Senate I have been working to pass the
Senior Citizen Property Tax Freeze Act,
legislation that would freeze property taxes at their current level for eligible
senior citizens. School districts would be reimbursed for the lost tax
revenue by the Commonwealth.
For the
Future
There is no easy fix for property tax relief, but I
believe that we are on the right track. I don’t believe that we must
relentlessly tax residents in order to have quality education, nor do we
have to sacrifice quality education for taxpayer relief. Pennsylvania must
better distribute its resources among our schools. As well, we must
continue to build upon the many programs already in place that are working
to relieve the tax burden.
For more information visit
www.senatorgreenleaf.com.
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Offices
Harrisburg Office
Senate Box 203012
Harrisburg, PA 17120-3012
(717) 787-6599
800-848-5013
(717) 783-7328 Fax
District Office
711 North York Road
Suite 1
Willow Grove, PA 19090-2124
(215) 657-7700
800-924-3300
(215) 657-1885 Fax
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