Sunday, April 03, 2005
Property Tax Relief - Act 72
Pennsylvania passed Act 72 to allow gambling revenues to be used to offset property taxes for schools. But required the schools to pass a new income tax or increase an existing income tax by 0.1% to qualify for their share of revenue. Some 50-85 school boards have opted to not participate; the rest of the 500 boards have opted to participate.
Gov Rendell has asked County Commissioners to press their school boards and municipal officials to get all school districts to opt in. Our local (Montrose) school board has decided to opt out and will come under some pressure to change their minds and opt in.
The PA Dept of Ed has this site Property Tax Relief , which has lots of links and info, but no direct cite of the Act 72 legislation.
The PA School Board Association (PSBA) has this site Issues/Tax Reform/Act 72 of 2004 Index . It has more information and related links. Clicking on related links to Act 72 will bring up Sen Bill 100, which seems to be the text. The numerology of bills and acts eludes me, but this seems to be a good source for those who can read legalese.
The question, for those who still have a choice, is whether the potential future property tax relief is worth the certainty of a new income tax, presumably to offset the relief by shifting the burden - ( but why an offset for a "relief" ?).
There is one other feature of Act 72 that is very attreactive to taxpayers - but much less so to school officials - if you opt in, you can't raise future taxes by more than rate of inflation without having a citizen referendum. What a novel idea ! Requiring the citizens to vote before raising taxes at high rates! That provision seems to be at the heart of the reluctance of some boards to join. The Governor has stressed that there are many exemptions to this requirement as part of his effort to get all school boards and districts to opt in.
There is also some rumbling that the legislature may decide to force all boards to have the referendum on tax increases regardless of participation under Act 72. That would make sense as it would give all state citizens equal control over the taxes imposed on them. But that is only rumor at this point.
So, if your local and reading this , go learn and decide what you want.
Gov Rendell has asked County Commissioners to press their school boards and municipal officials to get all school districts to opt in. Our local (Montrose) school board has decided to opt out and will come under some pressure to change their minds and opt in.
The PA Dept of Ed has this site Property Tax Relief , which has lots of links and info, but no direct cite of the Act 72 legislation.
The PA School Board Association (PSBA) has this site Issues/Tax Reform/Act 72 of 2004 Index . It has more information and related links. Clicking on related links to Act 72 will bring up Sen Bill 100, which seems to be the text. The numerology of bills and acts eludes me, but this seems to be a good source for those who can read legalese.
The question, for those who still have a choice, is whether the potential future property tax relief is worth the certainty of a new income tax, presumably to offset the relief by shifting the burden - ( but why an offset for a "relief" ?).
There is one other feature of Act 72 that is very attreactive to taxpayers - but much less so to school officials - if you opt in, you can't raise future taxes by more than rate of inflation without having a citizen referendum. What a novel idea ! Requiring the citizens to vote before raising taxes at high rates! That provision seems to be at the heart of the reluctance of some boards to join. The Governor has stressed that there are many exemptions to this requirement as part of his effort to get all school boards and districts to opt in.
There is also some rumbling that the legislature may decide to force all boards to have the referendum on tax increases regardless of participation under Act 72. That would make sense as it would give all state citizens equal control over the taxes imposed on them. But that is only rumor at this point.
So, if your local and reading this , go learn and decide what you want.
