Jan 27, 2008

COULD PROPERTY TAX DEBATE LEAD TO ANOTHER REVOLT AT THE POLLS??

Note: Information contained in this posting comes from our friends at the PA Chapter of FreedomWorks and the Pennsylvania Taxpayers Cyber Coalition.

"Eliminate school property taxes now or we will eliminate your job in 2008!" This was the very forthright warning from David Baldinger of the PA Taxpayers Cyber Coalition, and it should send a very clear message to the Members of the General Assembly that the People of Pennsylvania are demanding the complete elimination of the School Property Tax, or Legislators could face another voter revolt much like that in 2005 with the infamous Legislative Pay Raise. However of the half-dozen bills that are floating around the Capitol, one might get the impression that they're are looking at a Chinese menu--One from column A or two from column B and the taxpayer caught somewhere in the middle. If it sounds confusing you're right. However, in this individual's never to be humble opinion, there is one proposal that appears to get it right and that is HB 1275, which is known as the "School Property Tax Elimination Act of 2007."

Some of the key provisions of this legislation are as follows:

  • The SPTEA will ABOLISH the school property tax on all homestead/farmsteads as well as eliminate all local school nuisance taxes, local school EIT, and other ACT 511 taxes imposed by school districts.
  • School property tax elimination will be accomplished via a four year phase out of school property taxes at a rate of 25% per year.
  • The SPTEA utilizes our current sales tax mechanism to fund schools, restoring the original intent of the tax. Unlike the governor’s sales tax increase plan or House Biill 1600, the School Property Tax Elimination Act of 2007 does not increase the rate but maintains the current rate of six percent.
  • The sales tax provides a predictable and stable funding source that is tied to economic growth. This is in clear contrast to the school property tax which was not based on economic growth and was subject to much variation.
Of all the proposals that are pending before the Legislature, HB 1275 seems to be the most responsible and the one that will provide taxpayers with the fair and equitable tax reform they have been demanding for these many years.

What is clear to this individual, is that the winds of change are still blowing in Harrisburg and show no signs of subsiding, and while the issue is not an ill-deserved pay raise, the overall result could be the same--either the General Assembly pays serious attention to the will of the people of Pennsylvania or they will suffer the consequences.

Let your voice be heard loud and clear folks. Contact your State Representative and urge his or her support for House Bill 1275.












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