Pennsylvania House OKs property tax reduction

By Mark Scolforo
Associated Press

HARRISBURG — Pennsylvanians would see billions in lower school property taxes under a proposal that made it out of the state House on Wednesday and into the hands of the Senate.

The House voted 105-86 for what supporters called the most significant action in decades on relief from the state’s widely reviled property taxes.

“Today we begin a journey that has come 1,000 miles, and we hope to conclude that journey over the next six weeks,” said Majority Leader Dave Reed, R-Indiana. He said the vote keeps the issue in the mix during the Legislature’s most intense period of the year, ahead of the June 30 budget deadline.

The legislation would raise about $4.2 billion by increasing the sales tax rate in most of the state from 6 percent to 7 percent and the personal income tax rate from 3.07 percent to 3.7 percent. That money, combined with existing property tax relief from gambling, would approach $5 billion.

Opponents warned that short-term savings will eventually be lost when schools return property taxes to current levels.

“Find one dedicated funding source in the history of this commonwealth that has not been invaded and redirected for other purposes,” said Rep. John Maher, R-Allegheny, who voted no. “There is a 100 percent track record that these dedicated funding streams do not remain dedicated.”

Voters in his district have told him they want to see a shift away from reliance on property taxes, said Minority Whip Mike Hanna, D-Clinton.

“We’ve been working for decades to get property tax reform, and this is the first opportunity in a long time to bring relief to the homeowners of Pennsylvania,” Hanna said.

Gov. Tom Wolf, who has proposed a different plan that would send more money into urban schools and other areas with the highest tax rate, has said he considers the House approach a start and is waiting to see what might make it onto his desk.

His plan also would provide money to lower income people who rent their homes and would prevent districts with substantial cash savings from raising taxes.

In the Senate, which passed a pension-funding bill Wednesday that has been its top priority, the property tax bill’s prospects are uncertain.

Senate Majority Leader Jake Corman said many of his members support action on property taxes.

“Any type of property tax relief has to have some sort of control on the property taxes from going back up,” Corman said. “I applaud them for getting something out, but we’ve got a ways to go.”

Thirty-four Democrats joined 71 Republicans in voting for the bill, including members of the Democratic leadership team and some who represent districts in Philadelphia. The 41 “no” votes from the GOP included Speaker Mike Turzai, R-Allegheny.