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Greenleaf Proposal Would Aid Seniors with
Remaining Act 72 Revenues
HARRISBURG -- Sen.
Stewart J. Greenleaf is proposing that income-eligible senior citizens benefit
from the anticipated slot machine revenues that will not be utilized by the
majority of the state’s school districts.
According to the Pennsylvania
School Boards Association, just 111 out of 501 school districts across the state
have voted to participate in the property tax relief plan established under Act
72 of 2004.
“My proposal would direct the
remainder of slot machine revenues -- left over after the Act 72-participating
school districts receive their share -- toward the expansion of the Property
Tax/Rent Rebate program,” Greenleaf said. The senator noted that by
piggybacking on the Lottery-funded rebate program with the gambling revenues
from slots, income eligibility could be expanded and rebates could be
significantly increased.
If slots revenues reach the
approximately $500 million needed for Act 72 tax relief to take effect for the
school districts that have opted in, the remainder would be applied to the
Property Tax/Rent Rebate program and income eligibility could be doubled from
the current $15,000 per household to $30,000. Projections indicate that the
maximum rebate could increase from the current $500 to $1,200, while the minimum
rebate would be $180. The rebates would be distributed based on a sliding scale
of income. Eligibility requirements -- except for income -- would be the same
as for the current Lottery-funded rebate program -- citizens 65 or older; widows
and widowers 50 and older; and permanently disabled individuals between the ages
of 18 and 65.
Greenleaf said that,
depending on the amount of slots revenues, he would like also to implement a
property tax freeze for citizens 65 and older with a household income of $40,000
or less. He noted that he has introduced legislation capping senior property
taxes for several sessions. This session, the Greenleaf property tax freeze
measure is Senate Bill 72 -- not to be confused with Act 72 of 2004. It is
estimated that the freeze proposed under Senate Bill 72 would benefit more than
900,000 older homeowners and cost school districts about $70 million.
“Money from Act 72 could be
directed at reimbursing the school districts for the loss of local tax dollars
occasioned by capping property taxes on the homesteads of income-eligible senior
citizens,” Greenleaf said. “Senior citizens on modest, fixed incomes have
been at the crux of property tax relief efforts for as long as the Legislature
has been discussing property tax reform. The revenues that remain after the
opted-in school districts receive their share of the Act 72 funding present an
opportunity to provide relief to older Pennsylvanians,” Greenleaf said.
The senator noted that, under
his expansion plan for the rebate program, older citizens who rent would also
benefit, as well as permanently disabled individuals.
“This program has been operating successfully
for many years, so my proposal would not require many new administrative costs,”
Greenleaf said. During 2003, the Property Tax /Rent Rebate program served
331,095 claimants. Under Greenleaf’s proposal, more than one million citizens
would be eligible to participate.
Greenleaf Statement on Senior
Citizen Benefit Proposals
In light of the fact that
just slightly over 20 percent of the state’s 501 school districts have voted to
opt in to Act 72 of 2004, I am proposing that the Legislature take this
opportunity to assist more fixed-income senior citizens with affording their
property taxes and rents.
My proposal deals with the
anticipated slots revenues remaining after the 111 school districts that have
voted to participate have received their share. I am planning to offer
legislation that will utilize those revenues to expand the Property Tax/Rent
Rebate program currently supported by State Lottery proceeds.
By piggybacking on this
existing program and by using slots revenues that will not be going to the
majority of the state’s school districts under Act 72, we can provide property
tax and rent rebates to about one million older and disabled Pennsylvanians of
modest income. The current Property Tax/Rent Rebate program serves about
330,000 citizens.
Based on $500 million in
revenue, this proposal could raise the Property Tax/Rent Rebate income
eligibility from its current $15,000 to $30,000 per household, and we could
increase the maximum rebate from $500 to $1,200. As with the current program,
those eligible would be 65 or older, as well as widows and widowers 50 and
older, and permanently disabled individuals between the ages of 18 and 65. Just
as with the current program, rebate amounts would be granted on a sliding income
scale.
Depending upon the amount of
slots revenues, I would like also to utilize Act 72 revenues to fund my
longstanding legislation for a property tax freeze on the homes of those 65 and
older with a household income of $40,000 or less. This proposal, contained in
Senate bill 72, would benefit more than 900,000 older homeowners by capping
their property taxes at current levels. Act 72 funds could be used to reimburse
school districts for the approximately $70 million that implementation of a
freeze would cost.
My proposals would benefit those most affected
by property tax and rent increases -- senior citizens on modest fixed incomes.
The slots revenues under Act 72 were intended for property tax relief, and the
fact that so many school districts elected not to use the anticipated revenues
gives us the opportunity to direct relief toward those who need it most.
 
# # #
At a June 6 news conference in the Capitol Media Center, Sen.
Stewart Greenleaf announces legislation that would
direct some slot machine revenues toward the
expansion of the state's Property Tax/Rent Rebate program.
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