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Piccola Unveils Major Plan for Eliminating School Property Taxes
HARRISBURG -- Having
extensively traveled the state, meeting with Pennsylvania taxpayers and other
interested parties, Senator Majority Whip Jeff Piccola (R-15) called today for
the elimination of the school property tax while funding public education
through a lower, but broader, Sales and Use Tax.
Under Piccola’s plan, school
property taxes in Pennsylvania would be completely eliminated and offset by
reducing the current 6 percent Sales and Use Tax rate to 5.7 percent and
broadening its base to include food (except food stamp purchases), clothing, and
some services.
“Pennsylvania taxpayers
annually pay about $8.3 billion in school property taxes. They are among the
most regressive taxes imposed by our government, and they are assessed
regardless of the ability to pay,” Piccola said. “That’s why the plan I’ve
proposed focuses on abolishing this tax once and for all – because we cannot
continue to fund a 21st Century education with a 19th Century tax.”
“Although similar plans have
been introduced in the Legislature to reduce property taxes, my plan would build
upon a number of these initiatives and at the same time would not raise any
additional taxes. By reducing the Commonwealth’s 6 percent Sales and Use Tax to
5.7 percent, we can also improve our competitiveness with other states,
particularly since others impose local sales taxes,” Piccola said.
“Shifting from a local property
tax to a state Sales and Use Tax will mean that state government will have a
more vested interest in the performance and costs of schools. This will give a
greater incentive to the Governor and General Assembly to eliminate onerous
mandates on public education. This will also place the Commonwealth in a better
position to address the inequities that may exist in the state with regard to
school spending,” added Piccola.
The average Sales and Use Tax
rate for states is currently 4.85 percent. However, 34 other states currently
allow local sales taxes, making the average rate 6.73 percent. Pennsylvania’s
only local option Sales and Use Taxes are in the counties of Philadelphia and
Allegheny.
Piccola’s school property tax
elimination plan would include the following exemptions: agriculture, charitable
organizations, contract farming, dental/doctor visits and services, food stamp
purchases, gasoline and motor fuels, government units, health services, hospital
visits, manufacturing, non-profit educational institutions, prescription drugs,
public transportation, religious and veterans’ organizations, volunteer
fireman’s organizations, and youth sports programs.
“I have spent considerable time
listening to Pennsylvanians, economists, government officials, and colleagues on
the merits and demerits of our state’s tax structure. It is hard to disagree
that our system is inadequate and antiquated, with its heavy emphasis on the
property tax. My plan to finally eliminate this tax will provide a responsible,
meaningful solution and is a major step towards reforming a very complicated and
burdensome problem for our hardworking families and employers,” said Piccola.
 
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Senate Majority Whip
Jeff Piccola spoke to reporters in his office on Aug. 22 to offer details on
his legislation to eliminate school property taxes.
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