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Southeast Senators Unveil Tax Reform Plan
to Help Ease Skyrocketing Property Taxes
HARRISBURG --
Seven Republican senators
representing Southeastern Pennsylvania today announced a
major tax reform package aimed at giving homeowners
"Independence from Property Taxes."
During a news conference at
the Valley Forge Convention Center, the senators said they
will push for legislation to lower property taxes, provide
additional tax relief to senior citizens, and enable school
districts, municipalities and counties to shift from
property taxes to income taxes. The package also includes
spending controls that will make state government live with
the same economic realities that taxpayers face on a daily
basis.
Taking part in the
announcement were Senator Joe Conti (R-Bucks), Senator
Robert Thompson (R-Chester), Senator Ted Erickson
(R-Delaware), Senator Dominic Pileggi (R-Delaware), Senator
Stewart Greenleaf (R-Montgomery), Senator John Rafferty
(R-Montgomery), and Senator Robert Wonderling
(R-Montgomery).
"After Pennsylvania's school
districts made their decisions about Act 72, my fellow
senators and I from the Southeast went to work and created
an agenda to achieve independence from school property taxes
once and for all," said Senator Conti. "The policies that
we're proposing are significant and achievable, and they'll
work not only in the districts that we represent, but across
the Commonwealth."
Senate Appropriations
Committee Chairman Robert Thompson said he and his
colleagues will issue an immediate call to action for the
General Assembly to take up the legislation as part of its
deliberations during the upcoming fall session.
"We realize there are many
specific issues that still must be resolved," Senator
Thompson said. "However, this package provides an overall
framework from which we can work."
Among the legislation in the
package are proposals to:
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Freeze
property taxes
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Replace
property taxes by shifting to more equitable taxes
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Provide
tax relief for seniors on fixed incomes
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Give
taxpayers greater control over local tax decisions
-
Limit
growth of state spending
The senators emphasized that
the package is aimed at providing relief to homeowners who
have seen their property taxes skyrocket in recent years.
"School
property taxes have increased by as much as 60% in my
district just during the past 5 years," Senator Wonderling
said. "We must act now to provide relief to residents who
are being taxed out of their homes."
Senator
Rafferty echoed that concern, noting that skyrocketing
property taxes are making home ownership impossible for
many, including young people and seniors. "We need to
control spending and look at a fairer way to fund our
schools," he said.
Senator Pileggi noted that
the package also requires spending controls at the state
level. Senate Bill 4, the "Taxpayer Fairness Act," would
hold state spending to the rate of inflation. It would also
set aside all surplus revenues into the state's Rainy Day
Fund for use in times of economic necessity. "Working
people across Pennsylvania have to live within a budget and
so should state government," Pileggi said.
According to the National
Conference of State Legislatures, 30 states already have
spending controls, revenue controls or both. Pennsylvania is
in the minority of states which have no spending or revenue
controls.
In addition to curbing
spending, the package also would give taxpayers more control
over the mix of taxes they choose to replace property taxes.
Senator Ted Erickson said
his bill would replace the regressive real estate property
tax as the primary source of funds for the school districts
by allowing school districts, as well as counties and
municipalities, to generate funds by adopting either an
Earned Income Tax (EIT) or a Personal Income Tax (PIT).
"The financial needs and the
income base in each school district will vary; therefore,
the level of taxation should be permitted to vary, and
taxpayers should have the final say in what new taxes are
implemented," Senator Erickson said.
The package also provides
additional help to seniors on fixed incomes. One bill,
supported by Senator Stewart Greenleaf, would use
anticipated slots revenue to expand the Property Tax/Rent
Rebate Program.
"Using this revenue, we can
provide property tax and rent rebates to about one million
older and disabled Pennsylvanians of modest income,"
Greenleaf said, noting that the current program serves about
330,000 citizens. My proposal would benefit those most
affected by property tax and rent increases—senior citizens
on modest fixed incomes."
Another bill sponsored by
Senator Tomlinson would freeze property taxes for senior
citizens. In addition, the legislation would apply
retroactively to tax years beginning January 1, 2004, which
would provide immediate property tax relief for our older
residents.
CONTACT:
CAROL MARAVIC (717) 787-6725
Video
 Conti
Erickson
Greenleaf
Pileggi
Rafferty
Thompson
Wonderling
Seven Republican senators representing Southeastern
Pennsylvania communities held a news conference at the Valley Forge
Convention Center on Sept. 14 to unveil a major property tax reform plan
designed to provide residents with relief from rising property taxes.
Taking part in the event were, from left, Sen. Bob Thompson, Sen. Rob
Wonderling, Sen. Ted Erickson, Sen. John Rafferty (at podium), Sen. Dominic Pileggi, Sen.
Stewart Greenleaf, and Sen. Joe Conti.
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