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Piccola Testifies on Plan Calling for Total Elimination of
Property Taxes
HARRISBURG -- Before
a hearing of the Committee on Legislation, a panel created for the Legislature's
Special Session on Property Tax Reform, Senate Majority Whip Jeffrey Piccola
(R-15) provided testimony today on his legislation -- Senate Bills 18 and 19 --
that completely eliminates all school property taxes for funding public
education.
Under Piccola's plan, school
property taxes in Pennsylvania would be eliminated. The revenues from school
property taxes would be replaced 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. The legislation also contains a
number of tax exemptions such as non-profits, rental properties, health
services, prescription drugs, manufacturing, public transportation, and
agriculture.
“Property taxes are among the
most regressive taxes imposed by government and are assessed regardless of
ability to pay. Our current system is antiquated with its heavy emphasis on
this tax, and that's why it makes no sense to continue to fund a 21st Century
education system with a 19th Century tax,” said Piccola.
“The governor continues to hold
out false hope to Pennsylvanians by promising reduced property taxes through
very doubtful gaming revenues. While the estimates of tax revenues from this
industry have varied from $250 million to $1 billion, the Commonwealth's school
districts have made it clear that this plan has failed by their sour reaction to
Act 72,” Piccola said.
“Although similar plans have
been introduced in the General Assembly, my legislation would build upon a
number of these initiatives, but at the same time would not raise any additional
taxes. It also would maintain a degree of local control by still allowing
school districts to impose a wage tax, which is important so districts can still
go above the benchmark of state funding to provide for the level of pupil
spending that a district desires,” he said.
“Shifting the lion's share of
the school funding burden to the state would also force government to take a
closer look at the performance and costs of our schools, and the Legislature
would need to pay more attention to the mandates they impose. More attention
would also be paid to addressing the inequities that may exist in regard to
funding and school spending,” added Piccola.
“We need a bold overhaul of our
tax system once and for all, and it needs to be in the form of total elimination
of all school property taxes and replacing them with a fairer, broader, and
lower sales tax. Reform to this antiquated taxing system is necessary for all
of the Commonwealth's hardworking families and employers,” he said.
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