House Finance Committee to Hold Hearing on Saylor Property Tax Reform Measure
HARRISBURG – The House Finance Committee will hold a hearing Tuesday looking into the details of
House Bill 860, school property tax reform legislation recently introduced by House Education Committee Chairman Stan Saylor (R-York).
House Bill 860 is dollar-for-dollar tax shift legislation that dramatically cuts property taxes for ALL Pennsylvania property owners, not just a select few. The measure also has a built-in mechanism to ensure the tax cuts stay in place and suppress school district property tax increases in the future.
“For the first time, the House will debate and consider real school property tax reform early in the session – not close to an election – and go through a full discussion of the property tax issue, amendment process and floor vote,” Saylor said. “Every dollar of new revenue under House Bill 860 will be returned to the taxpayer in school property tax relief, whereas the governor’s plan merely hikes taxes for additional general fund spending.”
House Bill 860 would change the state’s Personal Income Tax (PIT) rate from 3.07 to 3.7 percent, and the Sales and Use Tax (SUT) from 6 percent to 7 percent. The PIT funds generated from this shift would be used to drive down school district millage rates immediately. The SUT funds generated from the tax shift would directly go to homeowners through homestead and farmstead exclusions.
To prevent future school district tax increases from wiping out these deep property tax cuts, after school property tax millage rates are initially reduced as mandated by the legislation, school districts are still limited in rate increases by the Act 1 index. However, as PIT funds naturally grow as the economy grows, the additional PIT dollars received by school districts are used to offset the allowable Act 1 index increases.
“This plan provides $4.9 billion for statewide tax relief, which would result in 40 percent to 60 percent cuts in school property taxes for most homeowners, depending on school district and current tax bill,” Saylor said. “And, as the economy grows PIT receipts, and thus school district millage reductions, naturally increase, ensuring that these school property tax cuts stay in place.”
“I have long been a strong proponent of eliminating property taxes completely. As we work towards total elimination, taxpayers need relief as soon as possible and this legislation can provide that relief.”
The House Finance Committee will convene Tuesday, April 14, at 9:15 a.m., for a public hearing on House Bill 860. The hearing will be held in Room G-50 of the Irvis Office Building.
Representative Stan Saylor
94th District
Pennsylvania House of Representatives
Media Contact: Charles Lardner
717.260.6443
clardner@pahousegop.com
www.RepSaylor.com /
Facebook.com/RepSaylor