Hitting the Ground Running, House Committees Tackling the Issues: Property Tax Relief/Reform and Reducing Size of the Legislature on the Agenda Next Week The House returns to session on Monday, Sept. 23, to debate and vote on various issues of importance. On Tuesday, the House State Government Committee will debate and vote on two bills, both sponsored by Speaker of the House Sam Smith (R-Jefferson/Armstrong/Indiana), aimed at reducing the size of the General Assembly. House Bill 1234 would reduce the size of the state House of Representatives from 203 members to 153. House Bill 1716 would reduce the state Senate from 50 to 38. Both initiatives require an amendment to the state’s constitution. Article II, Section 16 of the Pennsylvania Constitution divides the Commonwealth into 50 senatorial districts and 203 representative districts. Article XI, Section 1 allows amendments to the constitution to be proposed in the Senate or the House of Representatives. Such an amendment must pass the General Assembly in two consecutive sessions and is then placed on the ballot as a referendum question to be approved or disapproved by the citizens of Pennsylvania. If a majority of voters vote in favor of the question, the constitution will be amended. Can you spell “Relief?” The property tax question… An issue for many Pennsylvanians, property tax relief has been elusive to nail down. Over the years, while there have been a wide variety of property tax proposals, members discovered there are many areas where property taxes are not a major issue, and an over-arching, one-size-fits-all approach won’t work. Local tax bases vary widely throughout the state and shifting the current taxing structure to generate revenues to support the state’s education mandate has proven to be very challenging. Also, the diverse philosophical differences existing across the Commonwealth have contributed to a lack of support for comprehensive property tax reform measure. On Monday, the House Finance Committee will discuss and vote on a four-bill property tax relief/reform package: House Bill 1189 (Rep. Seth Grove, R-York County) provides school districts with a menu of taxing options and affords those districts using these options the ability to tailor property tax relief specific to their district. Any tax shift occurring under this new authority is required to be used as a dollar-for-dollar reduction, or elimination, of property taxes. House Bill 125 (Rep. David Maloney, R-Berks County) amends the constitution by increasing the homestead exclusion to include 100 percent of the assessed value of the homestead property. House Bill 1677 (Rep. Doyle Heffley, R-Delaware County) aligns statutory provisions with the constitutional amendment language contained in House Bill 125. Combined, House Bill 125 and House Bill 1677 provide school districts with the ability to eliminate property taxes. House Bill 1685 (Rep. Kerry Benninghoff, R-Centre/Mifflin counties) will amend the Taxpayer Relief Act by allowing a school district to increase the Earned Income Tax (EIT) for property tax relief without the voter referendum requirement; although the school district can seek voter approval if desired.
Posted on: Sat, 21 Sep 2013 11:41:45 +0000
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