There is no “Holy Grail” of property tax reform. Any property tax reform measure will involve shifting the tax levy from one type of tax to another – there’s no free ride. But there are ways to fund our schools and to ensure a better education for our children that are fairer and more effective than property taxes. Many Pennsylvanians lose their homes and a lifetime’s work to sheriff’s sales each year because they can no longer afford to pay their property taxes. Senior citizens on fixed incomes are increasingly forced to sell their homes because of unrelenting increases in their tax burden. Young families cannot afford to purchase a home because the per-month property tax escrow is simply too high. Multigenerational family farms are being sold piece by piece to pay property taxes, devastating Pennsylvania agriculture. School districts in areas of the state with limited population and no commercial tax base are in distress and are unable to afford to give their children a quality education. Job losses, outmigration, and abysmal state economic performance caused by burdensome property taxes are devastating Pennsylvania’s economy. Our current system of school funding is crumbling. This decay has been occurring for many years and continues to escalate. Home foreclosures and tax sales are occurring at an expanding rate and the home market is at a standstill. The opportunity to fund education from a statewide source is rapidly vanishing as relentlessly rising property taxes outpace available revenue. This will have major implications for school districts statewide. It can no longer be ignored or diminished. Replacement of the school property tax must be accomplished now. The Pennsylvania Independent Fiscal Office conducted an analysis of the Property Tax Independence Act and reached these conclusions: • The analysis projects that school property taxes will increase more than $4 billion from the current replacement level of $10.063 billion to $14.188 billion by 2017. • The report projects that in year five after enactment HB/SB 76 will save $1.152 billion annually in replacement revenue compared to the growth of property taxes if that system remained in place. • The elimination of school property taxes increases the disposable income of property taxpayers. • The analysis indicates that HB/SB 76 will cause home values to increase, on average, by more than 10% statewide. • Working age homeowners realize a tax cut. The analysis finds that the increase in federal income tax (through lower itemized deductions), state income tax, and sales tax is more than offset by the reduction in property taxes.• Retired homeowners realize a significant reduction in taxes. The analysis finds that the property tax reduction easily offsets any increase from the higher sales tax. • Benefits would also accrue to home builders, home developers, and other land owners who convert current land holdings into new housing. • The elimination of property taxes would significantly reduce the property tax share and would clearly increase the attractiveness of the Commonwealth for business location and expansion. You can request a copy of the IFO analysis by phoning (717) 230-8293. Spread the word. Talk to your family, friends and neighbors. Grassroots initiatives depend on the voices of as many concerned taxpayers as possible. Email, write or visit your elected PA House and Senate Representatives. Encourage them to join the fight and co-sponsor HB/SB 76. Feel free to copy and circulate this brochure. Follow the web links below for more information or scan the QR Code with your smartphone. Get Informed. Get Involved. Because no tax should leave you homeless. ptcc.us https://facebook/groups/pataxpayers youtube/watch?v=qle06alZcFA
Posted on: Sun, 27 Jul 2014 13:35:19 +0000
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