Property Tax Elimination Bill May Get Senate Vote Tuesday

UPDATE: Vote To End Property Taxes In Pa. Delayed

A bill that would eliminate property taxes may be considered in the Pennsylvania state Senate as early as Tuesday, Senate President Pro Tempore Joe Scarnati told the Associated Press.

The legislation, called the Taxpayer Relief Act, would completely eliminate $14 billion in school property taxes. The revenue would be replaced with higher state sales and income taxes.

If the measure were to pass and be signed by the governor, districts would get a regular inflationary increase but would have to get referendum approval for an increase beyond that.

The Pennsylvania School Boards Association has come out in opposition to the bill.

“Referendum ties the hands of locally elected school boards by eliminating their ability to build a budget, pay for mandated costs and make tax decisions based on their financial needs. School districts, already struggling to maintain their financial operations in light of the budget impasse, will face critical, long-term fiscal distress,” the PSBA said.