Rep. McIlvaine Smith exploring ways to expand property tax relief

Right now, property taxes are the only source of local-level funding our public schools system. Funding schools is a burden that is too heavy for homeowners to carry alone.

On Jan. 17, the House took a historic step to address this situation by unanimously passing H.B. 1947, which I co-sponsored. The bill would set up the process to amend the state constitution to allow for the complete elimination of property taxes on primary homes and farms.

The legislation must be passed by the General Assembly in two consecutive legislative sessions, then approved by voters. That means the earliest this constitutional change could take effect is 2010.

In the meantime, I continue looking for ways to reduce your school property taxes now. One bill would increase the state sales tax to cut property taxes by more than $700 million. That’s in addition to the anticipated $1 billion in relief that will come from gaming revenues. There’s also a proposal that would increase both the state Personal Income Tax by 0.22 percent and the sales tax by 0.5 percent to shift the burden of funding schools away from homeowners.

I’m looking forward to working with my colleagues to craft legislation that will solve the problem while protecting the interests of Chester County residents. As always, I welcome your feedback about what you’d like to see happen with property tax reform.