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FOR IMMEDIATE RELEASE |
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CONTACT: Amy
Giancoli Hartman |
State Rep. Frank
Dermody |
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Dermody reintroduces bill to eliminate property taxes
HARRISBURG, March 6 -- State Rep. Frank Dermody, D-Oakmont, has reintroduced legislation to eliminate the school property tax.
“The property tax has become an onerous burden for many homeowners," Dermody said. "We've taken a few initial steps to relieve some of that burden through slots gaming and the revenues the industry will generate for the state, but it's not enough. It also doesn't address the underlying problem, which is how we pay for public education in Pennsylvania.
"Eliminating school districts’ ability to levy property taxes on residents would force the state to take a serious look at how we pay for our schools and develop a better way to do that. This is the first step in fixing a system that is deeply flawed and finding a way to better address the burden property taxes place on residents and school districts."
Dermody has been advocating to eliminate the property tax since 1996. His proposal has passed the House in previous sessions, but failed to be considered in the Senate.
His proposal is patterned after a 1993 Michigan law in which that state eliminated school property taxes in order to enact a more equitable tax plan to pay for schools. After Michigan's legislature eliminated property taxes, the voters approved new funding sources for schools, including higher sales and cigarette taxes. Property taxes also were included in the mix, but at a much lower rate.
"We have a responsibility to provide a thorough and efficient system of public education for our children,” Dermody said. “Eliminating property taxes to pay for schools would provide an opportunity for real tax reform and a better education for our children."
His measure (H.B. 440) is being considered in the House Finance Committee.
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