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FOR IMMEDIATE RELEASE |
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State
Rep. Mike Carroll |
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To: Editor, Community Express
From: State Rep. Mike Carroll, D-Luzerne/Monroe
RE: Property tax relief for Pa. homeowners
Revenue from slots gaming will reach the level needed to provide every Pa. homeowner with property tax relief this summer. The special property-tax relief fund now contains over $576 million in slots proceeds, enough for the state to distribute the money for tax cuts. This relief expands on the progress made last year, in which more than half a million seniors received relief from the gaming revenues.
All homeowners will begin receiving the tax cuts to offset the cost of their property taxes after the school year ends. The amount will vary by school district. With the current fund balance, residents can expect to receive no less than:
Pittston Area, $124
Wilkes-Barre Area, $200
Pleasant Valley, $434
Pocono Mountain, $392
Residents will be able to receive even more tax breaks as the revenue from gaming sites grows. However, slots revenue is only one way to provide tax relief: there is much more we can accomplish to provide meaningful property tax reform in Pennsylvania.
House Democrats’ have introduced a package of bills to achieve that goal. I support and voted for legislation (H.B. 1947, passed the House) that would amend the state constitution to allow the legislature to completely eliminate property taxes on primary homes and farmsteads. The constitution currently limits property tax relief for homeowners to 50 percent of the median assessed value of residential property in each school district. The bill would remove the barrier to eliminating property taxes by increasing the homestead exemption to 100 percent.
In order to amend the state constitution, this bill must pass both the House and Senate in two consecutive sessions and then be approved by voters. The earliest the amendment could go to voters for approval is 2009.
While I know people want action quickly on this issue, the change to the constitution must be made in order to fully eliminate property taxes in Pennsylvania. The legislature is also exploring ways to provide a measure of tax relief more quickly while we go through the constitutional amendment process. I support H.B. 1600, which would cut school property taxes on homesteads immediately by increasing the Personal Income Tax rate to 3.29 percent and increasing the sales and use tax rate by 0.5 percent.
Paired with the anticipated $1 billion in revenue from gaming, these bills would enable all homeowners to see significant and immediate relief. The House will continue debating these and other measures during the upcoming session days to enact laws that would finally rid Commonwealth residents of this burdensome tax.
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