Pashinski introduces Universal School Property Tax Relief Rebate bill

H.B. 2119 would provide $800 rebate to all school property taxpayers

HARRISBURG, Dec. 9 – State Rep. Eddie Day Pashinski, D-Luzerne, introduced legislation today to provide $800 in school property tax relief to every property taxpayer in Pennsylvania.

“I am proud to formally introduce my practical and balanced Universal Property Tax Relief Rebate program to provide school property tax relief to working families and seniors who are struggling to stay in their homes,” Pashinski said. “It’s clear that a new approach to providing tax relief is needed following decades of failed attempts to fairly replace the needed $14 billion to completely eliminate school property taxes. I strongly believe this bill is a great start to begin providing that relief.”

Under Pashinski’s H.B. 2119, an $800 rebate would be available to all school property taxpayers, as well as a $50 rebate for renters. The plan would be fully funded through a small Personal Income Tax increase to 3.49% and the expansion of sales tax to certain luxury items and services.

“Property Tax Relief is needed in communities of all shapes and sizes across the commonwealth,” Pashinski said. “That’s why I am grateful and encouraged that my bill already has support from a bipartisan group of 18 representatives from urban and rural communities across Pennsylvania.”

More specifically, the approximately $2.8 billion in replacement revenues to pay for the plan would come from an estimated $2.05 billion in additional PIT revenue and $765 million from the expansion of the current sales and use tax to things such as professional sports tickets, non-health related personal care services and cosmetic services to buildings and dwellings.

“I believe this is the most balanced and fair plan put forth that provides real relief to property taxpayers without penalizing the very people we are trying to help,” Pashinski said. “For example, in Luzerne County where the median property tax bill is just over $1,500, many homeowners would see their property taxes cut by around 50%. Should this program be successfully implemented, it could point us in the right direction for how to provide additional property tax relief in the future.

“These numbers demonstrate that this plan is practical, fair and would actually provide the relief where it is most needed,” Pashinski said. “Instead of funding tax relief from the bank accounts of the very people who need the help the most, this Property Tax Relief Rebate program would utilize untapped sales tax revenue on luxury items and services – without increasing the current sales tax rate or expanding the sales tax to essential items like food and clothing.”

More details on the plan and how it would be funded is available here.

House Bill 2119 now awaits referral to a committee.