HARRISBURG, June 24, 2015 – State Sen. Christine M. Tartaglione added her strong and enthusiastic support today to a new proposal that would eliminate school property taxes for millions of homeowners throughout Pennsylvania and significantly reduce many taxes in Philadelphia.
The Senate Democratic Caucus introduced the PA Home Rebate Plan today.
“Philadelphians and taxpayers throughout the commonwealth have been looking for a good tax-reduction plan like someone lost in a desert,” Tartaglione said following this morning’s news conference in the Capitol. “The PA Home Rebate Plan is more than a mirage; it promises to be a wellspring of long-term relief for over-taxed Pennsylvanians everywhere.”
Under PA Home Rebate, property taxpayers would be eligible for a 100 percent rebate of their school property tax bills up to $1,990, while renters would receive rebates of $500 if their income is less than $50,000. The rebates would be available annually.
In Philadelphia, funds will be used for the reduction of a mix of wage, sales and use, cigarette and property taxes.
“Not only does this sound good, the state’s Independent Fiscal Office has verified its positive impact,” the senator said.
The IFO said the total cost of the property tax rebate portion of the program is estimated to be $3.945 billion, and the cost of the rent rebate program will be $400 million.
The PA Home Rebate will be funded by a 0.78 percent increase in the Personal Income Tax, a 0.6 percent increase in the Sales and Use Tax, a $1-per-pack increase in the state cigarette tax, and a 40 percent tax on other tobacco products.
“Most school districts in Pennsylvania use state funds and rely heavily on the property tax to balance their books, but Philly heavily relies on wage and other taxes to pay for basic education,” Sen. Tartaglione said.
“PA Home Rebate includes a balanced distribution for our great city and it gives us the flexibility to reduce property, wage and cigarette taxes to finally deliver relief. “
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