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Harrisburg, September 28, 2005 - State Sen. J.
Barry Stout is supporting a proposal to bring all four legislative
caucuses together for property tax relief that results in cuts,
control, and choice for Pennsylvania’s homeowners.
“The people of Pennsylvania don’t care how we do it,”
said Stout (D-Washington/Greene). “They just want it done. Bringing
property tax relief to homeowners in southwest Pennsylvania is one
of my top priorities, and I am supporting this proposal because I
believe it has the best chance for quick consideration and passage
by the legislature.”
Introduced by Senate Democratic Leader Robert J.
Mellow, Special Session Senate Bill 11 incorporates taxpayer
demands, concerns from House and Senate Democrats and Republicans,
principles expressed by Gov. Ed Rendell, and lessons learned from
previous initiatives.
The plan would:
*Mandate school district participation, but permit
school boards to opt-out of the program;
*Allow voters to override the school board via a vote
at the next municipal election;
*Eliminate the 0.1 percent Earned Income Tax qualifying
contribution;
*Assure school district spending controls through voter
referendum;
*Slash the gaming reserve fund requirement of $400
million to $150 million;
*Allow local flexibility for school board and voters to
“go further” and enact local tax shifts if they want more property
tax relief than gaming revenue will provide;
*Retain the distribution formula that drives tax relief
to homeowners; and
*Hold harmless those districts that have already opted
in via Act 72.
The compromise plan features several suggestions made
by the Senate Democrats in June, including the elimination of the
0.1 percent Earned Income Tax requirement and lowering the reserve
fund minimum.
The proposal also would allow school districts some
latitude to express their philosophical concerns about using gaming
revenues to provide property tax relief. However, final authority
for accepting or rejecting gaming revenues would lie with the
voters. School districts would also be empowered to enact further
property tax relief.
“With this plan, Pennsylvania voters finally have the
power to decide for themselves and make their voices heard,” said
Stout. “The people will be able to say yes to property tax relief
and no to future property tax increases.”
The 2005 Property Tax Reform special session kicked off
today with the governor addressing members of the House and Senate.
Rendell called on the General Assembly to fix the Homeowner Tax
Relief Act (Act 72) and guarantee property tax relief for every
Pennsylvania homeowner, no matter where they live.
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