Property Tax Reform Bill Passes Senate; Will Provide Historic Relief to Seniors

HARRISBURG—Acting to provide immediate property tax relief to older Pennsylvanians and homeowners, the state Senate yesterday approved sweeping legislation to double the size of the Property Tax and Rent Rebate Program to senior citizens and give local voters new options to restructure their school tax systems, according to Senator James J. Rhoades (R-29).

House Bill 39 passed the Senate by a 39-10 vote.

"Pennsylvanians want property tax relief. As difficult as the process has been, this is at least an initial step to address the issue," Rhoades said. "We acted to expand the Property Tax and Rent Rebate Program now so that we can increase benefits and add 281,000 additional senior citizens to the program-- this year."

House Bill 39 would also double the size of Pennsylvania's nationally recognized Property Tax and Rent Rebate Program, by increasing payments $147 million and enabling 281,560 additional low income seniors to receive tax relief, noted Rhoades.

The Property Tax and Rent Rebate Program expansion would ensure that seniors with incomes up to $25,000 are eligible and increase the maximum rebate amount to $650. Under the current program, only seniors earning below $15,000 are eligible and the maximum benefit is $500.

Rhoades added that the bill would also extend the opportunity for local voters to reduce property taxes by approving increases in school district Earned Income Tax (EIT). School boards will have the option to approve this shift in 2006. If they do not, voters will decide the question through referendum at the 2007 primary election.

"The backend referendum is essential to any property tax reform proposal," said Rhoades. "We must control school district spending and tax increases by giving taxpayers the option to accept or to reject specific increases that are proposed."

The measure now goes to the House of Representatives for consideration.

Additional information is available online at: www.pasenategop.com or www.senatorrhoades.com