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

HARRISBURG—Acting to provide property tax relief to older Pennsylvanians and homeowners, the state Senate has approved 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 today by a 40-9 vote.

According to Rhoades, the conference committee on House Bill 39, worked together on a final compromise measure that can pass both the Senate and the House of Representatives. Since April 3rd, the bi-partisan committee has held seven public meetings to air out details of the plan.

"Both Republicans and Democrats put aside political differences to forge a consensus on this important issue," said Rhoades. "Together, we took the necessary steps to achieve a common goal -- how to best target resources to the people who need it the most."

In addition, House Bill 39 would also more than double the size of Pennsylvania's recognized Property Tax and Rent Rebate Program, by increasing payments $200 million and enabling 422,062 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 $35,000 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). Homeowners could see on average a 27% reduction in their property taxes before gaming revenues are available. Once gaming revenues materialize, homeowners could see an average property tax reduction of 50%.

Rhoades went on to say that House Bill 39 also makes the backend referendum spending controls mandatory for all school districts.

"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.senatorrhoades.com or www.pasenategop.com