SENATE DEMOCRATS TAKE THE LEAD ON TAX RELIEF


Mellow

          HARRISBURG, September 28 -- Combining the best elements of the major property tax relief proposals before the General Assembly, Senate Democrats introduced the first comprehensive legislation of the Special Session on Tax Reform

          “A key element of our proposal is setting aside partisan differences and approaching the issue in a true spirit of compromise,” said Democratic Leader Sen. Robert J. Mellow, the prime sponsor of the Senate Bill 11. “We’ve retained the critical element of taxpayer spending controls while giving every homeowner the opportunity for property tax relief.”

          Demonstrating their commitment to the “Mellow Compromise,” every Democratic Senator stepped forward to co-sponsor the bill.

          The essential elements are:

  • The property tax relief plan is initially mandated for all districts.

  • After the Secretary of the Budget advises districts of their share of gaming revenue, school boards may choose to opt out.

  • If the school board opts out, voters in that district will be given the opportunity to vote on a two-part referendum – whether to accept gaming money, and whether to institute taxpayer spending controls.

  • Voters can chose either or both elements.

  • There is no mandatory earned income tax increase.

  • Voters in districts that accept one of the two elements – gaming money or taxpayer spending controls – will be given the option to use EIT or Personal Income Tax revenue to reduce property taxes.

  • The level of the optional EIT increase will be determined by the school board.

  • Voters in the 111 districts which already have opted in to Act 72 will receive the same level of tax relief they would have gotten with an EIT increase, but gaming revenue will make up the difference (expected to total $29 million)

          “We’ve addressed the Governor’s request for mandating tax relief, balancing it with the recognition that some communities may choose not to accept gaming revenue,” Mellow said. “There simply is not a one-size-fits-all solution to property tax in every community.”

          Mellow said the plan gives equal opportunity for relief to homeowners across the state while allowing for local control

          “After more than a year of intense, substantive debate across the Commonwealth, the Special Session gives us the opportunity to put what we’ve learned into action,” Mellow said