Senators address school property tax reform during seminar

Senate Bill 76, the property tax reform legislation, is expected to move in the coming weeks, according to Sen. Dave Argall (R-Schuylkill) and Sen. Mike Folmer (R-Lebanon), co-sponsors of the bill. The two senators spoke on Tuesday at the Pennsylvania Association of Realtors®’ Public Policy and Political Affairs Seminar in Harrisburg to give an update on the progress of the bill.“We’ve never been this close before,” Argall said. “We’re close to eliminating this archaic tax and we believe we have the votes in the Senate.”

Argall said school property tax reform is the hot-button issue in nearly every meeting he has with his constituents. “I hear about this even when I’m at a Cub Scout meeting,” he added.

“The Realtors® steadfast support has provided Senate Bill 76 with the extra oomph to help move this bill,” Folmer said. “This is a historic tax shift. And never has a bill been vetted as much as this. We’ve taken the arguments we heard against the bill and worked through a painstaking process to address these concerns. The bottom line is this bill works… the numbers work,” he added.

Senate Bill 76 proposes to eliminate property taxes dedicated to school districts and replace the funding by raising the personal income tax from 3.07 to 4.34 percent and increasing and broadening the sales tax from 6 to 7 percent to include previously exempted items. Senators have been working to address a few issues with the bill, which will be resolved with an amendment.

PAR has been engaged in an active campaign to support this bill. The association believes SB 76 will protect homeowners on fixed incomes and fairly tax consumers in a responsible way. Rising school property taxes have made it difficult or impossible for homeowners on limited incomes to pay their taxes.

Several myths concerning the legislation were addressed during the panel discussion. One myth is that there is a shortfall in school funding. “This bill gives a dollar-for-dollar replacement now and an increase next year. We are not giving schools as much as they would have received with their historic increases in property taxes but we have built-in increases every year,” he explained.

Chuck Liedike, RealReform76 campaign manager, reported that he has traveled to 31 counties within Pennsylvania and spoke to Realtors® and consumers about property tax reform. “Consumers are very excited about this bill.”

PAR recently launched a call-to-action, asking Realtors® to contact their state senators and urge them to support SB 76. More than 2,400 messages were sent to senators.

Folmer said other property tax reform bills shrink the school funding tax base. “SB 76 is a broader, fairer way to fund schools because more people will pay into school funding,” he explained. “This reform will be part of making Pennsylvania a more business-friendly state.”

“Senate Bill 76 completely changes how schools are funded and it scares many people,” Argall said. “Many people realize the current system is archaic, but it’s the system they know. Unwillingness to change may be one of the biggest hurdles we face in passing this legislation.”