2/22/17
by News Department on 02/22/17Wolf's Tax Bill...
A proposed property tax relief bill could have a negative impact on school districts.
The property tax relief bill (HB/SB 76) is proposed to eliminate property taxes, while increasing both the personal income tax from 3.07 percent to 4.95 percent, and the sales and use tax from 6 to 7 percent.
Under the new bill, school districts would no longer collect school real estate taxes as funding for school districts would come from the increase in these taxes and districts would receive an amount equal to their current collection rate and may be adjusted yearly at a rate equal to a cost of living increase.
The bill states that school districts can issue real estate tax bills for current debt they must pay each year, as school district debt are bonds that were issued for school districts and most often are payable over 20 years.
Only 2 percent of school districts in the state would have no school district real estate property tax bills, and some school districts would continue to receive no reduction in taxes because their yearly school district debt payment is more than their collection of real estate taxes.
However, this bill is not a total property tax elimination bill, as residents would still continue to receive a real estate tax bill for their county and township/borough taxes.
School district real estate tax bills are issued July 1 of each year and are payable no later than Dec. 31.
