Please share this with every Pennsylvania homeowner that you know!

On Tuesday, June 5, Representative Sam Rohrer released details of soon-to-be-introduced legislation to ELIMINATE school property taxes and completely redefine education funding to bring it into the twenty-first century. We should see a formal announcement in the very near future.

The new legislation is officially named “The School Property Tax Elimination Act of 2007” but is still known familiarly as the Plan for Pennsylvania’s Future.  While it is similar in most respects to the plan released last year, there have been a few substantial changes that make it more acceptable to both parties and increase greatly the chance of its enactment.

Briefly, here are the details of the primary legislation:

- ELIMINATES all school property taxes on primary residences (homesteads/farmsteads) and local school income taxes and local school nuisance levies such as per capita and occupational taxes.  Property taxes will be reduced by 25% per year with complete elimination by the fourth year after enactment.
- Finances schools by:
· Broadening the state sales tax to include most services at 6%, and clothing and processed food at a minimal 3% with some exceptions for basic living expenses (listed below).
· Increasing the state income tax by 0.55%
- Funds schools from a dedicated Education Operating Fund separate from the general fund
- Balances inequities in district-to-district funding.  Every school will receive the resources it needs regardless of the local ability to pay.
- Establishes a cost control methodology for greater efficiency.
- Eliminates unfunded mandates.

Exemptions from the sales tax for consumers include fresh fruit, fresh produce and fresh meats; milk, bread, eggs and cheese; food stamp and WIC purchases; all residential utilities – gas, electric, water, heating fuels; health services – hospitals, doctors and dentists, and all prescription drugs; public transportation.  In addition, exemptions for businesses include core business to business services – accounting, engineering, research, computer and legal services; sale for resale; advertising; trucking; manufacturing wholesale purchases.

There is a companion bill that calls for a constitutional amendment that will forever ABOLISH school property taxes on primary residences and allow for taxation on commercial properties at 50% of their original rate.

Those are the highlights of the Plan.  The South Eastern Tax Reform Coalition is a member of the PA Taxpayers Cyber Coalition (PTCC). If you’d like more details on the Plan, they’re available on the PTCC website at http://mysite.verizon.net/drbsr/PTCCWeb/solution.htm.

A comprehensive Excel calculator has been developed by Rick Ritter of the Coatesville Taxpayers Alliance that will show you how you will be affected by this legislation.  Since the cost of education is spread over a much broader base with the Plan for Pennsylvania’s Future, almost all homeowners will realize substantial savings from this plan.  The calculator is available at http://mysite.verizon.net/drbsr/PTCCWeb/pfpfcalc.htm .  Please give it a test drive!

Because the revised Plan for Pennsylvania’s Future was written with input from both parties, it has received broad support on both sides of the aisle.  Further, House Speaker Dennis O’Brien, while appearing on the PCN Call-in Program on June 6, had this comment when talking about the Plan and Representative Rohrer: “I’m a full participant in trying to help him move that initiative”.

This legislation is ready to go NOW!  What we need to do is show overwhelming support to leave no doubt in the lawmakers’ minds that this plan is what is wanted and needed by Pennsylvania taxpayers.  We need everyone’s help to do this.

Representative Stan Saylor is a co-sponsor of this bill, but please write to him () to let him know that you strongly support passage of the Plan for Pennsylvania’s Future, that you want it passed NOW, and that any plan that is only a temporary fix and does not eliminate school property taxes is unacceptable. 

If you share this e-mail with homeowners in other areas of the State, ask them to write their representative to let him or her know the above and to ask them to co-sponsor this legislation and let them know that you will hold them accountable during the 2008 elections if they do not support this initiative.

If you’re uncomfortable with writing your own letter, a sample letter in MS Word format is available here: http://mysite.verizon.net/drbsr/PTCCWeb/pfpf_house1_6-07.doc.  Revise it in any way that you wish, then print it to mail or fax, or copy and paste it into an e-mail.  You can also phone your Representative if you wish.

You can find your Representative’s contact information by Zip+4 here: http://www.legis.state.pa.us/cfdocs/legis/home/find.cfm.

It would also be a huge help if you would be willing to contact House leadership as well.  Here’s the information:

Majority Leader:

Hon. H. William DeWeese
110 Main Capitol Building
PO Box 202050
Harrisburg, PA 17120-2050
(717) 783-3797
Fax: (717) 772-3605


Majority Whip:

Hon. Keith R. McCall
121 Main Capitol Building
PO Box 202122
Harrisburg, PA 17120-2122
(717) 783-1375
Fax: (717) 772-1231


Minority Leader:

Hon. Sam H. Smith
423 Main Capitol Building
PO Box 202066
Harrisburg, PA 17120-2066
(717) 787-3845
Fax: (717) 787-6564


Minority Whip:

Hon. David G. Argall
428 Main Capitol Building
PO Box 202124
Harrisburg, PA 17120-2124
(717) 787-9024
Fax: (717) 783-8657

Part II

We are currently experiencing a “perfect storm” of circumstances that favor major changes in education funding.  In a Quinnipiac University poll that was released on May 30, fully 89% of the respondents said that property tax reform is very or somewhat important.  Act 1 has been proven a fiasco by the failure of three of its four major provisions, including the May tax shift referendum that was defeated in 98% of Pennsylvania school districts.  Taxpayer discontent over the Legislature’s and the Governor’s handling of this issue has never been greater, and the politicians know that they will face big trouble in the 2008 elections if they fail to solve this problem.

All that is needed to push this measure over the top is the catalyst of voter opinion.  The time to act is NOW!  Please help by contacting your Representative and by spreading this message to everyone you know.

LET’S ALL WORK TOGETHER TO GET THIS DONE!

Sorry I can’t buy another crock of you know what from state legislators. All this bill is doing is tax shifting and tax increasing. Other states have less school taxes, sales tax and operate very efficiently. There is no reason why Pennsylvania cannot do the same other than the fact state legislators are too lazy to work for their keep and squander hard earned tax dollars. :(

I agree it is tax shifting, but I would rather pay a little more sales tax than the thousands I’m paying on my property.  I can control what I buy.  I can’t control the school board’s unconscionable spending.  People can’t lose their homes over sales tax (and there were 585 properties in SESD referred to the Tax Bureau for failure to pay taxes in 2006 and early 2007.)

School funding has to come from taxes.  And we all know the PA Legislature is not going to cut spending, or look for ways to save, in order to fund education from the general fund.

I actually sent letters to Spendell …oops, Rendell, Rep. Saylor and Sen. Waugh a year ago about a story Channel 8 ran detailing how the State can save more than $1 Billion over night:
1.  Consolidate local tax collectors at the County level, saving $100 million.
2.  Provide a Statewide pension plan for police, saving $70 million.
3.  Provide a Statewide administrator for school employees’ health care plans, saving $835 million.

If Ben Simmoneau can find this kind of waste, why can’t our elected officials? Our tax dollars are constantly being squandered. Taxpayers are fed up with the tax and spend attitude, band-aid fixes to major problems, and the continual irresponsible spending.

I did not receive any replies!  So, obviously, no one is interested in doing it the right way.  Bottom line, I’d rather have an expanded sales tax if it will eliminate school property taxes.

Teachers in many other states have lower salaries and less benefits/perks than PA teachers.  Many other states have higher income tax rates than PA and equivalent or higher sales taxes than PA.  For State comparisons of state sales tax and state income tax see the Federation of Tax Administrator’s web site http://www.taxadmin.org/fta/rate/tax_stru.html or the Tax Policy Center at http://www.taxpolicycenter.org/TaxFacts/tfdb/TFTemplate.cfm?topic2id=90

JH, I disagree. While I agree that this is a tax shift, our legislature and people in power locally are not going to give up their “local control” when it comes to spending. We need to tax fairly - property tax hurts those on fixed incomes/elderly.

I believe that taxing based on what we spend will be more fair in the long run - you are taxing those that can afford to buy. In addition, you are taxing the underground economy - people paid under the table, illegal income, and tourism/travelers.

Now, I agree we need to push for spending controls. Consolidation is the answer in more ways then one. Not just schools, but also police, local services, etc. Give teachers and other workers statewide retirement plans and healthcare plans. Encourage local municipalities to work together on large equipment purchases and services. Why do all the area townships need duplicate equipment when they could share?

I would like to thank Marge for keeping us all informed, regardless of how powerful or powerless we may be regarding these issues.  Also, thanks to Alex who has great knowledge on what really should (or should not be) going on and how it works. A bunch of you others I thank for your concern for the community and for even making the effort to log on and add to or just read what is happening.  We can at least be proud of these individuals and all the others that are trying to get the word out to the community.  Thanks especially to Dan Baldwin, without whom this site would not exist.

Thanks for your kind words, Caroline

Marge - 08 June 2007 09:23 PM

I agree it is tax shifting, but I would rather pay a little more sales tax than the thousands I’m paying on my property.  I can control what I buy.  I can’t control the school board’s unconscionable spending.

I’m with you on this point. I think that this bill might actually be one where the good outweighs the bad.