Rohrer introduces school property tax elimination bill

[soup]

http://www.pottstownmercury.com/arti...0005269248.txt

Give state Rep. Sam Rohrer credit for persistence. The veteran Berks County lawmaker, who has made his reputation in Harrisburg by tenaciously fighting to eliminate the much-hated school property tax, is going to give it another try.

Rohrer has reintroduced a new version of the the School Property Tax Elimination Act in the state House of Representatives, where the Republican lawmaker is now minority chairman of the House Finance Committee.

Earlier versions of the plan failed to win enough support in the Democratic-controlled House, but Rohrer has a new argument in pushing the bill. The elimination of property taxes would jump-start Pennsylvania's ailing economy by allowing homeowners to keep billions of dollars they are now forced to pay for public education.

"Compared to the federal stimulus of $18 billion over three years, the School Property Tax Elimination Act would infuse approximately $7 billion annually into the economy, as homeowners are freed from their onerous property tax bills," Rohrer said in announcing the revised version of House Bill 1275. "The magnitude of the plan simply dwarfs any other options, without using government spending or subsidies, and puts billions into the hands of our citizens to pay their bills, invest in the economy or support local businesses."

Instead of relying on local property taxes, school districts would receive their primary source of funding from an expanded state sales tax under Rohrer's bill. The sales tax rate would remain at 6 percent, but would expand to include some currently tax-exempt items, Rohrer said.

Food, clothing, prescription medications and "other essential items and services" would not be taxed under Rohrer's plan. The tax elimination bill also would use new rent and royalty payments generated through expanded natural gas drilling on state forest lands to fund Pennsylvania schools, Rohrer said.

Rohrer is quick to point out his plan is much different than those offered by House Democrats, which would reduce, but not eliminate, property taxes.

"Partial reduction is not the answer," Rohrer stated. "Taxes continue to rise unabated, and the governor's so-called 'Property Tax Relief Fund' barely makes a dent in what most taxpayers have to pay. It's a political response designed to alleviate the problem and never solve it, and it has distracted from the real issue. The only solution is complete and total elimination."

Gov. Ed Rendell has been touting revenues generated from the state's slot parlors as property tax relief, but those funds have failed to live up to Rendell's own prediction. For example, the state has about $613 million available for property tax relief this year, which means qualified homeowners will see a reduction of anywhere from $32 to $641, depending on the school district.

Rohrer's plan seeks the permanent elimination of all school property taxes.

"No tax should have the power to leave you homeless," Rohrer said. "Seniors citizens, retired couples, young families, recently laid-off workers — through no fault of their own, all these people are standing on the precipice of losing their homes, as their pensions have plummeted and incomes have been reduced or even eliminated. For families struggling to make mortgage payments, this plan offers the only true hope of remaining in their homes and securing their home ownership."

Under Rohrer's plan, funds from the expanded state sales tax and the revenues from Marcellus Shale natural gas development would be deposited into a newly created Education Operating Fund. The money in the fund would be used to implement a four-year phase-out of school district property taxes. The phase-out would ensure a smooth transition into the new system without disrupting normal operations of either schools or businesses, Rohrer said.

"When we first introduced the idea of school property tax elimination, our proposal ran parallel with Gov. Rendell's proposal to use gambling proceeds to relieve — never solve — the property tax burden," Rohrer said. "Here we are, seven years later, and homeowners have received just one payment, and a pittance at that, to help with their taxes.

"Had we enacted the School Property Tax Elimination Act back then, we would have already passed through the four-year phase-out. Homeowners would not only be free from paying any school property taxes, but the state would have had the time to build up the excess revenue in order to weather this current economic storm."

Rohrer's plan also gives voters control over any future tax increases. Under House Bill 1275, any future tax increases would have to be approved by voters through a ballot referendum.

"Under the provisions of Act 1, the voter referendums we have are what I like to call 'taxpayer protection in name only,'" Rohrer said.

"Sure, we have a law that says voters are supposed to have the right to approve or deny any school tax increases, but the Department of Education usually grants the district an exemption and the voters never have a chance to vote on the tax increase. My plan offers real voter empowerment where previous plans offered only false hope."

Rohrer is seeking co-sponsors for House Bill 1275. The Pennsylvania Taxpayers Cyber Coalition has launched a petition drive urging lawmakers to support Rohrer's bill. You can sign the petition online or print petitions out to gather signatures at the tax group's Web site, http://ptcc.us

[ChamberedRound]

From Rep. Rohrer's website, the bill will be HB1275:

http://www.samrohrer.com/?sectionid=...=17&itemid=279

Rohrer Reintroduces School Property Tax Elimination Act
Monday, May 04, 2009

Touting the benefits Pennsylvania has lost by not acting sooner, Rohrer says eliminating the unfair tax would jumpstart Pennsylvania’s economy

Hailing it as the single most important step Pennsylvania lawmakers could take to jumpstart the state’s economy, prime sponsor Rep. Sam Rohrer (R-Berks) today unveiled the School Property Tax Elimination Act (SPTEA).

“The SPTEA offers a dramatic comparison to the current federal stimulus plan,” Rohrer said. “Compared to the federal stimulus of $18 billion over three years, the SPTEA would infuse approximately $7 billion annually into the economy, as homeowners are freed from their onerous property tax bills. The magnitude of the plan simply dwarfs any other options, without using government spending or subsidies, and puts billions into the hands of our citizens to pay their bills, invest in the economy or support local businesses.

“No tax should have the power to leave you homeless,” Rohrer continued. “Seniors citizens, retired couples, young families, recently laid-off workers—through no fault of their own, all these people are standing on the precipice of losing their homes, as their pensions have plummeted and incomes have been reduced or even eliminated. For families struggling to make mortgage payments, this plan offers the only true hope of remaining in their homes and securing their home ownership.”

The bill is distinctive in that it remains the only plan that has the capacity and the simplicity to present a comprehensive restructuring of the way Pennsylvania funds its schools and addresses issues of spending controls, predictability, debt, and distribution. Instead of relying on local school property taxes, school districts would receive their primary source of funding from an expanded state sales tax. The sales tax rate would remain at 6 percent, but would be expanded to include some currently tax-exempt items. Food, clothing, prescription medications and other essential items and services would not be taxed under Rohrer’s plan. The SPTEA also would use new rent and royalty payments generated through expanded natural gas harvesting activities on state forest lands to fund Pennsylvania schools.

“Partial reduction is not the answer,” Rohrer stated. “Taxes continue to rise unabated, and the governor’s so-called ‘Property Tax Relief Fund’ barely makes a dent in what most taxpayers have to pay. It’s a political response, designed to alleviate the problem and never solve it, and it has distracted from the real issue. The only solution is complete and total elimination.”

Funds from the expanded state sales tax and the revenues from Marcellus Shale natural gas development would be deposited into a newly created Education Operating Fund (EOF). The money in the EOF would be used to implement a four-year phase out of school district property taxes. The phase-out would ensure a smooth transition into the new system without disrupting normal operations of either schools or businesses.

“When we first introduced the idea of school property tax elimination, our proposal ran parallel with Governor Rendell’s proposal to use gambling proceeds to relieve—never solve—the property tax burden,” Rohrer said. “Here we are, seven years later, and homeowners have received just one payment, and a pittance at that, to help with their taxes. Had we enacted the SPTEA back then, we would have already passed through the four-year phase out. Homeowners would not only be free from paying any school property taxes, but the state would have had the time to build up the excess revenue in order to weather this current economic storm.”

The SPTEA addresses the spending side of the equation, tying the school districts’ revenue to the sales tax. Under the current system, as overall property tax revenue decreases because of increasing foreclosures and delinquencies, schools are forced to consider raising their property tax rates, further burdening those who can pay and creating a vicious cycle of foreclosures and delinquencies. Under Rohrer’s plan, the sales tax would continue to create a stable form of revenue. Even in difficult economic climates when the sales tax revenue declines, schools would be forced, along with all Pennsylvanians, to reduce their spending.

Rohrer argued that using the state sales tax to fund education poses significant benefits over the existing property tax system. Specifically, he noted that the sales tax was instituted in 1953 expressly for the purpose of educational funding, and as such remains the best-suited source for the schools because sales tax revenue—and thus school revenue—will grow as the economy improves. In addition, Pennsylvanians will have more control over the amount of taxes they pay, as they can increase or reduce their tax burden based on the purchases they make. Finally, sales tax revenue is sensitive to economic realities, ensuring that when Pennsylvania families are forced to reduce their consumption, schools also will be forced to reign in their spending.

Rohrer’s plan also offers the first real opportunity for voters to have direct control over any future tax increases. Under the SPTEA, any future tax increases would have to be approved by voters through a ballot referendum.

“Under the provisions of Act 1, the voter referendums we have are what I like to call ‘taxpayer protection in name only,’” Rohrer said. “Sure, we have a law that says voters are supposed to have the right to approve or deny any school tax increases. But the Department of Education usually grants the district an exemption and the voters never have a chance to vote on the tax increase. My plan offers real voter empowerment where previous plans offered only false hope.”

“For years, school property tax elimination seemed like a pie-in-the-sky idea to lawmakers in Harrisburg—a noble but impractical goal,” Rohrer said. “But we have a plan to make that dream a reality. Now, it is only a matter of whether state lawmakers choose to listen to their constituents and then act upon their cries in order to make that dream come true for Pennsylvania property taxpayers.”

The SPTEA will be introduced as House Bill 1275. For more information about the proposal, visit Rohrer’s Web site at SamRohrer.com.

Rep. Samuel Rohrer
128th District
Pennsylvania House of Representatives
(610) 775-5130
(717) 787-8550
www.SamRohrer.com
Contact: Dan Massing
House Republican Public Relations
(717) 772-9845
www.pahousegop.com

[God's Country]

Although I support the elimination of the school tax I'm done getting excited over the possibility of it ever becoming reality especially in a recession with low revenues coming in to fill the coffers. Everyone wants tax reduction, but most don't want to suck up the fact that tax reductions result in reduced “benefits” whatever that means to the individual.

[ALS]

Keep dreaming. When has any tax been eliminated in this state? NEVER

People can move and or adjust their spending to compensate for increased taxes. But a piece of land with a building on it is a permanent fixture that you can tax with no fear it will get up and walk away.

You can't pay the tax on the property we will just take it from you and sell it to someone else. If they can't pay the tax, we will take it away from them also and sell the property to someone else.

I own property in Florida where everything is taxed at 6%. My property taxes are less than 1/10 Allegheny county. My $1,680 property tax bill in Naples would be almost $21K for a piece property of the same value in this county.

Difference is this, last year the teachers were demanding pay increases.
The school board said there isn't any money for increases in pay.
If you don't like what Collier County school district pays you, you are welcome to take a job in another district. Not one teacher quit.
In the last five to seven years they built a second HS, three new middle schools and two elementary schools with no tax increases.
I wonder how their school board pulled that one off?

Do the math on a property tax shift to a sales tax on everything.

You own a $134K (average) home in Allegheny county. Your paying around $4,300 in property taxes. To compensate for those taxes the average homeowner would have to buy an additional $71,666 non taxable items to make up the difference. How many of you are going to be buying $71,666 in present non taxable items with your income after payroll taxes. Guys it ain't happening.

[Paradigm]

It won't happen for two reasons:

1. School boards and administrators refuse to be fiscally prudent

2. Teachers' unions will do anything to protect reason #1

[Chainsaw]

Everyone wants tax reduction,

For me it's not just about tax reduction it's about actually owning your home instead of "renting" it from the government.

[camper]

Keep dreaming. When has any tax been eliminated EVER

Fixed it for ya

camper

[Azzy]

I don't like the idea of any targeted tax cut... cut all the property taxes or none. Heck, we could go to a fair tax nationally and solve all of this.

There is only one way we could truly cut taxes in PA. Bump out the unions. Bump out the penndot union that cant keep a road or bridge in order, nor finish a project in a time or budget specified. Kick out the teachers union, practicing their socialism in a place where it should not be.

I doubt we could do it any time soon.... but private contractors have and would do a better job at our basic upkeep of public services and lands.

Oh, and burn down the casinos... all they are is an economic black hole, money goes in, does nothing, and disappears.

[Capnswervon]

Keep dreaming. When has any tax been eliminated in this state? NEVER

Hey! What about the $106 property tax break I am getting from Fat Eddie's slot machines.....[/puke>]

I received the same e-mail from Sam a day or so ago. Like a previous poster mentioned, I am not holding my breath, but at least the guy keeps trying...and he is a big supporter of 2A.

The Capn'

[Berks_Iraq_Vet]

For me it's not just about tax reduction it's about actually owning your home instead of "renting" it from the government.

+1. I want to actually own my home.