Full Newsletter   Newsletter Archives

  Homepage    About Us    Services    Resources    Industries    Contact Us



 Glossary:  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Printable version 

  
PA State Sen. James Rhoades has unveiled a plan to shift taxes, increasing the state sales tax and offsetting that with a proposed elimination of $9 billion in school property taxes.  Different than previous proposals, Sen. Rhoades' Property Tax Elimination Act would call for a statewide referendum on the subject.

"For years, we have been tinkering around the edges of property tax reform, never fully solving the problem," said Rhoades. "My legislation will let the people decide whether to virtually eliminate school property taxes in Pennsylvania. It is a $9 billion solution to a $9 billion problem."

The Property Tax Elimination Act will require that a state-wide referendum question appear on the November 4, 2008 ballot. If Pennsylvanians vote "yes" on the referendum question, the state personal income tax and the state sales tax will increase and school property taxes will be reduced dollar for dollar, totaling $9 billion in total relief, an amount equal to 96 percent of all school property taxes.

If the state-wide referendum question is approved, the state sales tax would increase from its current rate of 6 percent to a new rate of 9.19 percent and the personal income tax would increase from its current rate of 3.07 percent to a new rate of 4.36 percent.

Rhoades went on to say that the funds would be directed to school districts by providing each school district with at least $5,000 for each student enrolled or an amount equal to 100 percent of their property tax revenues. School districts would be required to use these funds to reduce or eliminate property taxes on all property taxpayers across the board.

Reaction inside the Capitol has been mixed, and the debate will continue.  Look for follow-up articles on this subject in the future.


 


 Save article  Email Firm  Email to a Friend
Is this item worthy of implementation? Yes No Maybe
Is this item worth sharing with other associates? Yes No Maybe
Did this item present value to you and your business? Yes No Maybe
Comments:

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.

The drafter of the tax articles in this e-newsletter did not intend nor write the advice to be used to avoid any penalty imposed by a taxing authority, nor may any user/recipient of this document use this document’s written tax advice for that purpose. This document’s tax advice was written specifically to support the promotion or marketing of the transaction/matter addressed by the written tax advice. Therefore, any user/recipient of this document should seek an independent tax professional’s advice regarding the user/recipient’s particular circumstances.

 The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.