PA school districts to decide on more tax relief

Personal income tax may help fund school tax cut

By TOM KANE

HARRISBURG, PA - The Commonwealth of Pennsylvania has directed school districts to decide if they want to offer more property tax relief to more homeowners.

Some homeowners who qualified - especially senior citizens - have already been granted some tax relief by a past legislative act.

The question now being proposed is: does the district want to extend more relief to even more home-owners?

There is a strong feeling in Pennsylvania, and across the country, that property taxes are an unfair way to fund schools for both students and property owners. Many say that other ways to finance schools should be found.

At the Wayne Highlands School District, a property tax relief commission was formed and met five times to consider the question of extending more relief to certain homeowners.

“By an agreement between Governor Rendell and the legislature, Act One of 2006 was passed last October, which directs the school districts to form a tax relief commission to see just what they want to do about this,” said Thomas Jenkins, Wayne Highlands superintendent. “The commission met and offered three options to the school board. The board may accept one if they want to and present the option to voters as a referendum at the May primaries.”

It’s up to the school board

“The commission offered the district three options: one, to do nothing and offer no new tax relief; second, to legislate a seven percent increase in earned income taxes; or three, to increase the personal income tax to pay for the tax relief,” said Gerry Williams of Carley Brook, who served on the commission. “We left it up to the school district to decide what to do.”

“This is really a tax-shift program and not a tax-relief program,” Jenkins said. “Some people will benefit and others will have to pay more.”

Those who qualify for the new tax relief, if it is enacted, are homeowners who live in their own homes - not people who own other property or who own second homes - and those who now have a homestead or farmstead exclusion in their taxes, Jenkins said.

Future tax relief

“True tax relief for all homeowners will come from the PA Gaming Commission once all the casinos are in place and money is flowing,” Jenkins said, referring to the video slot machine facilities opening across the state. That may take three or four years, he said.

“There will be 10 casinos when all are opened,” he said. “Right now, we only have two open and two ready to open. It will take time to get them all opened.”

The Wayne Highlands school board will make its decision at its meeting on January 16, at 8:00 p.m. at the district office.