The current status of HB/SB 76 "The Property Tax Independence Act"

During the first week of October several votes having an impact on property taxes and school funding took place in Harrisburg. Rep. Kerry Benninghoff, chairman of the House Finance Committee moved HB 1189 known as "The Local Tax Enabling Act" to the house floor while keeping HB 76 known as "The Property Tax Independence Act" in committee. HB 1189 would allow school districts to choose at a local level how to fund their budgets via property tax, income tax, local sales tax, or a combination of the three. One of the concerns with HB 1189 is whether school districts would have the ability to increase all three, putting further pressure on those living on fixed incomes. Conversely, HB 76 would eliminate the local school property tax and place the burden on the state for the funding of education, eliminating the biggest complaint from school boards across PA, the "unfunded mandate".  The funding sources in HB 76 would be an increase in the income tax, increase in state sales tax, and slot revenue.

In response to having his bill kept buried in committee, Rep Jim Cox, the primary sponsor of HB 76, proposed Amendment A3448. A3448 proposed to gut the language of HB1189 and replace it with the language of HB76. A3448 did not receive the required amount votes and failed, leaving HB 1189 intact. HB 1189 then passed with a vote of 149 to 46. One of the main reasons for the defeat of A3448 was a report released on September 25, 2013 by the Independent Fiscal Office (IFO) showing a deficit in revenue generated by HB 76. However, critics of this report say that it does not count all revenue streams, and the report contradicts an AEG report dated September 16, 2013 that showed a surplus as well as a Department of Revenue analysis that found HB76 produced a 3 billion dollar surplus.

On Tuesday October 15th CEPTA will host a meeting on “PA Property Tax Elimination” HB/SB 76. Our guest speaker, Mr. Rich Shuker will present facts on HB/SB 76 and explain the funding sources. Please come out and ask your questions to Mr. Shuker so you can learn the truth about HB/SB 76. For more information on the meeting please visit: