House OKs amendment for property tax cuts
HARRISBURG — A constitutional amendment to permit elimination of homeowners' property taxes advanced out of the state House of Representatives on Thursday, but it still faces a long road ahead.
The measure would expand a provision in the state constitution that allows a 50 percent cut in property taxes for people's primary homes. The amendment would let the Legislature eliminate such taxes, while keeping taxes in place for businesses and other commercial properties.
The bill was one of two items to emerge from the House as members searched this week for ways to cut school taxes. The other, which also passed unanimously Thursday, would give tax breaks to working poor while cutting the state's personal income tax by about a billion dollars a year.
The constitutional amendment would need to pass the Senate this year and then get another round of approval by the Legislature in the 2009-10 session before going to state voters for a referendum.
Despite its unanimous passage, some Republicans criticized the bill for not requiring — rather than simply allowing — larger property tax cuts or for not eliminating property taxes of all kinds.
"It's a borderline joke is what it is," said Rep. Will Gabig, R-Cumberland. "It will do nothing. It will not reduce property taxes by one dollar. It will not change the system at all."
The sponsor, Rep. David Levdansky, D-Allegheny, said it will cost the state $5.5 billion to eliminate property taxes for primary residences or farms, and another $5 billion to get rid of the tax entirely, including businesses and commercial properties.
