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Pa. Realtors push property tax reform

Manager speaks on Senate Bill 76

LYNDORA — Chuck Liedike said he has talked to constables from around the state who have said they are serving papers to people because they are unable to pay their property taxes.

“To me, philosophically, that’s wrong,” Liedike said, saying that once someone owns their house, it should be theirs.

Liedike, who is the manager of the RealReform76 campaign for the Pennsylvania Association of Realtors, spoke Wednesday night at a town hall meeting to discuss state Senate Bill 76, which would reform property taxes.

“We feel that the bill is real reform,” Liedike told about 70 people at the Tanglewood Center.

He said the bill is simpler than other property tax reform bills. It eliminates school property taxes, but makes sure that school districts are funded by increasing the sales tax and personal income tax.

“The burden gets pushed more to those that consume and earn the most,” Liedike said.

He said that income and sales taxes are more stable than other taxes, even in a down economy, and can easily be predicted.

Liedike said school district’s still will get funding, just a bit less than if they increased taxes.

“This is not a bill that looks to hurt schools,” Liedike said.

The bill creates an “education stabilization fund,” which would initially provide schools with funding equal to the revenue from property taxes that year. The funding would increase every year after that.

If the district does want to increase its funding, it can implement a personal or earned income tax through a voter referendum.

He said there are plenty of myths surrounding the bill, including that it would threaten the local control of school districts. Actually, he said that districts can spend their money however they want.

Liedike also said there is a myth about a $1 billion shortfall, but he said that is because school districts are projected to increase taxes by $2.2 billion between 2015 and 2019. Districts still will see increases in funding every year, just not as much as if they would raise taxes.

The bill has 25 co-sponsors, including Sen. Don White, R-41st. Of the bill’s co-sponsors, 13 are Republicans and 12 are Democrats.

“This is a bipartisan piece of legislation,” Liedike said.

There is an identical bill in the state House of Representatives, but Liedike said the campaign is focusing on the Senate because, with only 50 members compared to the 200-plus in the house, it is easier to get things done there.

However, he said getting the legislation passed could be challenging.

“Property tax reform has been discussed ... well into the 70s and beforehand,” Liedike said.

He said people interested in the legislation should visit www.RealReform76.com and talk to legislators, friends, family and neighbors about the bill.

Jim Keffalas, owner of Keffalas Real Estate and the chairman of RealReform76 for the Butler County Association of Realtors, said, generally, between two-thirds to 70 percent of a person’s real estate taxes are school taxes.

“For many people, it’s the largest tax they need to pay,” said Keffalas, who is a board member for the Butler School District.

He said, over the past several years, property taxes have increased at twice the rate of inflation. He also said the association understands the importance of making sure education has solid funding.

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