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Pa. House OKs property tax bill

It gives schools revenue options

HARRISBURG — Pennsylvania’s House of Representatives sent the Senate a bill Wednesday that would authorize local school boards to reduce or eliminate school property taxes and shift the revenue source to new levies on residents and businesses.

The bill, clearly an effort to reassure constituents concerned about rising property taxes that lawmakers hear them, was approved without debate on a bipartisan 149-46 vote.

The measure would allow school boards to impose an “elimination tax” made up of taxes on businesses or on the income of local residents, or both. The revenue would be earmarked to reduce or eliminate property taxes.

School boards would have to adopt a resolution stating their intent to create such a tax and hold at least one public hearing, but the bill would not require voter approval.

Previously, the boards “haven’t had direct options that allow them just to do it themselves,” said Rep. Seth Grove, R-York, the sponsor of the bill.

House Majority Leader Mike Turzai said it would be up to school districts to decide how much of their tax revenue they want to shift to other taxes, or whether to shift at all.

“In the end, that’s a local decision,” said Turzai, R-Allegheny.

In 2011-12, all 500 Pennsylvania school districts imposed a property tax and they collected about $12 billion, more than 80 percent of their combined local revenue, according to state Department of Education figures circulated by the House GOP majority. Earned-income tax produced about 9 percent and business taxes accounted for less than 1 percent.

Steve Robinson, a spokesman for the Pennsylvania School Boards Association, said the bill does nothing to ease state underfunding of public schools, but provides additional options without sacrificing flexibility for school boards.

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