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Pennsylvania House of Representatives
07/17/2024 03:25 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20150&chamber=H&cosponId=16514
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: January 9, 2015 11:52 AM
From: Representative P. Michael Sturla
To: All House members
Subject: Property Tax Relief and Local Government Support
 
In the near future I will be re-introducing House Bills 70. This legislation will provide substantial school property tax relief and give our counties and municipalities an additional revenue tool to improve core services that are beneficial to our communities.

The legislation allows the board of commissioners or home rule equivalent to decide what is in the best interest of their community. The option for counties, municipalities, and school districts to rely less on the property tax levy must be made available to them as they strive to control costs and keep the tax burden low on their residents. Another appealing aspect of the legislation is that all of the money generated in the county – stays in the county – and is used for substantial property tax reductions and for improved local services. The sales tax is the preferred method of property tax reduction and is widely supported by the public. Municipalities throughout the Commonwealth are teetering on bankruptcy, school districts are struggling to educate our children in the face of drastic cuts, and many families are feeling the pinch of ever-increasing property taxes, so it is imperative that we give local governments the tools to reduce taxes and improve public services.

The proposed Optional Sales Tax for School Property Tax Relief and County and Municipal Assistance Act will provide counties the option of levying a 1% sales tax, but distributes the revenue as follows:

  1. 60% would be directed to school districts for a dollar for dollar reduction in school property taxes.
  2. 25% would be directed to municipalities.If the municipality has a minimally distressed municipal pension system or no distressed pension, 100% of the revenues received must be used for core services, property tax relief, or both.If a municipality has a severely or moderately distressed pension pursuant to the Municipal Pension Plan Funding Standard and Recovery Act, 100% of the revenues received by a municipality must be expended to pay any amount of the municipality’s minimum municipal obligation(s) pursuant to the Municipal Pension Plan Funding Standard and Recovery Act.Any municipality’s general funds paid to its pension plan(s) which have been replenished by the proceeds generated from the bill must be used to maintain core services.
  3. 15% would be directed to counties.The revenues received by counties must be used for core services, property tax relief, or both.
Core services are defined as police, fire, public health and welfare, administrative and clerical, judicial administration, corrections, and election services.

The following members co-sponsored HB 70 in the 2013-14 Session:
YOUNGBLOOD , HAGGERTY, SCHLOSSBERG, MUNDY , CARROLL , COHEN , MULLERY, MAHONEY, CALTAGIRONE , THOMAS and SIMS

Introduced as HB708