Senate Approves Sweeping Property Tax Reform Plan

Harrisburg – The Pennsylvania Senate today passed a comprehensive plan that would begin providing property tax relief in 2006, announced Senator Bob Robbins (R-50).

Robbins said Senate Bill 30, the "Taxpayer Relief Act," would allow voters to decide in the 2006 primary election whether to reduce school property taxes by raising local earned income taxes. Under the legislation, the minimum property tax reduction offered would be at least 35 percent of the maximum homestead exclusion. The maximum homestead exclusion is 50 percent of a residential property's assessed value. In addition, voters will have the power to vote "yes" or "no" on future tax hikes that go beyond the inflation rate.

"This legislation is the result of input from Senators in both political parties, from all regions of the Commonwealth," said Robbins. "It is the product of consensus and compromise, and it delivers real tax relief beginning in 2006."

The bill would also double the size of the popular Property Tax and Rent Rebate Program for low income seniors and permanently disabled citizens by adding $131 million and enabling 281,000 more to enroll in the program.

"This plan gets relief to those who most need it, and provides tax reductions to all property taxpayers in the quickest time possible," said Robbins. "And, importantly, it gives voters the first word in determining whether to switch to a new system and the last word in deciding on future property tax increases. I have made it clear that I would not support a bill that did not give local taxpayers control."

Senate Bill 30 was one of several measures considered in the General Assembly's Special Session on Property Tax Reform. The measure has been sent to the House of Representatives for further consideration.

CONTACT: Nate Silcox (717) 787-1322