Harrisburg, PA — A new proposal would make school property taxes a thing of the past. But, like so many plans, the devil is in the details. Property tax elimination has been a hot button topic in PA for decades. Now, a new plan is hoping to garner a bit more attention.
“Property taxes are a broken model. They are doomed to failure,” said Representative Frank Ryan, (R) 101st District.
A failing financial plan is digging a huge hole in people’s pocketbooks. Now, there is a push to get away from school property taxes.
“This will solve our long-term problem. It really will,” said Representative Ryan.
For the past few years, Lebanon County Representative Frank Ryan has made it his sole duty to reform the tax structure in PA. Right now, schools depend on property owners for the money to run the district. Under Rep. Ryan’s plan, homeowners would be off the hook replaced with an increase in sales and income tax.
“We are seeing a good back to the city movement but the problem is property taxes, especially school district property taxes, still are an impediment to our growth,” said Mayor Michael Helfrich, (D) York.
Under this new model, the personal income tax (PIT) would rise 1.85% to 4.92% while the state sales tax will jump from six to eight percent. That cash would stay local. New taxes would also include a two percent charge on food and clothing and retirement income rounds out the plan.
“I think it's a much more equitable way of doing it. (There is) a lot of controversy,” said Rep. Ryan.
“I’m excited to see a new plan to alleviate those taxes and put them into income taxes and sales taxes,” said Mayor Helfrich.
To make this work, the new plan will have to replace a whopping $16 billion a year in tax money. At the current incline, with districts raising rates the state maximum of 3.2% a year, property taxes will double in 17 years and triple in 30 years. Something needs to change.
“If we don't do it now, I will tell you that the number will become too big to do it. This is a last ditch effort. I would say if we're not going to get it done the session, then it's not going to happen,” Rep. Ryan said.
“Is there an appetite for it?” Gorsegner asked.
“There is but there is no representative in the world that is going to go forward on this issue unless the public says, I'm willing to let you make this change,” said Rep. Ryan.
So far, Representative Ryan has posted a co-sponsorship memo, inviting other members to open up the conversation and talk about the issue. In fact, he is not seeking reelection giving him the ability to solely focus on this issue.
To figure out how this new plan would play in your world, there is a calculator that estimates the amount of taxes you would pay.