PAR announces support of Senate Bill 76

The Pennsylvania Association of Realtors® (PAR) is supporting Senate Bill 76, which proposes to eliminate property taxes dedicated to school districts. The bill provides a plan to replace school property tax funding by raising the personal income tax from 3.07 to 4.34 percent and increasing and broadening the sales tax from 6 to 7 percent to include previously exempted items.

Senate Bill 76 currently has 24 sponsors and House Bill 76 has 88 sponsors. Both bills have bi-partisan support. Other property tax reform bills are currently under consideration but do not offer significant change.

PAR has completed an economic analysis, statewide polling and countless discussions with residents across the commonwealth.  All of these have led the association to conclude that Senate Bill 76 is not only viable, it is the real reform Pennsylvanians need.  Senate Bill 76 offers a fiscally responsible plan for property tax reform, according to an economic impact study completed by Anderson Economic Group. The study also shows that even with the increase in personal income tax (PIT), Pennsylvania would still have a lower PIT than surrounding states.

“As a strong proponent of private property rights, PAR believes it is important to maintain an environment that is conducive to encouraging home ownership,” said PAR President Bette McTamney. “The association believes Senate Bill 76 would make Pennsylvania a more attractive state for economic development and homeownership.”

In addition, PAR believes SB 76 will protect seniors on fixed incomes and fairly tax consumers in a responsible way, according to Greg Herb, chair of PAR’s Property Tax Reform Task Force.

“Throughout the Commonwealth, rising school property taxes have made it difficult for elderly homeowners on fixed incomes to pay their taxes,” Herb said. “By eliminating property taxes and replacing the funding with personal income and sales taxes, the burden of unreasonably high property taxes would be lifted from seniors and fairly spread among those who consume and earn the most.”

There is bi-partisan support among voters for statewide property tax reform, according to a survey conducted by Keystone Analytics, a wholly owned PAR company. Surveys show a two-to-one public support of Senate and House Bill 76 with strong support coming from Democrats, Republicans and Independent voters alike.

PAR leaders believe that this property tax reform is important to maintain the real estate industry recovery in the Commonwealth.

In the coming weeks, PAR may issue calls-to-action to support this legislation.