School Property Tax Elimination defeated in the senate

The bi-partisan-backed School Property Tax Elimination legislation was defeated in a close vote in the State Senate Monday night, requiring Lt. Gov. Mike Stack to vote to break the 24/24 tie. Stack voted against the proposal, effectively ending the bill this legislative session.

Co-sponsors of the bill gave passionate speeches of support for the legislation which would have eliminated school property taxes, by replacing the funding by raising the personal income tax from 3.07 to 4.95 percent and increasing and broadening the sales tax from 6 to 7 percent to include previously exempted items. Real estate services were not included in the expanded sales tax.

“It was a disappointing vote tonight,” said Derenda Updegrave, Pennsylvania Association of Realtors® Director of Public Policy and Political Affairs. “Our members have worked tirelessly on this issue for three years and we know that homeowners throughout the Commonwealth need property tax relief in order to continue to live in their homes. Our thanks go out to the senators who had the courage to vote for this historic legislation.”

In the last week, more than 5,300 emails were sent to senators, urging their support of the School Property Tax Elimination legislation. The discussion about real property tax reform has reached unprecedented levels in the Capitol and the media, due largely in part to PAR’s success in motivating consumers.