Tax relief?

Voters in Pennsylvania have an opportunity to take down much-loathed school property taxes this November, thanks to a ballot referendum.

At least that’s what a question set to appear on the ballot seems to indicate. The truth is that even if the vote passes, it’s only the first step toward what many politicians and constituents consider their ultimate goal.

The proposed referendum on the ballot will read: “Shall the Pennsylvania Constitution be amended to permit the General Assembly to enact legislation authorizing local taxing authorities to exclude from taxation up to 100 percent of the assessed value of each homestead property within a local taxing jurisdiction, rather than limit the exclusion to one-half of the median assessed value of all homestead property, which is the existing law?”

Based on the wording, it could easily catch the eye of voters, even those who normally gloss over ballot questions.

Sen. David Argall — who is the primary sponsor of SB 76, a bill that aims for complete elimination among other tax changes — is looking forward to a positive vote on the issue.

“I believe it is going to pass, and I certainly hope it does pass,” Argall said. “It gives us more options. Complaints about the school district property taxes are the number one issue that I hear on a daily basis.”

Lehighton Area School District business administrator Brian Feick agrees with Argall, and believes that the vote could stimulate more government action.

“I think this will pass, overwhelmingly, and maybe it will make the state do something,” Feick said.

The referendum question’s approval would open the doors to complete elimination of school property taxes in Harrisburg, in essence reinvigorating the push for SB 76, but it would also permit some more immediate actions.

“Essentially, if approved, this would allow local taxing authorities — school districts, municipalities — to offer not only a reduction in a homeowner’s property tax, but also potentially the elimination of their local property tax. It would also base the relief on the value of a particular property, not on a figure based on the value of all properties in that taxing district,” a statement from Sens. Lisa Boscola and Pat Browne reads.

However, it is important to note that even on a local level, implementing these changes will take some time. Even supporters like Feick admit that elimination will not be immediate.

“It’s misleading because it sounds like it’s going to eliminate property taxes if they pass it,” Feick said. “There’s a lot of work that politicians have to do before it happens. It’s just not going to happen overnight.”

On a positive note, Feick said that if local property taxes are eliminated, putting the funding issue in the states’ hands could prove beneficial for students. Spending per student could be evened out, balancing wealthier districts’ expenditures with the lower returns from poor areas. But on the other hand, the more well-off districts may stand in opposition to nixing school property taxes, as their standards of increased costs for each student would be shaken up.

Argall said that for the first year of implementation, districts would likely receive the same amount of funding that they had previously taken in from the property taxes, allowing for a more gentle segue.

While it is still early to discuss exactly how the state government will make up the lost funds, Sens. Mario Scavello and Argall have suggested an increase in personal income tax and sales tax. During a telephone town hall meeting on Monday, Scavello mentioned a 1.5 to 1.6 percent increase in personal income tax that could help make up at least part of the funding.

Regardless of the challenges associated with statewide or locally based reduction or elimination efforts, many politicians are in support of the initiative, which they propose will bring Pennsylvania up to date with a more modern approach to taxation and school funding. And while it won’t make for any tax changes overnight, a positive vote on the referendum could spur broader support for an overhaul of the old ways.

“I will be supporting the ballot question in the hopes that it will be one small, but necessary step toward our long-term goal of eliminating school property taxes. Pennsylvania cannot have 21st century schools with an antiquated 19th century property tax system,” Sen. John Yudichak said.