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Pa Property Tax Reform And SB76 — Property Tax Independence Act introduced in the Pennsylvania legislature by State Rep. Jim Cox And State Senator Dave Argall in March 2013. It is also known as SB76, SB 76, HB 1776
SB 76 as of 2017 will eliminate all property tax funding for schools — with some exceptions for districts with long-term debt –and replace it by increasing the state sales tax 1 percentage point and the state income tax 1.88 percentage points.
A bill called HB 1776 was introduced in 2012 that would eliminate school property and local school nuisance taxes across the Commonwealth and replace those taxes with funding from a single state source.
State Rep. Jim Cox (R-129) reports that 13 additional state representatives have signed onto his Property Tax Independence Act (House Bill 76) bringing the total number of supporters to 73. The bill was introduced in March with 60 co-sponsors.
A companion senate bill, Senate Bill 76, was also introduced in March and has a total of 22 co-sponsors, Cox says.
State Rep. Jim Cox (R-129) testified last week about The Property Tax Independence Act (HB 76) which would replace revenues collected through school district property taxes with alternative statewide funding sources.
You can find information about the bill here.
You can watch Cox’s testimony here.
Rhetorically asking what Pennsylvanians would be willing to give to completely replace the school district property tax, March 12, State Rep. Jim Cox (R-129) held up a penny at a Capitol news conference and described how the Property Tax Independence Act (House Bill 76) could accomplish this huge goal with something so small.
Cox and his colleagues were officially introducing the new Property Tax Independence Act that would replace school property taxes with several other state revenue sources.
The legislation calls for a 1 cent increase in the state sales tax (from 6 percent to 7 percent) and a 1.27-cent increase in the state income tax (from 3.07 percent to 4.34 percent). The plan also would use existing state revenues from gaming and would close special interest loopholes in the state sales tax.
More about the plan can be found on Cox’s website.
A bipartisan group of state lawmakers will unveil the new and improved Property Tax Independence Act on noon, tomorrow, March 12, in Harrisburg, reports State Rep. Jim Cox (R-129) who is one of the bill’s sponsors.
Watch the news conference live on Tuesday at noon by visiting www.RepJimCox.com.
Cox introduced a similar bill last year that would have replaced the property tax as a means of funding schools with something less endangering to the shelters of those who have lost income such as the unemployed or those on fixed income such as the disabled and senior citizens.
Applications for Pennsylvania’s Property Tax/Rent Rebate program are currently being accepted, reports State Rep. Jim Cox (R-129).
Eligible participants can receive a rebate of up to $650 based on their rent or property taxes paid in 2012. The program benefits income-eligible Pennsylvanians who are 65 years or older, widows and widowers 50 years or older, and those 18 years or older with permanent disabilities.
Renters may earn up to $15,000 annually and qualify for the program, while home owners may earn up to $35,000. Exclude 50 percent of Social Security, Supplemental Security Income, and Railroad Retirement Tier 1 benefits when calculating income.
Residents are reminded to provide all the necessary income, property tax or rental information required to process claims quickly and accurately. Applications are due by June 30, with rebates being mailed after July 1.
Property Tax/Rent Rebate claim forms are available here.
“While the Property Tax/Rent Rebate program helps some homeowners, I remain committed to the complete replacement of Pennsylvania’s archaic school property tax system,” Cox said.
He said that those interested in learning about the Property Tax Independence Act (House Bill 76), that he is sponsoring should visit his webite: http://www.repjimcox.com
The bill would completely replace the school property tax with other funding mechanisms.
The House Finance Committee, Senate Finance Committee and the Select Committee on Property Tax Reform will hold a joint public hearing, 10 a.m., this morning, Oct. 1, where the Commonwealth’s Independent Fiscal Office and the Pennsylvania Realtors Association will both present reports analyzing the Property Tax Independence Act (House Bill 1776/Senate Bill 1400).
The bills would end the ability of school districts to tax real estate and replace the funding mechanism with either a income or sales tax which would be collected locally. The bills, however, do include a state Education Tax that would deposit money into the state’s Education Stabilization Fund.
The reports are intended to analyze the fiscal construction of the bill and determine if the proposed revenue streams (primarily the state personal income tax and state sales tax) would be able to replace the dollars currently generated by school district property taxes, said State Rep. Jim Cox (R-129), who is the House bill’s sponsor.
Depending on what the reports conclude, an amendment may be offered to tweak the proposals while adhering to their ultimate goal of replacing school district property taxes.
The hearing can be viewed at Cox’s website.
State Rep. Jim Cox (R-129) has announced that the second hearing before the House Finance Committee hearing regarding Property Tax Independence Act (House Bill 1776) will be 9:30 a.m., June 4 in Room G50 in the Irvis Office Building in Harrisburg.
The hearing will be streamed live at www.RepJimCox.com.
HB 1776 would prohibit school districts from using the property tax requiring them to replace it with either a sales tax or a personal income tax.
The press release regarding the hearing held yesterday, May 21, for House Bill 1776 was submitted by State Rep. Jim Cox who is sponsoring the bill which would end use of the property tax as a funding mechanism for schools. Cox explains why it is good to end the property tax as a school funding mechanism and notes that his bill will not cut school funding.
The House Finance Committee (May 21) held a hearing to gather testimony about the Property Tax Independence Act (House Bill 1776) sponsored by state Representative Jim Cox (R-129). While an advocate for property taxpayers enthusiastically endorsed the bill, some representatives of special interest groups who testified were less supportive.
“I think the testimony largely reflected the current situation,” Cox said. “While homeowners stand to gain the most from this legislation and have enthusiastically supported the bill, there are business owners who see this as a way to expand their business. Of course, not every group who testified was in favor of this change because the current system is working well for them.”
David Baldinger, who serves as president of the Pennsylvania Coalition of Taxpayer Associations (PCTA), an alliance of 72 grassroots Pennsylvania taxpayer advocacy groups that represent tens of thousands of taxpayers across the Commonwealth, enthusiastically supports House Bill 1776 and its companion legislation in the state Senate (Senate Bill 1400).
The Property Tax Independence Act would replace school property tax funding for schools across the Commonwealth with new state revenues.
“No tax should have the power to leave you homeless,” Cox said. “We have to end the practice of kicking senior citizens and widows out of their homes because they cannot afford to pay their property taxes.”
The Property Tax Independence Act would provide the same level of funding for schools across the Commonwealth as they currently receive through school property taxes. However, the plan would eliminate school property taxes and replace the funds with additional state revenues. Specifically, the bill would enhance collections through the state’s Personal Income Tax by raising it from 3.07 percent to 4 percent. It would also generate additional funds by closing loopholes in the state sales tax and raising the rate from 6 percent to 7 percent.
The plan would apply the 7 percent sales tax to clothing and footwear that cost $50 or more, non-prescription drugs and food items that are not part of the Women, Infants and Children (WIC) program.
In addition, it would close loopholes that currently exempt dry cleaning, funeral expenses, amusement parks and other services from the state sales tax. It would close similar loopholes that also exempt newspapers, magazines, flags, gum, candy and other goods from the sales tax.
Various special interest groups representing specific corporate sectors of the economy and levels of government also testified before the committee. The Pennsylvania Realtors Association is firmly behind House Bill 1776 and sees this plan as the necessary catalyst to revive a stagnant housing market. A testifier representing school boards, which would lose their ability to levy property taxes under the proposal, was not supportive of the plan. Another testifier representing newspapers, which would be subject to the state sales tax under the plan, also failed to wholeheartedly endorse the proposal.
“No plan to completely replace school property taxes is going to please every special interest group,” Cox said. “My goal with this legislation is to do what is right for homeowners and property taxpayers. I think the fact that property taxpayers overwhelmingly support the plan is a testament to how important it is to them.”
For additional information about the Property Tax Independence Act, including a complete list of items that would be subject to the expanded state sales tax, constituents should visit www.RepJimCox.com and click on the “Property Tax Independence Act” banner at the top of the page.