State Rep. Jim Cox (R-129) says the number of co-sponsors for HB 76, which would end the use of the property tax for school funding, has reached 80.
Category: Pa Property Tax Reform And SB76
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.
More Support For SB76
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.
More Support For SB76
Cox Testifies About Property Tax Reform Proposal
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.
Cox Testifies About Property Tax Reform Proposal
Property Tax Independence Act Introduced
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.
Property Tax Independence Act Introduced
Improved Property Tax Independence Act
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.
Improved Property Tax Independence Act
School Tax Rebates Still Being Accepted
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.
School Tax Rebates Still Being Accepted
Finance Committees Analyze HB 1776
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.
Finance Committees Analyze HB 1776
GOP Stalls Property Tax Reform Bill
The State House Finance Committee, yesterday, June 11, voted 13-11 to table House Bill 1776 i.e. Property Tax Independence Act (House Bill 1776), sponsored by Rep. Jim Cox (R-129)
The bill would prohibit property taxes from being used to fund public schools, replacing them dollar for dollar with increases in the sales and income taxes.
School funding makes for about 80 percent of the property tax burden in the state and about 10,000 Pennsylvanian lose their homes annually due to an inability to pay property tax.
Basically, under the current system we are renting our homes from the state.
The motion to table was made by Rep. Eli Evankovich (R-54) and nine of the 13 supporting it were Republicans. Six of the 10 Democrats on the 25-member committee voted to send the bill on to the House for a full vote.
“This proves that property tax independence is not a partisan issue,” Cox said. “A majority of Democrats on the committee voted with us to move the bill forward. Unfortunately, we had some Republicans who voted to stall our efforts. Perhaps those lawmakers need to hear from their property taxpayers.”
The motion does not kill the bill, Cox says.
Cox said that opponents argued the bill should be amended before being approved. However, none of these members offered an amendment at today’s House Finance Committee meeting.
“I wonder about the sincerity of members who said they’d vote for the bill if it was changed, but chose not to offer any amendments,” Cox said. “In my experience in Harrisburg, that is often a tactic used to avoid an important issue.”
Other members argued that the vote should be delayed until the bill was in pristine condition for the committee’s consideration. However, Cox rightly pointed out that the committee did not hold other major pieces of legislation to the same standard. House Bill 1950, which placed a fee on Marcellus Shale, was significantly amended after being approved by the House Finance Committee but before being signed into law. Likewise, House Bill 2150, which would close a tax loophole and provide millions of dollars in tax breaks for corporations, was also amended after the House Finance Committee considered it.
“The committee seems to hold a bill that would benefit homeowners to a higher standard than it did bills that would benefit environmentalists or corporations,” Cox said. “I think constituents are left to draw the conclusion that there appears to be two different yardsticks used to measure bills before the House Finance Committee.
“Pennsylvania homeowners now have a list of lawmakers who need to be persuaded to support the Property Tax Independence Act,” Cox said about those who voted to table the bill. “I would hope the constituents of these representatives would reach out to the members and encourage them to support the bill in the future.”
House Finance Committee members who joined Cox in voting against the motion to table the bill include: Rep. Ryan Aument (R-41), Rep. John Bear (R-97), Rep. Scott Boyd (R-43), Rep. Matt Bradford (D-70), Rep. Flo Fabrizio (D-2), Rep. Adam Harris (R-82), Rep. Sid Kavulich (D-144), Rep. Rick Mirabito (D-83), Rep. Matt Smith (D-42) and Democratic Chairwoman Phyllis Mundy (D-120)
GOP Stalls Property Tax Reform Bill
2nd HB 1776 Hearing
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.
2nd HB 1776 Hearing
May 21 HB 1776 Hearing
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.