The Pennsylvania Senate Finance Committee, Sept. 16, approved the Property Tax Independence Act (Senate Bill 76), marking the first time the proposal has earned a positive vote from a legislative committee, says State Rep. Jim Cox (R-129).
Cox along with Sen. Dave Argall (R-29) introduced the bill in March 2013.
The legislation would completely replace school district property taxes through an expansion of the sales tax to include some currently exempt items, an increase in the sales tax rate and an increase in the state income tax. The sales tax would increase by one cent for every dollar spent on taxable items and the income tax would increase by a little more than one cent on every taxable dollar earned.
“This week’s vote was certainly a victory for everyone involved in this movement,” Cox said. “It marks the first big step in a long legislative process. This is a success we can build upon as we move forward”