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Property Tax Reform: The Devil in the Details

4/29/2015

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A comparison of Governor Tom Wolf's Proposal and the Pennsylvania House Republican Proposal

Property tax reform has long been a priority in the Pennsylvania General Assembly. Education funding shifts during the Corbett administration placed an especially heavy burden on local property taxes, resulting in increases locally and creating an army of disgruntled homeowners back in legislators’ districts. 

But 2015 shows the greatest likelihood for property tax reform, as the sitting Democratic Governor has done what he can to co-opt the issue. In his budget proposal, Governor Wolf has shown interest in increasing state taxes to shift the tax burden from homeowners to the public at large and provide greater education funding.

Not to be outdone, the Republican leadership of the House of Representatives, under the guidance of Education Committee chair Stan Saylor (R-York), advanced their own property tax reform plan in April. The similarities, and differences, in both proposals will test the yet-to-be-formed diplomatic relations of the Governor’s office and the House.

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PFMA has opposed any property tax reduction plan that places a greater burden on businesses and consumers, which both of these plans do. This discussion is still in its infancy, and much negotiation still needs to take place. 

The House Republican plan has already received a lukewarm response from House Democrats and conservative Republicans who would prefer a plan that eliminates property taxes completely. And no word has been received from the Senate.

PFMA will continue to advocate for its members’ interests on this issue and keep you informed as it evolves.

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