|In the near future, it is my intention to re-introduce property tax elimination legislation for the 2013-2014 legislative session.
This legislation would provide for the following:
The result of this legislation would be a revenue neutral change – neither state nor local government would collect more or less tax money than what was previously required to fund government services, particularly public education.
Property taxation would be eliminated over six years, with a 33 percent reduction in school property taxes in the first year alone.
In years one through three, Pennsylvania’s personal income tax would be increased from 3.1 percent to 4.6 percent while the state sales tax would be increased from 6 percent to 9 percent. In years four through six, municipalities would increase the earned income tax and/or personal income tax.
Voter approval of local tax increases would be required unless the increases are for health or safety reasons.
General Fund surpluses, minus the amount that must be deposited in the Budget Stabilization Reserve Fund, would be used to reduce the personal income tax rate.