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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 8, 2015 02:00 PM |
|---|---|
| From: | Representative Dave Reed |
| To: | All House members |
| Subject: | Proposed Legislation - School District Property Taxes |
Please join me in cosponsoring legislation to address the continuing increase in school district property taxes. My proposal has two main parts, one dealing with the property tax problem at the state level, the other at the local level. First, my proposal will generate $4 billion per year to offset local school property taxes by increasing the state Personal Income Tax from 3.07 to 3.70%, and implementing an additional 1% sales tax to the existing sales tax base. These new funds will be distributed to school districts based on each school district's Average Daily Membership. In return, school districts will be required to reduce their property tax millage rates in a dollar-for-dollar exchange. This $4 billion shift from local sources to statewide sources will bring the total state support of basic education to 50%. Second, school districts will be empowered to further reduce property taxes through a dollar-for-dollar shift away from property tax toward other local taxes, including the Earned Income Tax, mercantile tax, and the business privilege tax. While no property tax proposal is perfect for every region, a partial shift to state sources of revenue for education, coupled with local options for even further reductions and/or elimination is reasonable statewide. If you have any questions regarding this legislation, please contact my office at 717-705-7173. Thank you. |