A RESOLUTION

 

1Directing the Legislative Budget and Finance Committee to study
2the allocation of gaming revenue provided to Philadelphia
3from the Property Tax Relief Fund and whether wage tax relief
4or property tax relief best represents the needs of the
5residents and taxpayers of the city.

6WHEREAS, The 2006 Taxpayer Relief Act and Title 4 of the
7Pennsylvania Consolidated Statutes created the Property Tax
8Relief Fund as a way to use gaming revenue to reduce property
9taxes for homeowners across the Commonwealth; and

10WHEREAS, The only exception to the use of gaming revenue to
11reduce property taxes is in Philadelphia, where gaming revenue
12is used to reduce the city's wage tax; and

13WHEREAS, At the time of passage of the Taxpayer Relief Act,
14some believed that the taxpayers of Philadelphia would best be
15served with a reduction in wage tax instead of a reduction in
16property taxes; and

17WHEREAS, A significant amount of the revenue generated by
18gaming for Philadelphia for wage tax relief is dedicated to

1nonresidents who work in the city but live in a surrounding
2county; and

3WHEREAS, Thirty-five percent of the city's allocation from
4the Property Tax Relief Fund is provided for suburban wage tax
5relief that does not stay within the city; and

6WHEREAS, Some suburban county residents receive both wage and
7property tax relief; and

8WHEREAS, Financial analysts have said that Philadelphia
9residents pay less in property taxes and more in wage taxes than
10residents of many other jurisdictions; and

11WHEREAS, The City of Philadelphia is set to implement a new,
12updated property tax assessment plan in 2013, known as Actual
13Value Initiative, or AVI; and

14WHEREAS, AVI is expected to result in higher property tax
15assessments for hundreds of thousands of city residents; and

16WHEREAS, Many residents could see an increase in property
17taxes as high as 300%; and

18WHEREAS, Notices of the new assessments are expected to be
19mailed to residents in February 2013, and the new values are
20expected to be the basis for property tax bills due in 2014; and

21WHEREAS, AVI is a new proposal that was not under
22consideration when the Taxpayer Relief Act and Title 4 were
23first implemented by the General Assembly; and

24WHEREAS, The impacts of AVI on property taxpayers in
25Philadelphia could have dire impacts on homeowners and
26communities across the city; therefore be it

27RESOLVED, That the House of Representatives direct the
28Legislative Budget and Finance Committee to study the allocation
29of gaming revenue provided to Philadelphia from the Property Tax
30Relief Fund; and be it further

1RESOLVED, That the Legislative Budget and Finance Committee
2study whether wage tax relief or property tax relief best
3represents the needs of the residents and taxpayers of
4Philadelphia; and be it further

<-5RESOLVED, That the Legislative Budget and Finance Committee
6include all gaming revenue that the City of Philadelphia
7receives through the 2006 Taxpayer Relief Act and Title 4 of the
8Pennsylvania Consolidated Statutes and where this revenue is
9distributed; and be it further

10RESOLVED, That the Legislative Budget and Finance Committee
11take into account Philadelphia's plan to implement AVI and
12reassess property values on all properties in the city; and be
13it further

14RESOLVED, That the Legislative Budget and Finance Committee
15report all findings on this matter to the General Assembly no
16later than six months after the adoption of this resolution.