|Posted:||February 23, 2015 11:55 AM|
|From:||Representative Keith Gillespie|
|To:||All House members|
|Subject:||The Residential Property Tax Elimination Act|
|In the near future, I intend to introduce legislation that ultimately eliminates all school residential property taxes, current Earned Income taxes (EIT) in lieu of property taxes, as well as other payments in lieu of taxes. The results of several questionnaires and local meetings with constituents of the 47th Legislative District indicate this is the most popular course to take.
The Residential Property Tax Elimination Act (RPTEA) would shift the majority of funds collected as property taxes to being collected as sales and income taxes.
My plan consists of increasing the Commonwealth’s Personal Income Tax (PIT) from the current rate of 3.07% to 4.5%; adding food and clothing to the items currently taxed under the sales and use tax; and increasing the rate on those items from 6% to 7%, with these monies being transferred into the newly-created Residential Property Tax Elimination Fund.
The gaming monies currently being used to reduce school property taxes would also be transferred to the fund.
Current debt will be paid by property taxes until eliminated, with no new debt to be incurred via property taxes once paid in full.
School districts will have the option of enacting up to a 1% PIT or EIT for purposes to be approved by voter referendum. Project cost and start/end dates must be disclosed.
Once eliminated, residential property taxes may not be re-introduced by school districts.
The Property Tax / Rent Rebate program would remain in current form for those who truly need help to pay for property taxes not yet eliminated.
Introduced as HB599