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
19nonresidents who work in the city but live in a surrounding

1county; and

2WHEREAS, Thirty-five percent of the city's allocation from
3the Property Tax Relief Fund is provided for suburban wage tax
4relief that does not stay within the city; and

5WHEREAS, Some suburban county residents receive both wage and
6property tax relief; and

7WHEREAS, Financial analysts have said that Philadelphia
8residents pay less in property taxes and more in wage taxes than
9residents of many other jurisdictions; and

10WHEREAS, The City of Philadelphia is set to implement a new,
11updated property tax assessment plan in 2013, known as Actual
12Value Initiative, or AVI; and

13WHEREAS, AVI is expected to result in higher property tax
14assessments for hundreds of thousands of city residents; and

15WHEREAS, Many residents could see an increase in property
16taxes as high as 300%; and

17WHEREAS, Notices of the new assessments are expected to be
18mailed to residents in February 2013, and the new values are
19expected to be the basis for property tax bills due in 2014; and

20WHEREAS, AVI is a new proposal that was not under
21consideration when the Taxpayer Relief Act and Title 4 were
22first implemented by the General Assembly; and

23WHEREAS, The impacts of AVI on property taxpayers in
24Philadelphia could have dire impacts on homeowners and
25communities across the city; therefore be it

26RESOLVED, That the House of Representatives direct the
27Legislative Budget and Finance Committee to study the allocation
28of gaming revenue provided to Philadelphia from the Property Tax
29Relief Fund; and be it further

30RESOLVED, That the Legislative Budget and Finance Committee

1study whether wage tax relief or property tax relief best
2represents the needs of the residents and taxpayers of
3Philadelphia; and be it further

4RESOLVED, That the Legislative Budget and Finance Committee
5take into account Philadelphia's plan to implement AVI and
6reassess property values on all properties in the city; and be
7it further

8RESOLVED, That the Legislative Budget and Finance Committee
9report all findings on this matter to the General Assembly no
10later than six months after the adoption of this resolution.