PA eyes eliminating the property tax

It could be a good thing and make housing more affordable in the state and make older homeowners feel safe that they don't have to worry about their homes and land being taxed away. I just hope it doesn't spur an increase in home prices since buyers will be able to afford more house without the tax bill added in.

They say they're gonna do it by bumping the sales tax and the income tax by about 1% each (they'll get our money coming and going).

Pa. lawmakers eye elimination of school property taxes

Two dozen Republican and Democratic lawmakers unveiled legislation Tuesday to replace the $10.4 billion collected every year in school property taxes with new revenue generated by increases in sales and personal income taxes.

Pennsylvania has been unsuccessfully waging the property tax debate for decades. If legislation being proposed in the House and Senate is approved, the sales tax would rise from 6 cents on a dollar to 7 cents. The personal income tax would go from 3.07 cents for every dollar earned to 4.34 cents.

“This outmoded, archaic, unfair system (of property taxes) has to be eliminated,” Argall said.

The legislation would use existing gambling revenues to help replace the $10.4 billion that is generated by school property taxes. Additionally, things that aren’t now taxed — like candy and gum, newspapers, textbooks, personal care services, basic TV subscriptions, and theater tickets — would be added to the sales tax levy.

If approved, lawmakers contend someone would have to spend $70,000 on the newly taxed items to equal the elimination of a $5,000 school property tax bill — and experience a tax increase.

Phillyburbs.com

On the one hand, this could be seen as all taxpayers subsidizing the homeowners. Then again, the money is to pay for schools and it isn't fair that only property owners foot the bill, especially if they don't have kids in school anymore. On the other, it could make home ownership a lot more possible to a lot more people in Pa.

It'll never fly. Too many slobs out there biting and clawing at homeowners to fund all the useless splendor in their lives.

If the bank takes your house you're a victim. If the government does you're a deadbeat and degenerate.

All you people with no kids need to pay for my kids!!!!

reply to post by FortAnthem
I kind of hope this idea spreads and home owners not having to pay property taxes becomes a common thing. I would not mind paying a little more in sales tax to do it (my state has no state income tax). I feel it is bogus to basically have to pay rent to the city, county and state just to keep your own property that you have paid for. I've seen too many people lose their homes for past due property taxes than is necessary. Your place of residence should be a refuge that nobody can take away.

Originally posted by FortAnthem


On the one hand, this could be seen as all taxpayers subsidizing the homeowners. Then again, the money is to pay for schools and it isn't fair that only property owners foot the bill, especially if they don't have kids in school anymore. On the other, it could make home ownership a lot more possible to a lot more people in Pa.

1 has observed the issues with these property taxes etc. in the PA region so hopefully some homeowners will find some ease...

NAMASTE*******

I live in Philly, which is closing down public school after public school.

Trust me - if you're raising your kids in Philly, you don't care whether they're well-educated or not. You don't even care if they survive their childhood.

The schools don't deserve the taxes. This city is an absolute madhouse when it comes to kids and education. I hope others in PA fare better.

reply to post by FortAnthem

Then again, the money is to pay for schools and it isn't fair that only property owners foot the bill, especially if they don't have kids in school anymore.

Good schools = good neighbors = good neighborhoods = safe neighborhoods
If you want to live in a safe neighborhood with good nieghbors as you get into your seinor years, you must support the reason good people stay there. Which means you must support the schools.

While I like the idea of my property tax going down, I would rather pay a bit more to differentiate my schools from the gangbanger schools across town.

I'm starting to think this may not be such a deal after all. You have to ask yourself the questions; Who is this really gonna benefit and why are they doing this now?

Imagine all those businesses that no longer have to pay taxes on the properties they own or rent out. Commercial leasing companies will make a killing off of this and so will big corporations who own property. Where will the state make up for that income? Off the backs of the common working man, that's where.

Also, with the housing market the mess that it is today, much of the properties are in foreclosure or have been bought up by property management companies to be rented out or held onto until the market improves. Many banks hold back on fully foreclosing on properties because they don't want to pay the property taxes so the loan holder gets to live there for free. How long do you think this will go on after the property tax is repealed?

I could see the mortgage companies start cracking down and throwing people out of their homes in record numbers if this passes because they would no longer have to deal with the liability of property taxes. They could hold onto their foreclosed properties, artificially driving up prices, until the market improves and they can sell them at a profit.

This will help out a few elderly people and those who have paid off their homes but, for the most part, I see the big banks and corporations making out the most on this deal while the cost of schooling is passed on to the common taxpayer.

You also have to wonder how this will affect local control of school budgets. If the locality has no power to increase its revenues, how can they provide decent services and how can the state justify giving one area more of a share of the pot than all the other school districts?

It looks to me like this will result in a rush to the lowest common denominator as all schools have to be funded equally until they're all as bad as the big city school district.

I think they are just talking about eliminating the portion of property tax that funds schools, not property taxes in their entirety. The school funding would then come from sales tax, income tax, gambling and taxes on other specific items.

I don't see it as that big of a deal really.