Property-tax reform bill headed to Pa. Senate - abc27 WHTM

Property-tax reform bill headed to Pa. Senate

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A bill that would give Pennsylvania school districts the ability to reduce or eliminate their property taxes is headed to the state Senate.

House Bill 1189, authored by Rep. Seth Grove (R-Dover), was approved by the House on Wednesday.

Grove's proposal, known as the Optional Property Tax Elimination Act, would allow school districts to use an "elimination tax" to raise revenue lost by cutting property taxes.

The elimination tax would consist of an earned income tax, business privilege tax, and mercantile tax, or a combination of any of those taxes.

"House Bill 1189 provides a multitude of options for school districts to deal with their property taxes," Grove said in a statement. "In areas where the local populace is demanding elimination, it eliminates. In areas where the local populous wants reductions, it reduces. In areas that want to be left alone, it allows them to keep the status quo.

"This flexibility is why House Bill 1189 will be successful," he said. "It does not mandate a one-size-fits-all fix. It allows local communities to choose their tax base."

House Bill 1189 is the first part of a four-bill package to allow for the elimination of property taxes. The remaining three bills are expected to face third and final consideration when the House resumes session on Oct. 15.


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