HARRISBURG, Pa. (WHTM) — New legislation proposed in Pennsylvania would eliminate school property taxes and establish “a more modem and reliable way to fund education” in the state. State Representative Frank Ryan (R-Lebanon) introduced House Bill 13.

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“House Bill 13 would eliminate property taxes and reduce rent. It would make it easier to buy, improve and remain in your own home, and would attract businesses and jobs to the Commonwealth, strengthening our families and our state’s economy,” Rep. Ryan said. “Schools would have reliable funding and their savings caps would be lifted, enabling them to more effectively manage their finances.

Ryan’s proposed bill, if passed, would:

  • replace property tax revenue with sales and income taxes
  • increase the Personal Income Tax by 1.85% with those funds staying local to the school district
  • increase the state Sales and Use Tax by 2% with those funds going to the county to allocate to the school districts within that county
  • impose a 2% sales tax on clothing and food, except WIC/SNAP purchases, which would remain tax exempt
  •  increase the Personal Income Tax to 4.92% on a new category of income – retirement income

“In this legislation, I worked to resolve the issues that were raised in prior bills to eliminate property taxes. It is clear that any solution will require sacrifice on the part of all Pennsylvanians,” Rep. Ryan added.

To learn more about the proposed legislation, click here.