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Jane Richey / March 21, 2012

Seeking to Swap Property Tax With Hikes in Other Taxes

A new proposal might eliminate property taxes in Pennsylvania, only to replace them with a 1 percent increase in sales and personal income taxes.

A bipartisan group of lawmakers believe this trade-off would help taxpayers and school districts alike.

The plan, being crafted by state Rep. Jim Cox, R-Berks, is expected to be introduced formally within the next two weeks as House Bill 1776.

The legislation would offset the state’s $12 billion in annual property tax revenue with the new revenue from the higher personal income and sales taxes. Pennsylvania’s property tax system is the fundamental local funding source for school districts.

Read more.

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Filed Under: Constitutionally Limited Goverment, Fiscal Responsibility Tagged With: House Biull 1776, property tax, Representative Jim Cox

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