Property Tax Reform

[squarian]

Originally Posted by scrapp

we'd be better off keeping property tax and jacking up the homestead exemption.

That might partially answer the social-capital problem (property value not accounting for owner's value to community, with the resulting cost to the community when changes in property value force moves).

But how does it help with school finance inequities and the zipcode lottery? Zombie districts like Sto-Rox and Duquesne would still be dependent only on what they could raise from their own property tax base, true?

A satisfactory property tax reform in PA has to achieve at least two things: first, either place prop tax on a rational and fair basis or end it altogether, and secondly, resolve the extremely unfair way schools are funded in the state. This isn't just idealism; it's also practical politics, because these two aims combined are the best, most likely way to bring both sides of the political spectrum together on any proposal.

[squarian]

Originally Posted by eschaton

Can anyone explain to me how to ensure they are taxed at roughly the same rate they are currently?

I'm not sure I understand why you think businesses would pay less. Raising the rate 1% will affect business as much as private citizens, and many of the loopholes which HB 1776 would close are items businesses are more likely to buy than individuals, so the proportion of the total paid by business may actually go up slightly.

[scrapp]

Originally Posted by squarian

A satisfactory property tax reform in PA has to achieve at least two things: first, either place prop tax on a rational and fair basis or end it altogether, and secondly, resolve the extremely unfair way schools are funded in the state. This isn't just idealism; it's also practical politics, because these two aims combined are the best, most likely way to bring both sides of the political spectrum together on any proposal.

I don't think the PA legislature is capable of producing a satisfactory property tax reform. That last task force showed they are not going to do anything except collect their paychecks.

The advantage of increasing the homestead exemption is that it can be done without having to do anything at the state level. I think Chris Briem posted about this on the nullspace blog a while back.

While you are collecting links:

County Exec, State Senator and City Councilman Oppose

In a tour de force of irony, County Exec Fitzgerald, Councilman Peduto and Senator Fontana will take a stand against court ordered reassessments on the grounds they are unfair. Presumably, they are perfectly willing to continue the unfairness of allowing owners with egregious undervalued assessments to pay far below their fair share of property taxes while at the same time forcing those with correct or too high assessments to pay far more than their fair share of taxes. How interesting it is what some call unfair.

...

[squarian]

Originally Posted by scrapp

I don't think the PA legislature is capable...The advantage of increasing the homestead exemption is that it can be done without having to do anything at the state level.

But if nothing is done statewide, it has to be done district by district, borough by borough, which is even more hopeless than the Gen Ass. And it still doesn't fix the zipcode lottery.

Regarding the Gen Ass and its limits: sure, it goes without saying that PA's political system is FUBAR. But you go to war with the army you have, so citizens' choices are limited to either taking some kind of role, even if only as an informed observer, in the legislative process here, or the alternatives.

The alternatives, AFAICT, are: 1) armed insurrection, 2) emigrating from PA to civilization, 3) despair and suicide.

[eschaton]

Originally Posted by squarian

I'm not sure I understand why you think businesses would pay less. Raising the rate 1% will affect business as much as private citizens, and many of the loopholes which HB 1776 would close are items businesses are more likely to buy than individuals, so the proportion of the total paid by business may actually go up slightly.

Because a business, especially a large business, can easily make purchases outside of the county and circumvent a tax entirely?

[squarian]

Originally Posted by eschaton

Because a business, especially a large business, can easily make purchases outside of the county and circumvent a tax entirely?

Yes, but how would that be different whether the sales tax were 6% or 7%? Presumably, every business which can avoid paying tax at 6%, already is. Very few businesses which are in a position to avoid sales tax would choose to do so only because the rate increases by one point. Capturing revenue from business expenditures might be a worthy goal, but as a consideration in this specific proposal (HB 1776) it's beside the point.

[squarian]

The (Lansdale) Reporter, sister publication of the Pottstown Mercury and another east-state small town paper, has endorsed HB 1776.

[Rep. Jim Cox, R-129th, the author,] said his bill has bipartisan support, but whether it has enough support to get the traction this issue needs is an unknown. The bill gets its first public reading during a finance committee hearing in Harrisburg on May 21.

Jim Cox
interview, linked from Patch.com.

School districts proposing or considering property tax increases to date, according to the Pennsylvania School Board Association (PSBA):


Allegheny Region
Gateway
Pine-Richland
West Mifflin
North Hills


Elsewhere in PA
Norwin
Bethlehem Area
Hempfield
Ligonier Valley
Dallas
Conemaugh
New Brighton
Lancaster
Parkland
Montgomery Area
Tulpehocken
Windber
Catasauqua
Exeter
East Penn
Palisades
Selinsgrove
Towanda
Williamsport
West Shore
Shikellamy
Marple Newtown
Quakertown
Springfield
Oxford
Haverford
New Hope-Solebury
Palmyra
Annville-Cleona
Stroudsburg
East Lycoming
Central Dauphin
Wilson Area
Fleetwood
Boyertown
Hatboro-Horsham
Athens Area
Gettysburg
North Pocono
North Cambria
Salisbury
Juniata County
Oley Valley
Northern Lebanon
Downington
Bermudian Springs
Pottstown
Southern York
Milton
Wilson
Solanco
Ridley
State College
Jeanette City
Penn-Trafford
Gov. Mifflin
Wallingford-Swarthmore
West Chester
Peters Township
Pennsbury
Meyersdale
Pleasant Valley
Connellsville
Pequea Valley

[squarian]

The PG comes out with an editorial critical of the Fontana bill (SB 1462), while tacitly endorsing the House Task Force recommendations:

The real solution to the assessment mess is a uniform state law requiring periodic revaluations.

[PGHproud]

HB 1776, The Property Tax Independence Act...
Seems to be catching steam again.
This would be a major win for the state of PA. Lets cross our fingers!!!