Governor Rendell Stops in Erie to Call on Legislature to Act on Property Tax Relief

ERIE, Pa., April 28 /PRNewswire/ -- Governor Edward G. Rendell today again called on the state Legislature to bring property tax relief to Pennsylvania's homeowners; this time during a visit to the Erie home of Lewis and Renee Minadeo.

Governor Rendell has visited the homes of many Pennsylvanians over the last several weeks to talk with them about the benefits of a strong property tax relief package. If the Legislature moves swiftly to enact a property tax package, more than 463,000 seniors on limited incomes will get extra relief immediately and, once combined with gaming funds, 40 percent would enjoy drastically reduced tax levies, or pay no property tax.

"I have traveled this state for the last several weeks, meeting with homeowners such as the Minadeos," said Governor Rendell. "At every stop, people tell me it's time for the Legislature to act on a property relief package. We will continue to work with our elected officials to get property tax relief for homeowners across Pennsylvania."

Last February, the Senate passed legislation that would ensure that homeowners in every school district would receive their share of the $1 billion in funding for tax relief from gaming. The bill also raises the income cap for the state's successful Property Tax/Rent Rebate Program from $15,000 to $25,000 -- effective this year. Some members of the House have proposed raising the cap even higher.

"Although the Minadeos are currently not eligible for the Property Tax and Rent Rebate program, they would still see their school property tax bill cut by 88 percent if the program is expanded," the Governor said.

Based on a new income cap of $30,000 a year, as the Governor is proposing, and after the $1 billion from gaming is added, school property taxes can be completely eliminated for a third of Pennsylvania's senior citizens who earn up to that annual income amount.

"By acting sooner rather than later, one out of every three senior citizens who earn less than $30,000 a year would have their property taxes totally eliminated," the Governor noted.

In Erie, a total of 14,389 senior citizens would qualify for the Property Tax and Rent Rebate program once it is expanded. This would be an increase of enrollment of 10,335. Of the seniors in the program, 3,301 would have their school property tax bills completely eliminated.

The Governor is working with the special Conference Committee of House and Senate leaders charged with writing a property tax relief package. He has suggested that this panel consider the following in drafting the legislation:

* Enables school districts to impose or shift to a Personal Income Tax;

* Increases the income threshold for seniors and others eligible for
the Property Tax/Rent Rebate Program to $30,000;

* Ensures the appropriate application of the back-end referenda for
school districts that cross county lines;

* Establishes the date that the act becomes law as the date certain for
school districts not currently participating in Act 72 to have issued
debt that is permissible without referenda consideration; and

* Increases the flexibility offered to school districts to permit taxes
to be paid in installments rather than lump sums.

Since taking office in 2003, Governor Rendell has consistently called on the General Assembly to deliver on the promise of property tax relief. He signed Act 72 into law in July 2004. This act reduced property taxes by $1 billion statewide using revenue generated from gaming. After many school boards refused to deliver this property tax relief to their constituents, Governor Rendell called the Legislature into Special Session last September to enact a permanent solution to school property taxes.

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.