Still Waiting for the Legislature, PA Governor Rendell Says Homeowners Need Property Tax Relief Now

NEW CASTLE, Pa., March 31 /PRNewswire/ -- Pennsylvania Governor Edward G. Rendell continued his strong call for property tax relief today as he visited the home of a Lawrence County couple, senior citizens who would benefit from significant reductions in school property levies.

In the past month, the Governor has taken his call for immediate property tax relief directly to Pennsylvania homeowners, as he has urged action by state lawmakers. In meeting with homeowners and seniors, he has said tax relief legislation would dramatically reduce - or eliminate - their property tax burden.

With the legislation, 463,000 more seniors on limited incomes will get extra relief immediately and, once combined with gaming funds, 40 percent will have their school property taxes fully reimbursed.

"By visiting with the people who would benefit the most from property tax relief, I'm hoping House and Senate leaders will recognize that they need to work as hard as ever to reach a compromise on appropriate legislation," the Governor said during a stop today at the New Castle residence of Frank and Alice Bonfield. "While this issue is something I've been pushing for many, many months, property owners have been waiting for help for 30 years.

"Homeowners who are feeling the heavy burden of growing property tax bills need the Legislature to produce a proposal that would lighten the financial load of homeowners across the commonwealth," Governor Rendell said. "For Frank and Alice, a property tax measure could erase their annual levy.

"I will continue visiting senior citizens' homes until the Legislature sends me a bill that will break the cycle of rising - and crushing - property tax bills. Hopefully, the next time I visit someone's home it will be to sign into law what will be an historic piece of legislation."

Legislation passed by the Senate earlier in February would ensure that homeowners in every school district can receive their share of the $1 billion in funding for tax relief from gaming. The bill also raises the income cap for Pennsylvania'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.

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 senior citizens statewide who earn up to that annual income amount, the Governor reminded.

"What a tremendous help that would be to the thousands of Pennsylvanians who are on fixed incomes," the Governor said. "By acting now, we can completely eliminate school property taxes for nearly one out of every three senior citizens who earn less than $30,000 a year."

The total number of senior citizens receiving property tax rebates under the state's Property Tax/Rent Rebate Program would increase from 178,000 to 633,000, and nearly 200,000 of these senior citizen homeowners would pay no school property taxes at all once gaming revenue is realized.

The Governor has pledged his cooperation to a special Conference Committee of House and Senate leaders charged with writing a property tax relief package. And, he has suggested the panel consider legislation that:

-- 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/.