PA Governor Rendell Urges Lawmakers to Provide Property Tax Relief for PA Homeowners Now

Governor Proposes Eliminating School Property Taxes for 200,000 Senior Homeowners; Calls on Legislative Leaders to Lead

PITTSBURGH, March 6 /PRNewswire/ -- Standing in the home of two senior citizens in Pittsburgh who would see their school property taxes eliminated under legislation he has proposed, Governor Edward G. Rendell again called on the Legislature today to finish its work to provide property tax relief for all Pennsylvanians.

The Governor said enacting a property tax relief package will eliminate school property taxes for nearly 200,000 senior citizen homeowners. In the majority of counties, including Allegheny, school property tax bills could go to zero for almost 30 percent of seniors who participate in the state's Property Tax/Rent Rebate Program, Governor Rendell added.

"As I have said in the past, I am ready to meet with legislators and I am ready to work with legislators to get Pennsylvania residents property tax relief now," Governor Rendell said. "Now is the time for the leaders of the House and Senate to lead and accomplish tax relief for all Pennsylvanians. We're close and we need to get this done. Homeowners like Joe and Sara Paravati are waiting for us to act."

Governor Rendell added: "I called the Legislature into Special Session last September to deliver property tax relief for the state's residents. I have continued to reach out to the Legislature to push for action on property tax relief, including offering a widely supported compromise plan. We need to end debate and make history by passing a property tax relief package now," the Governor said while standing next to Joe and Sara Paravati in their Pittsburgh home.

"This is important. Homeowners need relief from property taxes that consume more and more of their earnings and force too many out of their homes," Governor Rendell said. "Because so many senior citizens are finding it harder to meet the rising cost of school property taxes, we need to pass legislation that also increases the number of seniors who get property tax rebates and the level of those rebates."

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, according to the Governor.

Governor Rendell added: "This property tax relief package will help keep school taxes from rising. Districts that seek to impose large tax increases will need voter approval to do so, unless those tax increases are caused by declining state funds, growing enrollment or other major changes that are out of their control.

"If we pass the property tax relief package 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," said the Governor. "The longer it takes for our Legislature to act, the longer our senior citizens will have to pay school property tax bills, which will be sent in July."

The Governor wrote House Speaker John M. Perzel last week, stating: "I am prepared to participate in the activities of the Conference Committee in whatever manner the leaders deem appropriate."

The Governor said the Conference Committee should negotiate a bill based on House Bill 39, with certain modifications. He said with his suggested changes, the law would accomplish the following:

* Enable school districts to impose or shift to a Personal Income tax;

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

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

* Establish 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

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

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.

In 27 of Pennsylvania's 67 counties, more than 40 percent of the eligible seniors will pay no property taxes when the gaming and expanded property tax rebate grants are combined. In 48 counties -- the overwhelming majority of counties -- property tax bills could be eliminated for 30 percent or more of seniors who participate in the Property Tax/Rent Rebate Program.

The Governor consistently has called on the General Assembly to deliver on the promise of property tax relief since taking office in 2003. In July 2004, Governor Rendell signed into law Act 72, which 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/.