"As Is"

What if we don't make any changes?

  • Cost: $16B /year
  • Income Tax: 3.07%
  • Sales Tax: 6%
  • Food & Clothing: 0%
  • $16B+ taxes on properties
  • School Property Taxes rise 3.2% every year, faster than inflation
  • 10,000 homes /yr lost due to inability to pay school property taxes
  • Schools face 'unfunded mandates' by the state, passed on to property owners
  • Fairness: Awful! (Concentrates taxation on property owners to fund schools)
See who is affected

The 'status quo' guarantees unfair taxation

Our Plan - House Bill 13

Eliminate the School Property Tax fairly!

  • Cost: $16B /year
  • Income Tax: 4.92% (1.85% of it is local)
  • Sales Tax: 8% (2% of it is local)
  • Food & Clothing: 2% (all is local)
  • Retirement Income at 4.92%
    NOT Social Security
    NOT Contributions already taxed
    NOT Pensions 'in lieu of' SS
    NOT Railroad retirement
  • $0 school taxes on properties
  • Schools receive yearly funding increases intrinsically without needing to raise Sales/Income tax further
  • 0 homes lost due to inability to pay school property taxes
  • Taxes to fund schools based on 'ability to pay'
  • Includes rental reduction (if landlord passed on property tax increases to you in the last 5 years)
  • Additional Sales/Income tax are local (not passing through Harrisburg)
  • Fairness: Best. (Balanced funding from visitors, PA's working families and a smaller amount from retirees)
See the Plan Details

Fair, equitable, and saves seniors $2B

Old Plan (SB76)

Not viable / No sponsor since 2019

  • Cost: $16B /year
  • Income Tax: 4.95%
  • Sales Tax: 7%
  • Food & Clothing: 7%
  • $0 school taxes on properties
  • 0 homes lost due to inability to pay school property taxes
  • Schools receive yearly funding increases intrinsically without needing to raise Sales/Income tax further
  • Taxes to fund schools based on 'ability to pay'
  • No rental reduction guarantee
  • Additional Sales/Income tax pass through Harrisburg
  • Additional local tax collected for special projects (buildings)
  • Fairness: Poor. Burden moved to PA working families, causing them to leave (which destabilizes the state revenue) and retirees to move in (adding senior care costs)
See the fate of SB76

This legacy bill isn't equitable to all residents, low legislative support

Additional Options

Other options and their pros/cons

Constitutional Amendment

This prohibits property taxes

  • Cost: $16B /year
  • Income Tax: (not set)
  • Sales Tax: (not set)
  • Food & Clothing: (not set)
  • On its own, prohibits prop taxes (the "WHAT")
  • BUT, Must be paired with an actual plan like HB13, above (the "HOW")
  • Otherwise, while legislators are forced to act, it may result in a haphazard, rushed plan to raise $16B/yr
  • Minimum 4-6 years to enact (2 legislative sessions and poll vote, plus a bill to fund schooling)

Defines the "What" but not the "How"