Harrisburg, Mayo 14, 2015 – Today, State Senator Vincent Hughes announced he has introduced SB 118, Governor Wolf’s proposal to provide $3.8 billion in property tax relief for Pennsylvania’s homeowners as part of the 2015-2016 State Budget.
SB 118 would totally eliminate school district property taxes for approximately 270,000 senior citizens. Renters with incomes of up to $50,000 will also be eligible for a $500 rent rebate. Certain school districts will also be able to provide millage rate reductions to reduce property taxes across the board.
In Philadelphia, residents would see historic reductions in the city’s wage tax in addition to property tax relief. The city would also receive funding to eliminate its local cigarette tax and provide relief from its 8% sales tax.
“If enacted, this proposal will cut school property taxes by $3.8 billion,” said Senator Hughes. “That would result in a 50 percent reduction in property taxes for the average homeowner and allow a large number of school districts to totally eliminate school property taxes for homeowners and business. I am proud to be offering Governor Wolf’s property tax relief plan in the Pennsylvania Senate.”
“We know that property taxes have skyrocketed in the past four years,” said Senator Hughes. “Thanks to former Governor Corbett’s massive cuts in state education funding, over 90 percent of local school districts have been forced to raise property taxes. This package is the relief that Pennsylvania’s homeowners desperately need.”
“This legislation should attract bipartisan support in the Senate,” said Senator Hughes. “While the House of Representatives acted on a plan yesterday, I believe the Wolf Plan is superior. I look forward to the upcoming debate on this issue as we work to provide historic school district property tax relief to the people of Pennsylvania.”
The property tax cuts would be achieved through changes to personal income tax and sales tax to be passed by the General Assembly. The proposal would also keep in place Pennsylvania’s existing limits on school property tax increases and enact further restrictions on when school districts can raise property taxes.