Senate Approves Property Tax Reform Bill

Senator White Backs Move to Completely Eliminate Property Taxes

The State Senate today passed a property tax reform plan that would allow voters to decide in the 2006 primary election whether to reduce school property taxes by raising local earned income taxes. However, the measure does not go far enough, according to Senator Don White, R-41st District, who also supported an effort to completely eliminate residential property taxes.

Prior to a vote on Senate Bill 30, the Senate voted 12-38 against an amendment similar to the STOP (Stop Taxing Our Property) proposal which would have eliminated residential property taxes. Instead, the Senate adopted a resolution calling for a study of the impact of such a proposal. Senator White voted for the STOP amendment.

"Senate Bill 30 is a good start, but does not go far enough," said Senator White. "The people of my district are not looking for a reduction in property taxes. They want property taxes eliminated. However, I also voted for Senate Bill 30 because it is clear there is not enough support in the Senate for total elimination and it is imperative we provide homeowners with some property tax relief now."

Under SB 30, the minimum property tax reduction offered in 2006 would be at least 35 percent of the maximum homestead exclusion. In addition, the legislation requires voter approval before school districts can increase tax rates beyond the rate of inflation.

SB 30 would also double the size of Pennsylvania's popular Property Tax and Rent Rebate Program – increasing payments by $131 million and enabling 281,000 additional low income seniors to receive tax relief.

"It is my sincere hope passage of SB 30 will move the debate on property tax reform forward," said Senator White. "Since I have been in office finding a solution to this problem has been extremely frustrating, but finally we are making some progress.

SB 30 now goes to the state House of Representatives for consideration.