HARRISBURG, June 16, 2006 - State Sen. Michael Stack today
praised the House for voting to approve legislation that will
help relieve the crushing burden of property taxes for seniors
and provide wage tax relief to working families in Philadelphia.
“For years, I have fought hard to ensure that those of us who
live in the Northeast are treated fairly when it comes to
taxes,” said Stack (D-Philadelphia). “It’s certainly been a hard
fight, and it is far from over. However, I am pleased that the
state Senate and state House have passed property tax reform
legislation.”
The proposal, known as Special Session House Bill 39, will go to
Gov. Ed Rendell, who has said he will sign the measure into law.
House Bill 39’s central tax-relief feature for Philadelphia
seniors is a vast expansion of the Property Tax and Rent Rebate
Program (PTRR). By increasing the income limit for this program
from $15,000 to $35,000, the PTRR expansion will allow an
additional 400,000 seniors statewide to receive tax rebates.
Eligible Pennsylvanians will receive rebates ranging from
$250-$650, depending upon income. The rebates would take effect
for taxes being paid this year, which means the new rebate
checks would be sent out in 2007.
The plan also provides supplemental rebates to help senior
homeowners in Philadelphia, Pittsburgh, and Scranton. Once
gaming revenue starts rolling in, the rebates will range from
$375-$975 for eligible seniors who reside in Philadelphia,
Scranton, and Pittsburgh, and have incomes below $30,000. These
seniors will receive extra relief due to their cities’ high wage
taxes.
House Bill 39 will use an estimated $1 billion in gaming funds
to cut property taxes outright for property owners in each of
the state’s school districts, except for Philadelphia. City
residents will instead reap the benefits of a wage tax
reduction.
Under House Bill 39, Philadelphia’s wage tax will be reduced
below 4 percent. A Philadelphia worker making $50,000 a year
will receive a $134 wage tax reduction.
“Lawmakers in Harrisburg recognize that Philadelphia has one of
the highest wage tax rates in the nation and that this situation
discourages businesses from locating and expanding in our city,”
said Stack. “That’s why substantial gaming revenues will be
going towards wage tax relief in Philadelphia.”
The Senate overwhelmingly passed the compromise tax relief plan
in May. The House delayed consideration of the plan arguing that
a more expansive plan could be crafted using an expansion or
increase of the state’s 6 percent sales tax. The Senate
indicated that there was little support for hiking the sales tax
levy.
House Bill 39 passed the House by a vote of 137-61.
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