Property Tax Relief: The Devil’s

in the Details

Karen Miller, Executive Director, Pennsylvania

Economy League's State Office

www.IssuesPA.net

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Property Tax Relief:

Gambling Toward Tax Reform – articles on www.IssuesPA.net

• Slots and Property Tax Reduction: Unfinished Business

• In the Game to Win

• Putting a Billion Dollars in Perspective

•  In the Mix

•  Gambling in Other States

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Property Tax Relief:

There’s a reason why – after decades –

it’s still not a reality:

The Devil’s in the Details.

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Property Tax Relief: The Formula

PI/ADM + MV/PI + STR + EM x ADM x NF 1,000

IF < MIN % RELIEF, ADD $$IF > MAX % RELIEF, SUBTRACT $$

DIVIDE BY # QUALIFIED HOMES AND FARMS

IF NECESSARY, ADJUST FOR HOMESTEAD EXEMPTION LIMIT

= PROPERTY TAX RELIEF?

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Property Tax Relief: $5:$1

• Goal: $5 State Gambling Revenue for every $1 Increase in local Earned Income Tax

– Minimum: less than $1 – Average: $3.79– Maximum: $13.51

» Based on $600 million in gambling revenues

www.IssuesPA.net

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Property Tax Relief: Minimums and Maximums

• $63 million in state gambling revenues to boost school districts to minimum guarantee (10%)

• $13 million would not be distributed because of maximum limits (40%)

» Based on $600 million in gambling revenues

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ReadingBased on formula

• $7.2 million

After maximum limit• $5.3 million

Lower MerionBased on formula

$55,190 total

After minimum guarantee

• $7.3 million

Property Tax Relief: A Tale of Two Districts

» Based on $600 million in gambling revenues

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Property Tax Relief: Per Student

» Based on $600 million in gambling revenues

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ReadingBased on formula

• $503 per student• $7.2 million

After maximum limit• $370 per student• $5.3 million

Lower MerionBased on formula

• $8.37 per student• $55,190 total

After minimum guarantee

• $1,111 per student• $7.3 million

Property Tax Relief: A Tale of Two Districts

» Based on $600 million in gambling revenues

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Harrisburg Metropolitan Area: The Effects of Different School Aid Proposals on Revenues per Student

in Low and High Tax Base School Districts

$0

$2,500

$5,000

$7,500

$10,000

Current After HB113

Current After HB113

Current After HB113

Rev

enue

s pe

r St

uden

t

Federal Aid

Income Tax

Property Tax

State Aid

Lebanon SD Harrisburg City SD Derry Township SD

Property Tax Relief: Change in the State

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» Based on $600 million in gambling revenues

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Property Tax Relief:

The Devil’s also in the Winners and Losers.

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Property Tax Relief: Still under discussion

– Referenda – control and accountability for school directors

– Minimum and maximum levels of property tax relief

– Whether to require local income tax increase

– Level of gambling revenues required– The who, where and how’s of the slots

part of this package, and more…

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Property Tax Relief: Still under discussion

– Referenda – control and accountability for school directors

– Minimum and maximum levels of property tax relief

– Whether to require local income tax increase

– Level of gambling revenues required– The who, where and how’s of the slots

part of this package, and more…

www.IssuesPA.net