Property Tax Relief: The Devil’s in the Details Karen Miller, Executive Director, Pennsylvania...
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Transcript of Property Tax Relief: The Devil’s in the Details Karen Miller, Executive Director, Pennsylvania...
Property Tax Relief: The Devil’s
in the Details
Karen Miller, Executive Director, Pennsylvania
Economy League's State Office
www.IssuesPA.net
3
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
4
Property Tax Relief:
There’s a reason why – after decades –
it’s still not a reality:
The Devil’s in the Details.
5
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?
6
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
8
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
9
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
11
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
12
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
Share
» Based on $600 million in gambling revenues
13
Property Tax Relief:
The Devil’s also in the Winners and Losers.
14
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…
15
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