Property-tax relief for all takes a sucker punch

By Camille "Bud" George

Efforts to gain property-tax relief for all homeowners took one on the chin in the state House of Representatives.

Here's how it unraveled. House Bill 1600 would have provided about $1.5 billion in school property taxes essentially to all homeowners by bumping up the state sales tax to 6.5 percent and the state personal income tax to 3.29 percent.

The added revenues would be combined with proceeds from the state's slots parlors to provide the tax relief. According to projections, HB 1600 would have provided $489 in 2008-09 property-tax relief to homeowners in the Glendale school district, $397 in West Branch, $410 in Philipsburg-Osceola and $420 in Moshannon Valley.

Those projections probably are on the low side. They are based on $400 million in slots proceeds with only half of the 14 approved slots facilities open. In January, the state had accrued $575 million in the property-tax fund from slots.

However, an amendment gutted the original HB 1600, turning all slots proceeds to seniors making $40,000 a year or less. According to the amendment's author, the former House Speaker from Philadelphia, his measure would eliminate property taxes for most seniors.

I voted against the amendment because I'm a man of my word. I've stated that Act 1 -- The Taxpayers Relief Act of 2006 -- was a fine start but more property-tax relief for working families is needed.

I have no problem providing more property-tax relief for deserving seniors. Act 1 recognized their dire situation and enabled 140,000 additional senior citizens across the state to receive expanded rebates under the Property Tax and Rent Rebate program.

My position then -- and now -- is that broad-based property tax relief for all homeowners is needed. The tax relief featured in the original HB 1600 also would have benefitted seniors -- but wouldn't have restricted relief just to seniors.

Republicans and Democrats showed they had the backbone of jellyfish, voting 159-36 for the amendment. Republicans who voted against Act 1 because it did not contain enough broad-based tax relief voted for it. Democrats -- scared to be portrayed as not backing seniors, a valued and important voting bloc -- joined the stampede.

The bill and the amendment are going nowhere fast. The governor has promised to veto it, because it isn't what was promised Pennsylvania taxpayers.

All is not lost. The House did pass a measure that would change our state Constitution so it can provide 100 percent property tax exclusion. It's going to take several years -- the measure requires approval by voters and approval by two sessions of the Legislature, but it is a major step forward.

And all homeowners are scheduled to receive some property-tax relief beginning this summer from slots proceeds.

However, the election-year amendment ploy did great harm to efforts to remove the scourge of school-property taxes.

It's been an uphill battle for 30 years even with the support of seniors. If the support of seniors dribbles away because of the amendment, the fight for broad-based tax reform probably will be doomed.

All seniors can win with broad-based property-tax relief. The Commonwealth will be the net loser with shenanigans that play teeter-totter politics -- pushing one side up and the other down.

We deserve, and can have, better.

--30--