Property Taxes for Multi-County School Districts
February 28, 2024 04:18 PM to All Senate Members
Circulated By
Senator John Kane
D Senate District 9
Along With
Sen. Carolyn Comitta
D Senate District 19
Memo
Section 672.1 of the Pennsylvania Public School Code creates a taxation system that is unfair to property taxpayers. This archaic and complex system – is difficult to explain to citizens – leads to wide and disparate millage swings that can result in tax increases that are in the double digits, well beyond limits set forth by the Act 1 index.
The purpose of Section 672.1 is to provide uniform and fair taxation for taxpayers in multi-county school districts. However, because this law has been largely untouched since its inception in 1949, it is not consistent with other laws – most importantly Act 1 – and, as such, fails to meet its intended purpose.
Act 1 is a property tax relief bill passed by the Pennsylvania legislature in 2006, which set a cap on the amount a school district can raise property taxes. The cap is calculated with an eye toward allowing school districts to cover normal inflationary cost increases. If a school district wishes to raise taxes above that cap, the increase must be voted on in a district-wide referendum. Because Section 672.1 predates Act 1, there exists an unintentional consequence that often leads to significant tax increases above the Act 1 index. This is something that neither Section 672.1 nor Act 1 intended to take place.
Legislation we plan to introduce is simple and comes with no impact to the Commonwealth's budget. By amending Section 672.1 to allow multi-county school districts to apply the Act 1 index equally and fairly to both counties (just as single county systems apply to taxpayers in their one county), this would result in:
Please join us in addressing this challenge for 88 school districts in the Commonwealth by becoming a co-sponsor.
The purpose of Section 672.1 is to provide uniform and fair taxation for taxpayers in multi-county school districts. However, because this law has been largely untouched since its inception in 1949, it is not consistent with other laws – most importantly Act 1 – and, as such, fails to meet its intended purpose.
Act 1 is a property tax relief bill passed by the Pennsylvania legislature in 2006, which set a cap on the amount a school district can raise property taxes. The cap is calculated with an eye toward allowing school districts to cover normal inflationary cost increases. If a school district wishes to raise taxes above that cap, the increase must be voted on in a district-wide referendum. Because Section 672.1 predates Act 1, there exists an unintentional consequence that often leads to significant tax increases above the Act 1 index. This is something that neither Section 672.1 nor Act 1 intended to take place.
Legislation we plan to introduce is simple and comes with no impact to the Commonwealth's budget. By amending Section 672.1 to allow multi-county school districts to apply the Act 1 index equally and fairly to both counties (just as single county systems apply to taxpayers in their one county), this would result in:
- A system that is fair and equitable;
- A system that taxpayers could understand;
- A process that is fair to all taxpayers, with everyone being treated equally;
- No additional cost to the Commonwealth; and
- Local control for school districts.
Please join us in addressing this challenge for 88 school districts in the Commonwealth by becoming a co-sponsor.
Legislation
Document - Introduced as SB 1239
Last updated on February 28, 2024 04:24 PM
Property Taxes for Multi-County School Districts
February 28, 2024 04:18 PM to All Senate Members
Circulated By
KANE and COMITTA
Memo
Section 672.1 of the Pennsylvania Public School Code creates a taxation system that is unfair to property taxpayers. This archaic and complex system – is difficult to explain to citizens – leads to wide and disparate millage swings that can result in tax increases that are in the double digits, well beyond limits set forth by the Act 1 index.
The purpose of Section 672.1 is to provide uniform and fair taxation for taxpayers in multi-county school districts. However, because this law has been largely untouched since its inception in 1949, it is not consistent with other laws – most importantly Act 1 – and, as such, fails to meet its intended purpose.
Act 1 is a property tax relief bill passed by the Pennsylvania legislature in 2006, which set a cap on the amount a school district can raise property taxes. The cap is calculated with an eye toward allowing school districts to cover normal inflationary cost increases. If a school district wishes to raise taxes above that cap, the increase must be voted on in a district-wide referendum. Because Section 672.1 predates Act 1, there exists an unintentional consequence that often leads to significant tax increases above the Act 1 index. This is something that neither Section 672.1 nor Act 1 intended to take place.
Legislation we plan to introduce is simple and comes with no impact to the Commonwealth's budget. By amending Section 672.1 to allow multi-county school districts to apply the Act 1 index equally and fairly to both counties (just as single county systems apply to taxpayers in their one county), this would result in:
Please join us in addressing this challenge for 88 school districts in the Commonwealth by becoming a co-sponsor.
The purpose of Section 672.1 is to provide uniform and fair taxation for taxpayers in multi-county school districts. However, because this law has been largely untouched since its inception in 1949, it is not consistent with other laws – most importantly Act 1 – and, as such, fails to meet its intended purpose.
Act 1 is a property tax relief bill passed by the Pennsylvania legislature in 2006, which set a cap on the amount a school district can raise property taxes. The cap is calculated with an eye toward allowing school districts to cover normal inflationary cost increases. If a school district wishes to raise taxes above that cap, the increase must be voted on in a district-wide referendum. Because Section 672.1 predates Act 1, there exists an unintentional consequence that often leads to significant tax increases above the Act 1 index. This is something that neither Section 672.1 nor Act 1 intended to take place.
Legislation we plan to introduce is simple and comes with no impact to the Commonwealth's budget. By amending Section 672.1 to allow multi-county school districts to apply the Act 1 index equally and fairly to both counties (just as single county systems apply to taxpayers in their one county), this would result in:
- A system that is fair and equitable;
- A system that taxpayers could understand;
- A process that is fair to all taxpayers, with everyone being treated equally;
- No additional cost to the Commonwealth; and
- Local control for school districts.
Please join us in addressing this challenge for 88 school districts in the Commonwealth by becoming a co-sponsor.
Document
Introduced as SB 1239
Last Updated
February 28, 2024 04:24 PM
Generated 03/21/2025 11:22 PM