Area homeowners in
line for property tax reductions, personal income tax hikes
By SHEILA
BOUGHNER-BLAIR
4/4/03
Special thanks to The Derrick for allowing this story to be posted
THE CHANGES ARE PART OF GOV. RENDELL'S
"PLAN FOR A NEW PENNSYLVANIA."
Area homeowners would receive property tax reductions ranging from 30 to 60 percent under Gov. Ed Rendell's proposed $1.5 billion property tax cut.
Their personal income tax, however, would increase by 34 percent.
The changes in tax rates are part of Rendell's "Plan for a New Pennsylvania," which would raise the state's share of basic education funding from 36 to 50.
The burden would be shifted from homeowners to the state with a $1.5 billion property tax rebate, which would be distributed to school districts according to the state's basic education funding formula. That formula is designed to neutralize inequities between districts and funnel additional funds to poor or rapidly growing school districts.
Each residential homeowner in a district would receive an equal share of the district's rebate, regardless of the value of their home.
Homeowners in the Franklin, Valley Grove, Allegheny-Clarion Valley, Clarion Area, Clarion-Limestone, Keystone and Redbank Valley districts would realize a 30 percent property tax reduction under the plan. The percent reduction for other districts includes Cranberry, 42.47; Oil City, 35.43; Titusville, 43.83; Forest Area, 33.13; North Clarion, 43.87; and Union, 60 percent.
Individual reductions for area districts range from $111.90 in Redbank Valley to $417.30 in Forest Area.
The increase in income tax, from 2.8 to 3.75 percent, would generate $2.2 billion for the plan.
Additional revenues would be generated by closing corporate tax loopholes, legalizing slot machines at some of the state's racetracks, increasing the tax on beer, creating a tax on cell phones and charging a fee to drivers convicted of moving violations.
In addition to funding the property tax rebate, the additional revenue would be used to fund a number of education initiatives such as all-day kindergarten, pay the interest on a $2 billion economic development bond, and add $700 million to the general fund.
The total amount of a district's rebate divided by the number of owner-occupied housing units in the district yields the proposed tax reduction per homeowner.
The governor's office has posted the proposed rebate for each of the state's 501 school districts on the state's Web site, at www.state.pa.us.
The number of owner-occupied housing units in each school district is available on the Internet at www.nces.ed.gov.
Here are the numbers for area school districts including total tax rebate, number of owner-occupied dwellings and tax reduction per homeowner:
VENANGO COUNTY
Cranberry
Total reduction - $1,067,360
Dwellings - 3,241
Individual reduction - $329.33
Franklin
Total reduction - $1,221,224
Dwellings - 4,805
Individual reduction - $254.16
Oil City
Total reduction - $1,302,937
Dwellings - 4,605
Individual reduction - $282.94
Titusville
Total reduction - $916,535
Dwellings - 4,162
Individual reduction - $220.22
Valley Grove
Total reduction - $437,082
Dwellings - 2,267
Individual reduction - $192.80
FOREST COUNTY
Forest Area
Total reduction - $790,792
Dwellings - 1,895
Individual reduction - $417.30
CLARION COUNTY
Allegheny-Clarion Valley
Total reduction - $383,529
Dwellings - 1,893
Individual reduction - $202.60
Clarion Area
Total reduction - $518,914
Dwellings - 2,008
Individual reduction - $258.42
Clarion-Limestone
Total reduction - $426,699
Dwellings - 2,177
Individual reduction - $196
Keystone
Total reduction - $334,255
Dwellings - 2,387
Individual reduction - $140.03
North Clarion
Total reduction - $331,446
Dwellings - 1,654
Individual reduction - $200.39
Redbank Valley
Total reduction - $298,220
Dwellings - 2,665
Individual reduction - $111.90
Union
Total reduction - $440,169
Dwellings - 1,351
Individual reduction - $325.81
The increase in income tax would amount to $190 for a wage earner making $20,000 a year, $285 for someone earning $30,000, and $475 for someone earning $50,000.