Cox, Argall and Others Unveil Property Tax Independence Act
HARRISBURG – Joined by a bipartisan coalition of state legislators, state Representative Jim Cox (R-129) and state Senator David G. Argall (R-29) today in Harrisburg unveiled the Property Tax Independence Act, a proposal to completely replace school district property taxes.
“This legislation offers hope to Pennsylvania residents who aspire to truly own their homes,” Cox said. “Homeowners simply cannot understand how the General Assembly could continue to allow people to lose their homes through no fault of their own and drive citizens and businesses out of Pennsylvania.”
The Property Tax Independence Act would replace revenues currently collected through school district property taxes with alternative, statewide funding sources. The state sales tax would be raised from 6 percent to 7 percent, which would cost Pennsylvania customers one additional penny per $1 of goods they purchase. The personal income tax would be raised from 3.07 percent to 4.34 percent, costing Pennsylvania workers approximately 1 ¼ pennies for every $1 they earn.
The legislation also would close some special interest loopholes in the sales and use tax. Together with some existing gaming revenues, these dollars would be enough to fully replace school district property taxes.
The lawmakers know the plan will work because they based the calculations on a thorough analysis that was conducted last session by the Independent Fiscal Office.
“That study was the piece of the puzzle that had been missing in the past,” Argall said. “We always had a general concept of what it would take to replace school district property taxes. The independent analysis gave us the detailed information we needed to ensure the plan will work.”
Cox is introducing the legislation as House Bill 76 in that chamber and Argall will introduce it as Senate Bill 76 across the hall in the other chamber of the General Assembly.
One-Page Summary of the Property Tax Independence Act
Short Overview of the Property Tax Independence Act
Map of Support in PA House and Senate for the Property Tax Independence Act
Personal Income Tax Component of the Property Tax Independence Act
Sales Tax Component of the Property Tax Independence Act
Representative Jim Cox
Pennsylvania House of Representatives
Media Contact: Daniel Massing
RepJimCox.com / Facebook.com/RepJimCox