Property Tax Relief:
The Devil’s in the
Details
Karen Miller, Executive Director,
Pennsylvania Economy League's
State Office
www.IssuesPA.net
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
3
Property Tax Relief:
There’s a reason why – after decades –
it’s still not a reality:
The Devil’s in the Details.
4
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?
5
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
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www.IssuesPA.net
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%)
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» Based on $600 million in gambling revenues
Property Tax Relief:
A Tale of Two Districts
Lower Merion
Reading
Based on formula
Based on formula
$55,190 total
• $7.2 million
After minimum guarantee
• $7.3 million
After maximum limit
• $5.3 million
» Based on $600 million in gambling revenues
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Property Tax Relief:
Per Student
» Based on $600 million in gambling revenues
10
Property Tax Relief:
A Tale of Two Districts
Lower Merion
Reading
Based on formula
• $8.37 per student
• $55,190 total
After minimum guarantee
• $1,111 per student
• $7.3 million
Based on formula
• $503 per student
• $7.2 million
After maximum limit
• $370 per student
• $5.3 million
» Based on $600 million in gambling revenues
11
Property Tax Relief:
Change in the State Share
Harrisburg Metropolitan Area:
The Effects of Different School Aid Proposals on Revenues per Student
in Low and High Tax Base School Districts
Revenues per Student
$10,000
$7,500
Federal Aid
Income Tax
$5,000
Property Tax
$2,500
$0
State Aid
Current
After HB
113
Lebanon SD
Current
After HB
113
Harrisburg City SD
Current
After HB
113
Derry Township SD
» Based on $600 million in gambling revenues
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Property Tax Relief:
The Devil’s also in
the Winners and Losers.
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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…
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
www.IssuesPA.net