(The Center Square) – There’s a new school property tax elimination plan in the Legislature, and rather than hashing it out in hearings, the prime sponsors are taking it into local districts.
Sen. Dawn Keffer and Rep. Wendy Fink, Republicans from central Pennsylvania, announced the tour as they roll out companion proposals: House Bill 1649 and Senate Bill 962.
Together, they hope that a shift in funding public education can ease the burden on lower-income property owners who face endless tax increases as schools struggle to serve students.
“No one should be one life event away from losing their home,” said Keefer. “For too long, Pennsylvania has relied on a broken property tax system that unfairly burdens seniors, working families and homeowners. Our legislation is designed to fix that by replacing it with a modern, sustainable approach.”
The bills would raise the personal income tax by 1.88% and the sales tax by 2%, giving the state a new pot of money to direct to schools. In exchange, property taxes would be eliminated.
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In its first year, the plan earmarks $300 million for Philadelphia schools, which have been unable to address hazardous buildings that lack teachers, textbooks, and reliable transportation.
School districts will no longer face reserve caps, giving more spending flexibility, while offering teachers higher raises than just cost-of-living adjustments. Reduced mortgage payments will keep housing more affordable, the lawmakers said, and landlords would be required to pass the savings on to their tenants for one year.
“This legislation is about fairness, sustainability and making Pennsylvania a place where families can thrive without the constant threat of being taxed out of their homes,” Fink said.
The lawmakers kicked off a series of town halls on Thursday in the Poconos Mountains in Luzerne County. Additional events are scheduled for Sept. 15 in Montoursville and Oct. 14 in Hazle Township.
“These town halls are about having a real conversation with the people this bill is designed to help,” Keefer said. “We’re bringing the plan to communities across Pennsylvania to listen, answer questions and work together to finally eliminate property taxes for good.”
Proposals to eliminate property taxes in Pennsylvania are common, with many filed every year. The Legislature has yet to find a path forward, however.
Pennsylvania’s public school system receives majority funding from local taxes, bolstered by state and federal support. Struggling districts often raise rates to cover cost increases.
Of note, though both parties have criticized the education system, spending has continued to grow.
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State support has gone from $8.6 billion in 2011 to $15.4 billion in 2024 as school district revenues have climbed from $25.2 billion to $36.7 billion. And since 2000, student enrollment has fallen by almost 140,000.
For local taxes, recent years have had growth of 2.4% to 3.3% – but they’re expected to grow by 4.8% and 4% in 2025 and 2026, according to an analysis from the Independent Fiscal Office.