Aug 9, 2009 4 min read

While agonizing over the best way to fix the corrupt property tax system, we are ignoring the best solution: Abolish all property taxes on primary residences. That would eliminate three-fourths to four-fifths of all reassessments saving the counties tens of millions of dollars across the Commonwealth, stop the harassment of the homeowners; eliminate the disgusting practice of stealing peoples’ homes and equity for taxes they may not even owe, and selling peoples’ homes at sheriff sales. It would also boost the housing industry, create tens of thousands of jobs in the private sector, revitalize our communities because people could buy and upgrade homes without being penalized with increased assessments and taxes, and generate more revenue for schools, counties and municipalities than they are now receiving.

There is a belief that property taxes are the only stable source of funding for our schools, counties and municipalities. That is totally false.

The respected Legislative Budget and Finance Committee – the fiscal experts who offer unbiased analysis of financial matters for the governor and legislators of both parties, reviewed salesuse tax revenue and Pennsylvania State Income Tax revenue over a 20-year period.

This included both good and bad economic periods.

The LBFC experts’ conclusion: Substantial growth in salesuse and income tax revenue occurs every year during both good and bad economic times.

The LBFC also concluded the annual growth in revenue from these two taxes – is more than sufficient to provide consistent and stable funding for our schools, counties and municipalities when all property taxes on primary residences are abolished. Replacing property taxes on primary residences with a modest increase in sales and income taxes spreads the burden to everyone rather than keeping the burden primarily on homeowners.

STOP is a grassroots, all-volunteer group of citizens who have studied the property tax issue for more than seven years.

STOP (Primary Residence Protection Plan) supporters believe enactment of our sensible, workable plan will generate an economic boom that will mean even more revenue for our schools, counties, municipalities and the state from existing earned income taxes, sales taxes and commercial property taxes without raising any of those taxes beyond the initial raise of the sales and income taxes the year the property taxes are totally abolished on primary residences.

Further, the schools, counties and municipalities do not now collect 100 percent of the billed property tax revenue.

Revenue is lost due to discounting for paying tax early; some properties are “delinquent,” some properties are abandoned in most every community (350 newly abandoned properties every year in the city of Pittsburgh alone, and one in every ten in Philadelphia is abandoned); and a percentage of the billed tax revenue is paid to tax collectors or tax collection agencies as commissions.

The counties must maintain a very costly assessmentreassessment system that in Allegheny County alone costs taxpayers $7 million dollars a year.

Most of these costs borne by the schools, counties and municipalities for collection and enforcement of property taxes, would be eliminated under the STOP legislation.

Under the STOP legislation, school districts, counties and municipalities will receive 100 percent of the revenue they would have received from property taxes on primary residences during the year the law was enacted plus a cost of living escalator each year.

In addition they would continue to receive property taxes from commercial and industrial properties and all the other taxes currently received.

The LBFC study of the STOP legislation was commissioned in a 50-0 vote of the Pennsylvania Senate and was released in February 2006.

Copies are available by contacting Phil Durgin, LBFC executive director or his staff at (717) 783-1600 or by e-mail at info@lbfc.legis.state.pa.us

Learn more and get involved in promoting the total abolishment of all property taxes on primary residences by visiting the official STOP Website at www.grandoldusa.com

or by writing to Bob Logue, S.T.O.P. (Stop Taxing Our Properties), Box 306, Fairbank, PA 15435-0306. ucblogue@verizon.net

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Bob Logue is a resident of Fairbank.