Support outlined for property tax reform
In my last letter to the editor, I explained what House and Senate Bill 76 was all about, so in this letter I will list all of the ways each property owner would benefit if this bill is passed.
You never really own your home as long as it can be taken from you for not paying your property taxes. You’re simply paying rent to the government under threat of eviction.
Many school districts are struggling with steep declines in property tax revenues as a result of assessment appeals by home and business owners. If this bill is passed it would create a stable, predictable, equitable stream of revenue for K-12 education.
Many homes that are in danger of being foreclosed could be saved with the elimination of the monthly property tax escrow that can amount to as much as 40 percent of a mortgage payment. Because of excessively high property taxes, homes in some areas of Pennsylvania have sharply declined in value and have become almost impossible to sell. Replacing the school property tax with other funding sources will restore value and make these homes more attractive to buyers.
Elimination of the monthly property tax escrow payment will make home ownership more affordable, increasing both new and existing home sales. Businesses are eager to establish a presence in states where the tax burden is low. Attracting business to Pennsylvania by replacing the property tax can be a huge stimulus for the state’s economy.
The second largest fixed cost for Pennsylvania business owners is the property tax. Many business owners have stated that the savings gained by no longer paying the property tax would enable them to expand their businesses and hire more employees. Homeowners pay about $8 billion annually in school property taxes. Returning that money to homeowners to spend as they please would create an organic, massive stimulus for Pennsylvania’s economy — one that would not subject the commonwealth to the borrowing and debt associated with typical government stimulus initiatives.
A home is a family’s largest investment. With increased home values and no property tax escrow to pay, homeowners will enjoy a significant boost in personal wealth and a much greater ability to invest in a brighter, more secure future for their families. Replacing the school property tax is the first step toward the replacement of all property taxes. With no property tax, assessments become a thing of the past. The average $10 million per county reassessment cost is eliminated, and government spending — and the taxes needed to support it — is reduced.
Folks, in closing, hopefully this has helped you understand why it is so important for you to call your local legislators and ask them to support House and Senate Bill 76.
Terry Ryan is a resident in the Albert Gallatin School District.