According to a review of state between 2004 - 2009, Pennsylvania has the 16th highest property taxes in the nation. Property taxes are of critical importance to your school district, municipal and county governments; indeed, they are usually the main funding source. Opponents of property taxes have long argued that the taxes are inequitable as they do not tax someone based on what they spend or can afford, but on the property that they now own. Proposed legislation in Harrisburg would change that.
HB 1776, or the Property Tax Independence Act, would eliminate property taxes in Pennsylvania. To make up for that revenue, income tax in PA would rise from 3.07% to 4%, and the sales tax would increase from 6% to 7%. Sales tax loopholes would be closed on some food items and medications.
Supporters of the legislation say that money not spent on property tax could then be used to purchase items and thus create more businesses and jobs. Given that property taxes tend to be highest in urban areas, this could be a boon to urban redevelopment as well. Opponents of the legislation question whether or not it would still give governments enough funding to operate.
This legislation has NOT been endorsed or opposed by The Chamber, but if passed it would absolutely have a huge impact on taxpayers and businesses. What are your thoughts?