07 January 2008
Dear Friends,
Happy New Year to all!
Since the legislature has not been in session for a few weeks there’s not much definitive information about the progress of HB 1275, the School Property Tax Elimination Act. However, there are some indications that we may soon see some action on property taxes in the House of Representatives.
HB 1275 now has 44 co-sponsors. The updated list is in the November 10 update here. If your representative is on this list you may want to thank him or her for sponsoring this legislation. If not, you should contact your representative to find out why they are not working for your interests. More on that later.
HB 1275 is now in the House Appropriations Committee; we expect the bill to be reported out of committee in the near future. We also expect floor debate on property taxes to begin sometime after January 14 since this issue should probably be settled prior to the governor’s February budget address. Of course, considering the legislature’s record on timeliness these projections are subject to change. But nonetheless this may or may not be our last opportunity to affect House passage of HB 1275 and we must act anyway to let the politicians know we are watching them.
First, letters to the editor of your local newspaper in support of the School Property Tax Elimination Act are always a good way to help to spread the word and apply pressure to politicians, so write one if you feel comfortable doing so. Second, frequent letters, phone calls, and e-mails to representatives are a MUST from as many of you as possible. Details are below.
Representative David Argall (Berks, Schuylkill), the Republican Caucus whip, is the only House leader who has signed on to HB 1275 and is actively promoting the bill. Republican leader Sam Smith (Armstrong, Indiana, Jefferson), Democratic leader William DeWeese (Fayette, Greene, Washington), and Democratic whip Keith McCall (Carbon) have not indicated that they will support HB 1275. This is unfortunate since the leadership of each party can have a huge influence over their members’ votes. Although the motives for their reluctance can only be assumed, these leaders need a stern admonition from each of us to let them know that we expect them to ignore the petty politics, be TRUE representatives of the people, and do what is right for the taxpayers of Pennsylvania. Their contact information is at the bottom of this update.
It is also VERY important that you contact your district’s representative during the next week to let him or her know that you expect them to support HB 1275 and that your vote and the votes of your friends in 2008 will be determined by their support of this legislation. To this point we’ve been respectful with these politicians in requesting their support but many have totally ignored our wishes. With their re-election coming up this year it is now time to play hardball. As Tony Phyrillas of the Pottstown Mercury recently said in his blog, “It's time to hold your representatives accountable. Make sure they hear from you and the message should be loud and clear: Eliminate property taxes now or voters will eliminate your job in 2008”. Well said, Tony! You can find contact information for your representative by Zip+4 here.
Remember, too, when you contact your representative that House Bill 1600 is still being considered. This bill is no different than the soundly defeated Act 1 tax shift referendum and will permanently raise both the sales and income taxes to finance a small property tax rebate (approximately $414) that will be quickly negated by relentlessly rising property taxes. This fraudulent, worthless legislation is nothing more than a tax increase in disguise and MUST BE DEFEATED! Be sure that your representative knows that you expect him or her to REJECT HB 1600. Further details about HB 1600 are available here.
One final note on HB 1275, the School Property Tax Elimination Act. It’s easy to tell the good guys from the self-serving members of the House of Representatives by their support for this bill. Unlike Act 1 - the property tax “relief” measure that benefits everyone EXCEPT the taxpayer by funding racing purses, jockey pensions, the Philadelphia Convention Center, and the Pittsburgh Penguins Arena - the School Property Tax Elimination Act is pure in that it benefits NO ONE but the people and schoolchildren of Pennsylvania. There is NOTHING in HB 1275 that favors the politicians or the special interests. HB 1275 is a remarkably honest piece of legislation and those legislators who support it are truly working for your interests.
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HB 1275 Objections Survey
Objections to HB 1275, the School Property Tax Elimination Act, have been raised by politicians and certain groups in Pennsylvania. The PTCC would like your opinion about these objections so we can show public attitude to counter them effectively. Please take a few moments to complete a short three question YES/NO survey about the issues. The survey is here. Here are the questions that are included in the survey:
1) The Tax Foundation (http://www.taxfoundation.org/) has ranked Pennsylvania #47 for business property tax burden in its annual rating of business-friendly states. The School Property Tax Elimination Act (HB 1275) proposes to reduce business school property taxes by 50%; it is estimated that this will generate as many as 100,000 new jobs each year by attracting new business to Pennsylvania. Some House Democrats will not support HB 1275, calling this reduction “corporate welfare”.
Question: If school property taxes on your home are COMPLETELY ELIMINATED, do you object to the reduction of school property taxes for business by 50%?
2) The School Property Tax Elimination Act (HB 1275) is financed in part by expanding the current sales tax base to include more services such as architect’s fees, health club memberships, and lawyer’s fees. It has been reported that some lawyers are objecting to a sales tax on their services and are lobbying for the defeat of HB 1275.
Question: If school property taxes on your home are COMPLETELY ELIMINATED, do you object to the broadening of the sales tax base to include attorney’s fees?
3) Under the provisions of the School Property Tax Elimination Act (HB 1275), non-profit organizations will continue to be exempt from paying sales taxes on goods and services that they purchase. However, any goods or services sold by the organizations to consumers will be subject to sales tax in the same manner as commercial stores.
Question: If school property taxes on your home are COMPLETELY ELIMINATED, do you object to paying sales tax on goods sold by non-profit organizations?
Besides the YES/NO questions in the survey, it would be appreciated if you would add your comments about these issues to this PTCC blog post (below) for all to read or e-mail them to pataxpayers@gmail.com. Any personal information that you choose to submit will remain confidential but survey results and anonymous quotes may be sent to politicians by the PTCC to show support for HB 1275.
Please help. Your participation in this survey will be greatly appreciated.
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In closing, I want to thank all of you for your continuing support of our efforts to achieve honest, equitable school finance reform. Please work to enlist the help of your family, friends, and neighbors in this campaign so we can have an even larger base of support for the benefit of all Pennsylvania taxpayers and schoolchildren. Please forward this e-mail to as many folks as possible! The more hands, the better!
Your questions and concerns are always welcome – please write to me at pataxpayers@gmail.com.
David Baldinger
PTCC Administrator
http://www.ptcc.us/
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Republican Caucus Leader:
Hon. Samuel H. Smith
527 East Mahoning Street
Punxsutawney, PA 15767
(814) 938-4225
Fax: (814) 938-1950
ssmith@pahousegop.com
Armstrong, Indiana, Jefferson
Democratic Caucus Leader:
Hon. H. William DeWeese
222 Elm Drive
Suite 101, P.O. Box 832
Waynesburg, PA 15370
(724) 627-8683
Fax: (724) 627-6043
wdeweese@pahouse.net
Fayette, Greene, Washington
Democratic Caucus Whip:
Hon. Keith R. McCall
162 West Ridge Street
Lansford, PA 18232
(570) 645-7585
Fax: (570) 645-9526
kmccall@pahouse.net
Carbon
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14 comments:
We the people pay all taxes, and any tax that business does not have to pay is a tax that we the people do not have to pay.
I guess the only way to get the attention of the legislature if they refuse to eliminate the unfair, inequitable, and outdated school property tax is to oust them with another "vote no" campaign. Everyone of them not supporting and voting for HB 1275, to relieve every homeowner in Pa.of this unfair burden is not representing the taxpayers regardless of what spin they use.
What the hell is wrong with these politicians anyway? Businesses don’t pay taxes, people pay taxes. Any tax on business is ultimately passed on to the consumer as higher prices and high business taxes keep new employers from doing business in Pennsylvania, ultimately harming our state’s economy. What’s so difficult to understand about that?
It’s time for these jokers to stop their silly politics and ignorant ideologies and get to work for the people they represent.
Reductions in business taxes can only be GOOD news for all Pennsylvanians. It should create more jobs and enable many businesses to reduce their prices. We desperately need businesses to come back here. I am the business manager at a small company, and it's safe to say that small businesses in this state take a disproportionate hit on state taxes.
It's hard to feel sorry for the lawyers and other services providers who object to sales tax on their services. Lawyers are, in every way, currently acting as "for-profit" businesses. So are architects, and health clubs. Why should they be exempt?
Non-profits selling good or services to consumers should not have a problem with charging sales tax on these goods.
The only problem I can see coming is a huge increase in the number of sales tax licenses that will need to be issued--the PA Dept of Revenue may have to start creating new jobs!
I'd like to point out something that nobody seems to have noticed.
Everybody seems to be worried about a paying a little more in sales tax.
I'M SURE I'M NOT ALONE IN MY SITUATION. IF I HAD TO PAY SALES TAX ON EVERY PENNY I MAKE, I WOULD STILL BE PAYING LESS THAN I NOW PAY IN SCHOOL TAX.
I pay close to $2400 in school tax. To equal that I'd have to pay sales tax on close to $40,000.
I don't care what I have to pay sales tax on, I come out ahead.
Even with the reassessment of properties located in Lancaster County and the resulting tax increase, Elizabethtown Area High School decided that they
underestimated the amount of tax revenue they would receive from the reassessment. Therefore, the following year they raised property taxes an additional 18%. Apparently that wasn't enough so this year they implemented another increase so that I am now paying almost 50% more than I did 3 years ago. I received a 2% salary increase 2 years ago and 3% last year. My family just can't get ahead with the rising cost of gas, groceries, health care and property taxes. Saving thousands of dollars in property tax would
go a long way in easing the financial burden on my family.
I am all for raising funds by taxing users of a product (sales tax, interstate tolls, gas tax etc). The only stipulation is that politicians must assure the public that taxes collected are, in fact, limited to support the use of the product being taxed (road improvements, maintenance)&/or the stated justification for the tax (elimination of school property tax for example).
Property Taxes are UNFAIR. There is no reason to displace someone from a home they have owned and paid for over many years to be displaced for one reason or another because of their inability to pay Property Taxes.
The fairest way, in my opinion, to assess taxes is on graduated consumption basis. If you buy it or use it you pay a tax. Basic food i.e. milk, eggs etc. would have no tax added. Taxes would be assessed based on the price of the item. For example, buying a used car would be assessed at one tax rate if the price was under, say $10,000. A new Cadillac costing $70,000 would be assessed a higher tax rate.
It really is a FAIR way. Those that cannot afford anything but the basics in life aren't unduly burdened.
BTW, Indiana will be voting on elinimation Property Taxes. Maybe our legislature would be wise to follow their actions.
When talking about property taxes, no one ever mentions how subjective they are. For instance, a local paper told the story of a politician whose home was conservatively estimated to be worth about 1 million dollars, yet on the tax rolls it was worth 100 thousand. Who knows how widespread this is? Probably everyone in the state but us poor taxpaying suckers. At least with a sales tax you can't cheat.
Just sent an email to my representative telling him to either start supporting HB1275 or plan on not having my vote this year. I also mentioned to him that I will be informing all my friends and neighbors that he does not support property tax elimination and to vote against him. It took all of 2 minutes to do. Every representative has a link on their homepage to contact them and most of them even have a checkbox to select stating your message is regarding property taxes. Have at it!
Aside from my total support of HB 1275 as a benefit to all who now pay school taxes, there is a further windfall available. Just think what the public will do with the extra money they save when HB 1275 is law. THEY WILL SPEND IT.! ! ! ! This will help the economy a great deal and also increase the amount of sales tax collected. Lets see, I need a new lawn tractor, carpet for the house, couch for the TV room and double pane window for the living
room. Can't the Naysayers see the benefit?
I think we should start planning our campaign to eliminate legislators that do not vote for or support HB 1275 this week.
Our new slogan could be
"eliminate school property tax or eliminate your representative status".
If you want to know how inequitable property taxes really are, look up homes in your area on assessment records. You will find none are accurate. Two homes of identical value will have different assessments.
Your neighbor may have a home identical to you but, be paying either more or less than you in property tax in the $100's or even $1000's.
The politicians know this, but ignore this. Merely reducing an unfair assessment is a sin.
Elimination is the answer.
It is now March, 2008, and I am in shock that we cannot move this bill. WHY?! What can these idiots be thinking? How do job losses, stagnant wages if any at all, foreclosures, decreased home value, home heating oil with the pricetag of gold, increased food prices, unaffordable health care...how does this translate to even thinking of collecting taxes from strained homeowners? Yet boldly they send out another round of increased tax bills! Where will the money come from? How can we continue this way? When they have finally wrung us dry, -then what? Can we please start over and clean house? EVERYONE with a connection to a self-interest or special interest, get out! HB1275 was the right way to go. I am not satisfied even if my rep. voted "yes". How much debate went on? They need to debate it like their lives depend on it, because ours does, - or clean out their desks and leave.
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