27 November 2009
Dear Friends,
I hope that you had a very happy Thanksgiving!
This Update begins with a disclaimer that I will use for all future discussions of today’s topic.
In the five years since the PTCC was established I have always carefully avoided any partisan bias and always attempt to call the situation as I see it regardless of the politics involved. I firmly believe that the property tax crisis has been caused by the inaction of Republicans and Democrats alike and that it will require committed lawmakers from both parties to permanently solve the problem. Please keep this in mind as you read today’s Update.
The PTCC today is announcing its endorsement of State Representative Sam Rohrer for Governor of Pennsylvania.
For many years Representative Rohrer has worked tirelessly for the total elimination of school property taxes and a restructuring of Pennsylvania’s broken education finance system. Along the way he has been thwarted by shameful partisan politics, callous special interests, and the appalling cowardice of many self-serving lawmakers who do not have the political will to support such sweeping legislation.
On Tuesday, November 17, Representative Rohrer announced his candidacy for Governor of Pennsylvania. During his announcement address Sam emphasized that school property tax elimination will be one of the five main planks of his campaign platform and a priority of his administration.
From the standpoint of school property tax elimination we could not have received better news. As Governor, Sam Rohrer will be in a position to advance the education finance reform agenda in a manner that to this point has been impossible. His election as Governor would hugely increase the likelihood of school property tax elimination in a way that we previously could have only imagined.
Of the three Republicans and five Democrats who have announced their candidacy for Governor, Representative Rohrer has been the ONLY one to make this commitment. Five candidates have not mentioned the issue in any manner whatsoever, while the remaining two have used the tired, meaningless, nonspecific terms “property tax reform” and “cut property taxes” in their campaign.
Through his ongoing efforts, Representative Rohrer has proven that he truly understands the property tax crisis for what it is: A moral issue that must be resolved to free Pennsylvania homeowners from oppressive property taxes and not a cynical political ploy to be used to win elections.
Because of the PTCC’s singular focus on education finance reform, the only factors I will consider for this election are an unequivocal public commitment to eliminate school property taxes and a definitive plan to do so - that will be my litmus test for any candidate for Governor in 2010. Representative Rohrer has passed that test.
I believe that the time has come to forget labels like Democrat and Republican, red and blue, conservative and liberal, left and right. Self-centered politicians of all stripes have demonstrated their unwillingness to be responsive to their constituents’ desires, preferring instead to take the easy road and do what is politically expedient. It is time to end this charade by electing those people who are attuned to and sympathetic to our needs, regardless of party, if we are to regain control of the government that is rightfully ours. I hope that you feel as I do on this issue.
Representative Rohrer’s candidacy has not been sanctioned by those political party power brokers who choose our candidates for us and who are concerned only about amassing power and winning and losing. For Sam to succeed it will take a bottom-up grassroots groundswell of support to accomplish the task of electing a Governor whose primary concern is the will of the people who elect him to office. With our efforts – the power of the people - we can demonstrate to the uncaring political bosses that we will no longer be content with candidates who are forced upon us by those who have little interest in our well-being. We will, instead, show them that we will elect those who will truly work for the people and not for the party establishment.
During the years of effort I have spent advocating for education funding reform and school property tax elimination I have come to know Representative Rohrer very well and I respect him greatly. I feel privileged to have had the opportunity to work with him on this vital issue and sincerely believe that he is an honorable and principled man of tremendous integrity who will do whatever he promises for the citizens of Pennsylvania.
I am asking you today to please strongly consider supporting Representative Rohrer’s candidacy, regardless of your political preference, to help achieve our goal of school property tax elimination. This is a non-partisan request based entirely on advancing the cause we support and is not based in any manner on political philosophy or affiliation. During all of the years that we have been working toward this goal we have never had a better opportunity to reach our objective. Your help is urgently needed if we are to succeed.
You can read more about Representative Rohrer’s goals on his campaign website at www.samrohrer.org.
In future PTCC Updates I’ll have specific suggestions on what you can do to support Representative Rohrer and the battle for school property tax elimination.
You can offer comments and discuss today’s update here on the PTCC blog or on the new PTCC Facebook page – simply search for “PTCC” when you’re logged on to Facebook and become a friend. We’d like to hear your thoughts.
Please forward this post to everyone you know to help spread the word and advance the cause.
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One more note for our friends in the Northeast: Representative Rohrer will be holding a town hall meeting on Thursday, December 10, at 6:30 PM at the Clarks Summit Volunteer Fire Department, 321 Bedford Street, Clarks Summit. Please be there to meet Sam, hear about his “Principles to Renew Pennsylvania”, and show your support! There will be more of these meetings in the future throughout the state and the PTCC will keep you up-to-date on locations and times.
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That’s it for today. My best wishes and my gratitude go out to all PTCC supporters and subscribers. Thank you very much for all of your help.
David Baldinger
PTCC Administrator
www.ptcc.us
Update - The SPTEA is introduced!
07 November 2009
Dear Friends,
It’s been quite a while since our last PTCC Update since not much had been happening. But suddenly, when it rains, it pours!
The SPTEA is introduced!
On October 29 Representative Sam Rohrer, along with thirty-one bipartisan co-sponsors, formally introduced the School Property Tax Elimination Act in the House of Representatives as House Bill (HB) 1275.
HB 1275 has been referred to the House Finance Committee for consideration. Its fate is now in the hands of the House Democrats who, as the majority party, control the flow of legislation. They have an abominable record for supporting school property tax elimination measures so we'll have to do whatever is possible to get the bill out of committee and onto the floor for a vote. I’ll have details on how you can help in a future PTCC Update.
The list of HB 1275 co-sponsors is available on the PTCC website here. Please consider sending an e-mail to thank those Representatives who co-sponsored. You might also want to send a letter or e-mail or make a phone call to your Representative if he or she is not on the list to strongly urge him or her to add their name as a co-sponsor of the SPTEA. It’s never too late for them to do this. And, please, don’t accept any their useless excuses – there are none!
You can find your Representative’s contact information through the “Find Your Legislators” link on the PTCC homepage.
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Act 1 Index
What’s your potential school property tax increase for 2010? The Pennsylvania Department of Education has released the 2010-2011 Act 1 index that shows the maximum allowable tax increase before exception or referendum.
For the 2010-2011 school year the average increase in the Act 1 index for all Pennsylvania school districts is 3.8%; the largest increase is 4.7% with the smallest at 2.9%. This increase is interesting because during the one year period September 2008 to September 2009 the Consumer Price Index (CPI), an inflation measure, was a deflationary -1.3% (U.S. Department of Labor, October 2009).
More information about the index and a complete listing for all Pennsylvania school districts are available on the PTCC website here. The index is available as a downloadable PDF (Acrobat) file.
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Gambling expansion to include table games
Speaking of Act 1, the terrific property tax “relief” we’ve been receiving from the legalized gaming in Pennsylvania supported by Act 1 may be even less with the expansion to table games that was included as part of the 2009-2010 state budget package.
At this point the increased revenues from the table games legislation does not include any distribution for property tax relief – all taxes collected from this new law will be used for general fund expenditures.
But to make matters worse, it is predicted that table games will attract some slots players, reducing the revenue from slot machines that is dedicated to property tax relief. In addition, it is also predicted that some casinos will reduce the number of slot machines available to clear floor space for table games, further reducing the revenue from slots. If you think the current property tax relief from gambling is paltry now, wait until the table games start siphoning money from the relief fund!
This is just one more reason why the bogus Act 1 property tax relief from gambling needs to be repealed and property tax elimination enacted through the School Property Tax Elimination Act.
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The Autumn 2009 SPTEA Promo Pack
Mike Fogarty of the PCTA’s Coatesville group has compiled a downloadable package of promotional goodies to help you spread the word about the SPTEA. The package includes posters, letters, and information about the looming 2012 public employees’ pension spike that will strongly affect your property taxes.
The Promo Pack is available on the PTCC website here.
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New PCTA Member Groups!
Since the last PTCC Update the Pennsylvania Coalition of Taxpayer Associations (PCTA) has added two dynamic new groups to our growing alliance for a total of thirty-four dedicated taxpayer advocacy organizations!
In August, PA Tax Talk from Montgomery County joined the PCTA’s effort for the enactment of the School Property Tax Elimination Act. PA Tax Talk is eager to welcome new Southeast PA members; contact Ernie Rosato at support@pataxtalk.com to help the cause.
In September, the PCTA added the Concerned Citizens of Bethlehem Area School District from Northampton County to the roster. The CC-BASD is a very active organization with regularly scheduled meetings and would certainly welcome your participation as a member. Contact Patty Felix at cclvpa@gmail.com to join their efforts.
The PCTA heartily welcomes PA Tax Talk and CC-BASD to the PCTA! We’re pleased to have you on board to keep the momentum building.
If you’re fed up with unfair taxation and unresponsive politicians and would like to form your own taxpayer advocacy group, contact any PCTA member group for advice and assistance. The PCTA members are listed on the PTCC website here. It’s easy to do and we’ll give you all the help you need.
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PCTA-SPTEA regional taxpayer meetings a success!
The PCTA-sponsored October meetings in Wilkes-Barre and Duncannon to explain and promote the School Property Tax Elimination Act were a huge success, with hundreds of attendees eager to lean the details of the SPTEA. The PCTA gained many new supporters who are very enthusiastic about working for the enactment of the SPTEA and we are pleased to welcome them to the cause.
We are grateful for the hard work of arranging and staging these meetings that was done by PCTA member groups: Citizens Against Property Taxes (Luzerne County), Scranton and Lackawanna County Taxpayers’ and Citizens’ Association, Wyoming County Concerned Taxpayers, The Patriot’s Voice (Columbia County), and Citizens for the Elimination of Property Taxes (Perry County). Our thanks, too, to Sue Henry of WILK Radio for being a true believer in our efforts and for hosting the Northeast meeting.
The PCTA will be sponsoring more of these meetings in the future, so please keep watch for a PTCC Update announcing a meeting in your area.
The PTCC and PCTA are proud to have all of you as Update subscribers and supporters of the SPTEA. We can’t get this job done without you and we are pleased to have you by our side in our fight for true education finance reform. Thank you!
That’s all for now. Please write if you have questions or concerns.
David Baldinger
PTCC Administrator
pataxpayers@gmail.com
Dear Friends,
It’s been quite a while since our last PTCC Update since not much had been happening. But suddenly, when it rains, it pours!
The SPTEA is introduced!
On October 29 Representative Sam Rohrer, along with thirty-one bipartisan co-sponsors, formally introduced the School Property Tax Elimination Act in the House of Representatives as House Bill (HB) 1275.
HB 1275 has been referred to the House Finance Committee for consideration. Its fate is now in the hands of the House Democrats who, as the majority party, control the flow of legislation. They have an abominable record for supporting school property tax elimination measures so we'll have to do whatever is possible to get the bill out of committee and onto the floor for a vote. I’ll have details on how you can help in a future PTCC Update.
The list of HB 1275 co-sponsors is available on the PTCC website here. Please consider sending an e-mail to thank those Representatives who co-sponsored. You might also want to send a letter or e-mail or make a phone call to your Representative if he or she is not on the list to strongly urge him or her to add their name as a co-sponsor of the SPTEA. It’s never too late for them to do this. And, please, don’t accept any their useless excuses – there are none!
You can find your Representative’s contact information through the “Find Your Legislators” link on the PTCC homepage.
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Act 1 Index
What’s your potential school property tax increase for 2010? The Pennsylvania Department of Education has released the 2010-2011 Act 1 index that shows the maximum allowable tax increase before exception or referendum.
For the 2010-2011 school year the average increase in the Act 1 index for all Pennsylvania school districts is 3.8%; the largest increase is 4.7% with the smallest at 2.9%. This increase is interesting because during the one year period September 2008 to September 2009 the Consumer Price Index (CPI), an inflation measure, was a deflationary -1.3% (U.S. Department of Labor, October 2009).
More information about the index and a complete listing for all Pennsylvania school districts are available on the PTCC website here. The index is available as a downloadable PDF (Acrobat) file.
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Gambling expansion to include table games
Speaking of Act 1, the terrific property tax “relief” we’ve been receiving from the legalized gaming in Pennsylvania supported by Act 1 may be even less with the expansion to table games that was included as part of the 2009-2010 state budget package.
At this point the increased revenues from the table games legislation does not include any distribution for property tax relief – all taxes collected from this new law will be used for general fund expenditures.
But to make matters worse, it is predicted that table games will attract some slots players, reducing the revenue from slot machines that is dedicated to property tax relief. In addition, it is also predicted that some casinos will reduce the number of slot machines available to clear floor space for table games, further reducing the revenue from slots. If you think the current property tax relief from gambling is paltry now, wait until the table games start siphoning money from the relief fund!
This is just one more reason why the bogus Act 1 property tax relief from gambling needs to be repealed and property tax elimination enacted through the School Property Tax Elimination Act.
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The Autumn 2009 SPTEA Promo Pack
Mike Fogarty of the PCTA’s Coatesville group has compiled a downloadable package of promotional goodies to help you spread the word about the SPTEA. The package includes posters, letters, and information about the looming 2012 public employees’ pension spike that will strongly affect your property taxes.
The Promo Pack is available on the PTCC website here.
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New PCTA Member Groups!
Since the last PTCC Update the Pennsylvania Coalition of Taxpayer Associations (PCTA) has added two dynamic new groups to our growing alliance for a total of thirty-four dedicated taxpayer advocacy organizations!
In August, PA Tax Talk from Montgomery County joined the PCTA’s effort for the enactment of the School Property Tax Elimination Act. PA Tax Talk is eager to welcome new Southeast PA members; contact Ernie Rosato at support@pataxtalk.com to help the cause.
In September, the PCTA added the Concerned Citizens of Bethlehem Area School District from Northampton County to the roster. The CC-BASD is a very active organization with regularly scheduled meetings and would certainly welcome your participation as a member. Contact Patty Felix at cclvpa@gmail.com to join their efforts.
The PCTA heartily welcomes PA Tax Talk and CC-BASD to the PCTA! We’re pleased to have you on board to keep the momentum building.
If you’re fed up with unfair taxation and unresponsive politicians and would like to form your own taxpayer advocacy group, contact any PCTA member group for advice and assistance. The PCTA members are listed on the PTCC website here. It’s easy to do and we’ll give you all the help you need.
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PCTA-SPTEA regional taxpayer meetings a success!
The PCTA-sponsored October meetings in Wilkes-Barre and Duncannon to explain and promote the School Property Tax Elimination Act were a huge success, with hundreds of attendees eager to lean the details of the SPTEA. The PCTA gained many new supporters who are very enthusiastic about working for the enactment of the SPTEA and we are pleased to welcome them to the cause.
We are grateful for the hard work of arranging and staging these meetings that was done by PCTA member groups: Citizens Against Property Taxes (Luzerne County), Scranton and Lackawanna County Taxpayers’ and Citizens’ Association, Wyoming County Concerned Taxpayers, The Patriot’s Voice (Columbia County), and Citizens for the Elimination of Property Taxes (Perry County). Our thanks, too, to Sue Henry of WILK Radio for being a true believer in our efforts and for hosting the Northeast meeting.
The PCTA will be sponsoring more of these meetings in the future, so please keep watch for a PTCC Update announcing a meeting in your area.
The PTCC and PCTA are proud to have all of you as Update subscribers and supporters of the SPTEA. We can’t get this job done without you and we are pleased to have you by our side in our fight for true education finance reform. Thank you!
That’s all for now. Please write if you have questions or concerns.
David Baldinger
PTCC Administrator
pataxpayers@gmail.com
South-Central PA Regional Taxpayer Event
26 September 2009
Dear Friends,
The school property tax elimination event that was sponsored by the northeast region groups of the Pennsylvania Coalition of Taxpayer Associations on Thursday, September 24, was a great success, with many attendees and terrific newspaper and radio coverage. One newspaper account of the meeting is here.
Now for our next event…
The School Property Tax Elimination Act (SPTEA) will be the topic of a public meeting that is being sponsored by our Perry County taxpayer group, Citizens for the Elimination of Property Taxes, a member the statewide grassroots PCTA.
The event will be held on Thursday, October 1 at 7:00 PM in the Duncannon EMS Banquet Hall, 16 Shermanta Drive, Duncannon, PA. An introduction will be given by Perry County’s Citizens for the Elimination of Property Taxes, details of the School Property Tax Elimination Act will be presented by the plan’s prime sponsor, State Representative Sam Rohrer, and I’ll be there to talk about the politics of the plan and how taxpayers can help to make the SPTEA a reality. There will be a question and answer session following the presentation.
Taxpayers from throughout the south-central area of Pennsylvania are strongly encouraged to attend this regional meeting to learn about how the SPTEA can relieve their property tax burden, the politics of the plan’s enactment, and ways they can help to make this legislation a reality. Of course, you’re welcome to attend no matter where you live if you’re willing to make the drive!
Please plan to attend this event and bring others with you. And please forward this e-mail to anyone you know who is concerned about the property tax situation in Pennsylvania.
We hope to see you there!
David Baldinger
PTCC Administrator
www.ptcc.us
pataxpayers@gmail.com
Dear Friends,
The school property tax elimination event that was sponsored by the northeast region groups of the Pennsylvania Coalition of Taxpayer Associations on Thursday, September 24, was a great success, with many attendees and terrific newspaper and radio coverage. One newspaper account of the meeting is here.
Now for our next event…
The School Property Tax Elimination Act (SPTEA) will be the topic of a public meeting that is being sponsored by our Perry County taxpayer group, Citizens for the Elimination of Property Taxes, a member the statewide grassroots PCTA.
The event will be held on Thursday, October 1 at 7:00 PM in the Duncannon EMS Banquet Hall, 16 Shermanta Drive, Duncannon, PA. An introduction will be given by Perry County’s Citizens for the Elimination of Property Taxes, details of the School Property Tax Elimination Act will be presented by the plan’s prime sponsor, State Representative Sam Rohrer, and I’ll be there to talk about the politics of the plan and how taxpayers can help to make the SPTEA a reality. There will be a question and answer session following the presentation.
Taxpayers from throughout the south-central area of Pennsylvania are strongly encouraged to attend this regional meeting to learn about how the SPTEA can relieve their property tax burden, the politics of the plan’s enactment, and ways they can help to make this legislation a reality. Of course, you’re welcome to attend no matter where you live if you’re willing to make the drive!
Please plan to attend this event and bring others with you. And please forward this e-mail to anyone you know who is concerned about the property tax situation in Pennsylvania.
We hope to see you there!
David Baldinger
PTCC Administrator
www.ptcc.us
pataxpayers@gmail.com
Northeast Regional Taxpayer Event
15 September 2009
Dear Friends,
This is just a short note today to remind you about the Pennsylvania Coalition of Taxpayer Associations (PCTA) Northeast Pennsylvania regional property tax elimination event.
The School Property Tax Elimination Act will be the topic of this public meeting that is sponsored by the five Northeast Pennsylvania taxpayer advocacy groups that are members of the statewide grassroots PCTA.
The event will be held on Thursday, September 24 at 7:00 PM in the Wyoming Valley West High School, Route 11, Plymouth, PA, just a few miles from I-81. Introductions will be given by a member of each participating group, I’ll be there to present details of the School Property Tax Elimination Act, and there will be a question and answer session following the presentation. The meeting will be emceed by Sue Henry of WILK Radio.
Taxpayers from throughout the eleven Northeast counties are strongly encouraged to attend this regional meeting to learn about how the SPTEA can relieve their property tax burden, the politics of the plan’s enactment, and ways they can help to make this legislation a reality. Of course, you’re welcome to attend no matter where you live if you’re willing to make the drive!
Participating taxpayer groups include CAPTaxes of Luzerne County, Scranton and Lackawanna County Taxpayers’ and Citizens’ Association, Wyoming County Concerned Taxpayers, The Patriot’s Voice of Columbia County, and Bradford County Concerned Citizens.
Please plan to attend this event and bring others with you. And please forward this e-mail to anyone you know who is concerned about the property tax situation in Pennsylvania.
We hope to see you there!
David Baldinger
PTCC Administrator
www.ptcc.us
Dear Friends,
This is just a short note today to remind you about the Pennsylvania Coalition of Taxpayer Associations (PCTA) Northeast Pennsylvania regional property tax elimination event.
The School Property Tax Elimination Act will be the topic of this public meeting that is sponsored by the five Northeast Pennsylvania taxpayer advocacy groups that are members of the statewide grassroots PCTA.
The event will be held on Thursday, September 24 at 7:00 PM in the Wyoming Valley West High School, Route 11, Plymouth, PA, just a few miles from I-81. Introductions will be given by a member of each participating group, I’ll be there to present details of the School Property Tax Elimination Act, and there will be a question and answer session following the presentation. The meeting will be emceed by Sue Henry of WILK Radio.
Taxpayers from throughout the eleven Northeast counties are strongly encouraged to attend this regional meeting to learn about how the SPTEA can relieve their property tax burden, the politics of the plan’s enactment, and ways they can help to make this legislation a reality. Of course, you’re welcome to attend no matter where you live if you’re willing to make the drive!
Participating taxpayer groups include CAPTaxes of Luzerne County, Scranton and Lackawanna County Taxpayers’ and Citizens’ Association, Wyoming County Concerned Taxpayers, The Patriot’s Voice of Columbia County, and Bradford County Concerned Citizens.
Please plan to attend this event and bring others with you. And please forward this e-mail to anyone you know who is concerned about the property tax situation in Pennsylvania.
We hope to see you there!
David Baldinger
PTCC Administrator
www.ptcc.us
** ACTION ITEM ** The SPTEA is in jeopardy!
URGENT ACTION ITEM
25 August 2009
Dear Friends,
This is an urgent Action Item that needs your immediate attention. Please read this Update and forward it to as many folks as possible.
First, let me begin with a disclaimer as a preface to today’s Update. This Update is not about the current Pennsylvania budget battle, an issue on which the PTCC and PCTA have not taken a position. Further, it is not meant to attack any political party but, rather, to point out the facts as they exist.
On Monday, August 24, House Minority Leader Representative Sam Smith issued a statement about the budget fight. I have excerpted the portions of the statement that are relative to school property tax elimination:
HARRISBURG – The following is a statement from House Republican Leader Sam Smith (R-Jefferson County) regarding the Sales and Use Tax expansion proposal being offered by the governor as a means to fund his bloated state spending proposal ...
... “Last week, Democrats were looking to tax legal services and limit access to the courts”.
“Now, we learn ‘everything is on the table,’ and they have a list of items, including many other ‘services’ they are looking to tax for more revenues – including each and every ATM transaction”.
“Newspapers and magazines; movie, sports and theater tickets; museums, historic sites and the zoo will all have the state Sales and Use Tax added to their costs just to increase state spending. Research and development, advertising, and administrative services will be taxed under the governor’s plan. In order to pay for big government services, Democrats are even looking to tax Unemployment Compensation Claims, mass transit, textbooks, flags and dry cleaning"...
From the Harrisburg Patriot-News, August 24, 2009:
… Republican negotiators have also rejected an increase in the sales tax, but left the door open for raising money by applying the sales tax to more types of items.
Rendell said Monday he was mystified by some of the existing exemptions, such as on sales of gold bullion and certain cable television charges.
"A lot of the exceptions make no sense and are solely the product of effective lobbying by special interests," he said, adding that food and clothing should remain exempt …
The proposal to expand the base of the sales tax poses a direct and immediate threat to the future of the School Property Tax Elimination Act (SPTEA). Since the SPTEA’s primary funding source is the expansion of the sales tax base, expanding the base for use in the general fund would wipe out the SPTEA’s funding and effectively kill the SPTEA forever. If we are to continue to work for school property tax elimination it is urgent that this proposal is stopped NOW!
** ACTION ITEM **
Since the Senate Republican negotiators are basically controlling the budget deliberations at this point, they are the lawmakers who have the best probability of stopping the proposed sales tax expansion. Therefore, it is imperative that you contact them as soon as possible to demand that an expansion of the sales tax base be removed from the table for this purpose. Please note the phrase “for this purpose”. If you give them the idea that you object to an expansion of the sales tax base for any reason it could come back to haunt us later during SPTEA debate.
Please voice your displeasure to the Senate leaders listed below as well as to your own Senator and Representative. Your lawmakers’ contact information can be found here by ZIP+4 .
Senate President Pro Tempore:
Senator Joseph Scarnati
Senate Box 203025
Harrisburg, PA 17120-3025
(717) 787-7084
jscarnati@pasen.gov
Senate Majority Leader:
Senator Dominic Pileggi
Senate Box 203009
Harrisburg, PA 17120-3009
(717) 787-4712
dpileggi@pasen.gov
Senate Appropriations Committee Chairman:
Senator Jake Corman
Senate Box 203034
Harrisburg, PA 17120-3034
(717) 787-1377
jcorman@pasen.gov
I cannot overemphasize the urgency of this Action Item. If the plan to expand the sales tax base for general fund purposes succeeds, we will have seen the demise of the School Property Tax Elimination Act. Please act on this today and forward this e-mail to as many folks as possible!
Thank you in advance for all of your help and support.
David Baldinger
PTCC Administrator
www.ptcc.us
P.S. For those of you who want to see the hypocrisy that has been demonstrated on this issue, please read the quotes below. Almost all are comments from the debate on the SPTEA in January 2008 that I have extracted from the House Legislative Journal and most are by the Democrats who now support the expansion of the sales tax base. They fought against the sales tax expansion for the elimination of property taxes - which would have benefited everyone - but now they seem to think it's the perfect solution to pay for their general fund budget.
This is rather lengthy and adds nothing to the Update above, so if you haven’t the time or inclination it is not necessary for you to read it. It is FYI only.
Current quote from Rep. David Levdansky, House Finance Committee Chair, as published in the August 16, 2009 edition of the Scranton Times:
"Rep. David Levdansky, D-39, Elizabeth, chairman of the House Finance Committee, said a sales tax expansion could generate several hundred million dollars of new tax revenues annually. He wants to make the implementation of the sales tax fairer by ending some exemptions."
House Legislative Journal January 28, 2008:
Page 186:
Mr. LEVDANSKY. Thank you, Mr. Speaker.
... I think Representative Rohrer has it all backwards. If you want to broaden the sales tax to include all these services, then do that, but the reality is, the way it would be applied is extraordinarily unfair, and I am not saying that I am for expansion of the sales tax. I am not, but if one thinks that that is the right thing to do, this is the wrong way and the unfair way to do it ...
... For example, when you go to the MAC (money access center) machine and you take out a couple hundred dollars cash. You know, I could remember $200, you know, because if I do not carry my checkbook with me and I take money out of the MAC machine, I could remember taking $200 out, and I know the service charge is $2. So I could remember to take $200 — tomorrow when I am pulling out my checkbook at the grocery store, I remember to take out $202, but under this amendment, sales tax is going to be applied to that service charge. So now I have got to remember, you know, how much I took out and not just that but what the service charge is and now I have to apply the sales tax to the service, to the service charge at the ATM machine (automated teller machine) ...
Continued Page 187:
... When you are trying to subject goods and services that have never been subject to the sales tax, when you are trying for the first time to apply the sales tax on that, you are not exactly certain as to how much revenue that is going to generate because these things have never been taxed before ...
... Mr. Speaker, the other thing we have not looked at is what impact this amendment would have on the State's economy. Taxing things that have never been subject to the tax, raising the State personal income tax by 25 percent – those things are going to have a dramatic consequence in terms of our State's economy, and it is unpredictable at this point. It is a shot in the dark.
Page 193:
The SPEAKER. Representative Longietti.
The difference between this amendment and many of the other proposals is that this amendment would broaden or tax services that we have not traditionally taxed in Pennsylvania. We would tax things for the first time. And one of the problems that I have with this amendment is that it drives up the cost of doing business. It makes Pennsylvania uncompetitive. And it is particularly harsh on small businesses, because now businesses that have not collected sales tax for the first time would have to hire staff, collect the tax, account for the tax, remit the tax on a quarterly basis, and be audited on the tax ...
Continued Page 194:
... So when you look at this amendment, it taxes far too many things and it drives up the cost of business, particularly small business. It makes us uncompetitive. It is not helpful to economic development. In fact, it is harmful to economic development in that regard and could lead to job cuts. So inasmuch as I am in favor of property tax relief, this measure is the wrong approach for all those reasons, and for those reasons I respectfully ask my colleagues to join me in voting against this amendment.
House Legislative Journal Jan 29, 2008:
Page 217:
Mr. STAIRS. Thank you, Mr. Speaker.
If I may, I would like to be brief in this long discussion. In my many years as a legislator, I have heard the negatives on the property tax and have not really seen too many people that like the property tax. It seems it is despised by all. So that means it is about time we do something. But certainly the legislation in front of us right now, this amendment, I think is the wrong way to go. When people find out what their taxes are going to be, if this was ever implemented, there would probably be a revolution in this Commonwealth.
Page 220:
Mr. GEORGE. Thank you, Mr. Speaker.
Mr. Speaker, I certainly will not be long.
This is the second day we are working with an amendment, and I do not begrudge the time in that we both, both Republicans and Democrats, have been for a dozen years when they each had the majority, had promised some relief on property tax. But whether the pain is in the arm or in the leg, removing it from one part of the body to another does not remove the pain, and the sales tax is the most regressive tax that any working family has to put up with. You know, if an individual lost his job, he still has to pay that homeowner's tax, but he still has to use what little he has to pay sales tax ...
… And adhering to what we have promised, that Pennsylvania now will adopt a plan to help those people in despair, to help those small businesses, to help these individuals who find this aggressive tax more aggressive than ever, but nevertheless, the sales tax is just as aggressive as this is, and I ask that we defeat this amendment.
Page 226:
The SPEAKER. Representative Daley.
Mr. DALEY. Thank you, Mr. Speaker.
... The financial institutions would also face an additional financial burden to change and manage the processes to capture and pay sales and use taxes on this expanded base. Fourthly, the Pennsylvania banks and out-of-State banks, as something that should concern all of us, would be viewed as equals with regard to services performed out of State for Pennsylvania customers, but compliance by out-of-State banks with the use tax in Pennsylvania would be absolutely difficult to enforce and would result, likely, to be unfair to our own banks. That competitive disadvantage for Pennsylvania banks would cause them to move more of their operations out of the State of Pennsylvania. The result could reduce tax revenues, not increase them, and this is according to the financial institutions in Pennsylvania. Services that many community banks purchase from third-party vendors could be deemed to be financial services and subject to taxation. Larger financial institutions offer back-office and other services that could be subject to the 6-percent sales tax.
Page 228:
The SPEAKER. The Chair recognizes the majority leader,
Representative DeWeese.
Mr. DeWEESE. Thank you very much, Mr. Speaker.
I will keep my remarks exceedingly brief. I just want to make two quick points. I think many times our debates are enhanced when we go back home in our commentary. The two major reasons I will be counterpoised against my good friend from Berks today come from Harry Readshaw's debate yesterday and from debate from Ms. Harper earlier today. Number one, my Republican colleagues for many years have been against the inheritance tax. They have called it the death tax. I think the Rohrer amendment could conceivably be a death-tax amendment. I think that if you go back to Greene County and talk to Chuck Behm at the Behm Funeral Home or over at the Milliken funeral facility or go down to talk to John Maykuth over in Masontown, and tell them that not only are their services going to be taxed but their vaults are going to be taxed, their caskets are going to be taxed, and if there is a probate dynamic at the end of that unhappy moment, the lawyer fees will be taxed. I just cannot think that amongst the tens and tens and tens of very good reasons that people have come to the microphone today to counter the honorable gentleman from Berks, preeminent in my thought process is I want to look at this as an additional death tax or a series of death taxes.
Page 230:
The Chair recognizes Representative Levdansky.
Mr. LEVDANSKY. Thank you, Mr. Speaker.
... Also, as I pointed out, the devil really is in the details. It really is in the details. This plan, this plan will tax practically everything from day care to death, and almost everything that happens in your life in between will be subject to the sales tax. I think there is just too much uncertainty and unpredictability about what that will mean for Pennsylvania's economy and what that means for funding public education in the Commonwealth.
25 August 2009
Dear Friends,
This is an urgent Action Item that needs your immediate attention. Please read this Update and forward it to as many folks as possible.
First, let me begin with a disclaimer as a preface to today’s Update. This Update is not about the current Pennsylvania budget battle, an issue on which the PTCC and PCTA have not taken a position. Further, it is not meant to attack any political party but, rather, to point out the facts as they exist.
On Monday, August 24, House Minority Leader Representative Sam Smith issued a statement about the budget fight. I have excerpted the portions of the statement that are relative to school property tax elimination:
HARRISBURG – The following is a statement from House Republican Leader Sam Smith (R-Jefferson County) regarding the Sales and Use Tax expansion proposal being offered by the governor as a means to fund his bloated state spending proposal ...
... “Last week, Democrats were looking to tax legal services and limit access to the courts”.
“Now, we learn ‘everything is on the table,’ and they have a list of items, including many other ‘services’ they are looking to tax for more revenues – including each and every ATM transaction”.
“Newspapers and magazines; movie, sports and theater tickets; museums, historic sites and the zoo will all have the state Sales and Use Tax added to their costs just to increase state spending. Research and development, advertising, and administrative services will be taxed under the governor’s plan. In order to pay for big government services, Democrats are even looking to tax Unemployment Compensation Claims, mass transit, textbooks, flags and dry cleaning"...
From the Harrisburg Patriot-News, August 24, 2009:
… Republican negotiators have also rejected an increase in the sales tax, but left the door open for raising money by applying the sales tax to more types of items.
Rendell said Monday he was mystified by some of the existing exemptions, such as on sales of gold bullion and certain cable television charges.
"A lot of the exceptions make no sense and are solely the product of effective lobbying by special interests," he said, adding that food and clothing should remain exempt …
The proposal to expand the base of the sales tax poses a direct and immediate threat to the future of the School Property Tax Elimination Act (SPTEA). Since the SPTEA’s primary funding source is the expansion of the sales tax base, expanding the base for use in the general fund would wipe out the SPTEA’s funding and effectively kill the SPTEA forever. If we are to continue to work for school property tax elimination it is urgent that this proposal is stopped NOW!
** ACTION ITEM **
Since the Senate Republican negotiators are basically controlling the budget deliberations at this point, they are the lawmakers who have the best probability of stopping the proposed sales tax expansion. Therefore, it is imperative that you contact them as soon as possible to demand that an expansion of the sales tax base be removed from the table for this purpose. Please note the phrase “for this purpose”. If you give them the idea that you object to an expansion of the sales tax base for any reason it could come back to haunt us later during SPTEA debate.
Please voice your displeasure to the Senate leaders listed below as well as to your own Senator and Representative. Your lawmakers’ contact information can be found here by ZIP+4 .
Senate President Pro Tempore:
Senator Joseph Scarnati
Senate Box 203025
Harrisburg, PA 17120-3025
(717) 787-7084
jscarnati@pasen.gov
Senate Majority Leader:
Senator Dominic Pileggi
Senate Box 203009
Harrisburg, PA 17120-3009
(717) 787-4712
dpileggi@pasen.gov
Senate Appropriations Committee Chairman:
Senator Jake Corman
Senate Box 203034
Harrisburg, PA 17120-3034
(717) 787-1377
jcorman@pasen.gov
I cannot overemphasize the urgency of this Action Item. If the plan to expand the sales tax base for general fund purposes succeeds, we will have seen the demise of the School Property Tax Elimination Act. Please act on this today and forward this e-mail to as many folks as possible!
Thank you in advance for all of your help and support.
David Baldinger
PTCC Administrator
www.ptcc.us
P.S. For those of you who want to see the hypocrisy that has been demonstrated on this issue, please read the quotes below. Almost all are comments from the debate on the SPTEA in January 2008 that I have extracted from the House Legislative Journal and most are by the Democrats who now support the expansion of the sales tax base. They fought against the sales tax expansion for the elimination of property taxes - which would have benefited everyone - but now they seem to think it's the perfect solution to pay for their general fund budget.
This is rather lengthy and adds nothing to the Update above, so if you haven’t the time or inclination it is not necessary for you to read it. It is FYI only.
Current quote from Rep. David Levdansky, House Finance Committee Chair, as published in the August 16, 2009 edition of the Scranton Times:
"Rep. David Levdansky, D-39, Elizabeth, chairman of the House Finance Committee, said a sales tax expansion could generate several hundred million dollars of new tax revenues annually. He wants to make the implementation of the sales tax fairer by ending some exemptions."
House Legislative Journal January 28, 2008:
Page 186:
Mr. LEVDANSKY. Thank you, Mr. Speaker.
... I think Representative Rohrer has it all backwards. If you want to broaden the sales tax to include all these services, then do that, but the reality is, the way it would be applied is extraordinarily unfair, and I am not saying that I am for expansion of the sales tax. I am not, but if one thinks that that is the right thing to do, this is the wrong way and the unfair way to do it ...
... For example, when you go to the MAC (money access center) machine and you take out a couple hundred dollars cash. You know, I could remember $200, you know, because if I do not carry my checkbook with me and I take money out of the MAC machine, I could remember taking $200 out, and I know the service charge is $2. So I could remember to take $200 — tomorrow when I am pulling out my checkbook at the grocery store, I remember to take out $202, but under this amendment, sales tax is going to be applied to that service charge. So now I have got to remember, you know, how much I took out and not just that but what the service charge is and now I have to apply the sales tax to the service, to the service charge at the ATM machine (automated teller machine) ...
Continued Page 187:
... When you are trying to subject goods and services that have never been subject to the sales tax, when you are trying for the first time to apply the sales tax on that, you are not exactly certain as to how much revenue that is going to generate because these things have never been taxed before ...
... Mr. Speaker, the other thing we have not looked at is what impact this amendment would have on the State's economy. Taxing things that have never been subject to the tax, raising the State personal income tax by 25 percent – those things are going to have a dramatic consequence in terms of our State's economy, and it is unpredictable at this point. It is a shot in the dark.
Page 193:
The SPEAKER. Representative Longietti.
The difference between this amendment and many of the other proposals is that this amendment would broaden or tax services that we have not traditionally taxed in Pennsylvania. We would tax things for the first time. And one of the problems that I have with this amendment is that it drives up the cost of doing business. It makes Pennsylvania uncompetitive. And it is particularly harsh on small businesses, because now businesses that have not collected sales tax for the first time would have to hire staff, collect the tax, account for the tax, remit the tax on a quarterly basis, and be audited on the tax ...
Continued Page 194:
... So when you look at this amendment, it taxes far too many things and it drives up the cost of business, particularly small business. It makes us uncompetitive. It is not helpful to economic development. In fact, it is harmful to economic development in that regard and could lead to job cuts. So inasmuch as I am in favor of property tax relief, this measure is the wrong approach for all those reasons, and for those reasons I respectfully ask my colleagues to join me in voting against this amendment.
House Legislative Journal Jan 29, 2008:
Page 217:
Mr. STAIRS. Thank you, Mr. Speaker.
If I may, I would like to be brief in this long discussion. In my many years as a legislator, I have heard the negatives on the property tax and have not really seen too many people that like the property tax. It seems it is despised by all. So that means it is about time we do something. But certainly the legislation in front of us right now, this amendment, I think is the wrong way to go. When people find out what their taxes are going to be, if this was ever implemented, there would probably be a revolution in this Commonwealth.
Page 220:
Mr. GEORGE. Thank you, Mr. Speaker.
Mr. Speaker, I certainly will not be long.
This is the second day we are working with an amendment, and I do not begrudge the time in that we both, both Republicans and Democrats, have been for a dozen years when they each had the majority, had promised some relief on property tax. But whether the pain is in the arm or in the leg, removing it from one part of the body to another does not remove the pain, and the sales tax is the most regressive tax that any working family has to put up with. You know, if an individual lost his job, he still has to pay that homeowner's tax, but he still has to use what little he has to pay sales tax ...
… And adhering to what we have promised, that Pennsylvania now will adopt a plan to help those people in despair, to help those small businesses, to help these individuals who find this aggressive tax more aggressive than ever, but nevertheless, the sales tax is just as aggressive as this is, and I ask that we defeat this amendment.
Page 226:
The SPEAKER. Representative Daley.
Mr. DALEY. Thank you, Mr. Speaker.
... The financial institutions would also face an additional financial burden to change and manage the processes to capture and pay sales and use taxes on this expanded base. Fourthly, the Pennsylvania banks and out-of-State banks, as something that should concern all of us, would be viewed as equals with regard to services performed out of State for Pennsylvania customers, but compliance by out-of-State banks with the use tax in Pennsylvania would be absolutely difficult to enforce and would result, likely, to be unfair to our own banks. That competitive disadvantage for Pennsylvania banks would cause them to move more of their operations out of the State of Pennsylvania. The result could reduce tax revenues, not increase them, and this is according to the financial institutions in Pennsylvania. Services that many community banks purchase from third-party vendors could be deemed to be financial services and subject to taxation. Larger financial institutions offer back-office and other services that could be subject to the 6-percent sales tax.
Page 228:
The SPEAKER. The Chair recognizes the majority leader,
Representative DeWeese.
Mr. DeWEESE. Thank you very much, Mr. Speaker.
I will keep my remarks exceedingly brief. I just want to make two quick points. I think many times our debates are enhanced when we go back home in our commentary. The two major reasons I will be counterpoised against my good friend from Berks today come from Harry Readshaw's debate yesterday and from debate from Ms. Harper earlier today. Number one, my Republican colleagues for many years have been against the inheritance tax. They have called it the death tax. I think the Rohrer amendment could conceivably be a death-tax amendment. I think that if you go back to Greene County and talk to Chuck Behm at the Behm Funeral Home or over at the Milliken funeral facility or go down to talk to John Maykuth over in Masontown, and tell them that not only are their services going to be taxed but their vaults are going to be taxed, their caskets are going to be taxed, and if there is a probate dynamic at the end of that unhappy moment, the lawyer fees will be taxed. I just cannot think that amongst the tens and tens and tens of very good reasons that people have come to the microphone today to counter the honorable gentleman from Berks, preeminent in my thought process is I want to look at this as an additional death tax or a series of death taxes.
Page 230:
The Chair recognizes Representative Levdansky.
Mr. LEVDANSKY. Thank you, Mr. Speaker.
... Also, as I pointed out, the devil really is in the details. It really is in the details. This plan, this plan will tax practically everything from day care to death, and almost everything that happens in your life in between will be subject to the sales tax. I think there is just too much uncertainty and unpredictability about what that will mean for Pennsylvania's economy and what that means for funding public education in the Commonwealth.
All's quiet; an important meeting
19 August 2009
Dear Friends,
It’s been quite a while since the last PTCC Update and many of you have written to ask what’s happening with the School Property Tax Elimination Act (SPTEA). In a word, nothing. The General Assembly and the House and Senate leadership are far too occupied with budget concerns right now to consider any far-reaching legislation.
The SPTEA has been fully drafted and is still available for co-sponsorship. It is Representative Sam Rohrer’s intention to issue a second co-sponsorship memorandum shortly and then formally introduce the bill this autumn.
In the meantime, if you want to help you can contact your Representative to request his or her co-sponsorship of the School Property Tax Elimination Act. The bill currently has 26 sponsors but more is always better. The current sponsors are listed below; please contact your Representative if he or she is not on this list. In many cases you will be offered phony excuses why they won’t co-sponsor or why the plan won’t work, but this is almost always because of petty political maneuvering that has nothing to do with the worthiness of the bill. Accept no excuses!
The current School Property Tax Elimination Act co-sponsors:
Rep. Sam Rohrer R-128 (Berks)
Rep. Kerry Benninghoff R-171 (Centre, Mifflin)
Rep. Karen Boback R-117 (Columbia, Luzerne, Wyoming)
Rep. Thomas Caltagirone D-127 (Berks)
Rep. Jim Cox R-129 (Berks)
Rep. Tom Creighton R-37 (Lancaster)
Rep. Gary Day R-187 (Berks, Lehigh)
Rep. Gordon Denlinger R-99 (Lancaster)
Rep. Russell Fairchild R-85 (Snyder, Union)
Rep. Jaret Gibbons D-10 (Beaver, Butler, Lawrence)
Rep. Keith Gillespie R-47 (York)
Rep. Neal Goodman D-123 (Schuylkill)
Rep. Seth Grove R-196 (York)
Rep. C. Adam Harris R-82 (Juniata, Mifflin, Snyder)
Rep. Rob Kauffman R-89 (Cumberland, Franklin)
Rep. Mark Keller R-86 (Franklin, Perry)
Rep. Jerry Knowles R-124 (Berks, Schuylkill)
Rep. Tim Mahoney D-51 (Fayette)
Rep. Bob Mensch R-147 (Montgomery)
Rep. Merle Phillips R-108 (Northumberland, Snyder)
Rep. Thomas Quigley R-146 (Montgomery)
Rep. Dante Santoni D-126 (Berks)
Rep. Stan Saylor R-94 (York)
Rep. Curt Schroder R-155 (Chester)
Rep. Tim Seip D-125 (Berks, Schuylkill)
Rep. RoseMarie Swanger R-102 (Lebanon)
The PTCC and the Pennsylvania Coalition of Taxpayer Associations send our heartfelt gratitude to those Representatives who have agreed to co-sponsor the SPTEA. If your Representative is on this list, we STRONGLY request that you contact him or her to thank them for their co-sponsorship. These legislators are always very encouraged to know that their help is appreciated.
Whether you are contacting your Representative to thank them or to request their co-sponsorship, you can find their contact information by Zip+4 here.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Northeast Pennsylvania Information Session
Northeast Pennsylvania is by far the worst region of the state for legislative support for the School Property Tax Elimination Act. To help overcome this problem, the five Northeast region member groups of the Pennsylvania Coalition of Taxpayer Associations will be holding a public information session about the SPTEA in late September. These five grassroots groups will introduce their organizations, the details of the SPTEA will be presented, and the politics of the SPTEA enactment will be discussed; there will also be an audience participation question and answer session following the presentation. The event will be emceed by Sue Henry of WILK radio. This promises to be an exciting evening, so please watch for a future PTCC Update for further details and plan to attend.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Welcome CEPT!
The Pennsylvania Coalition of Taxpayer Associations (PCTA) recently gained its thirty-second member group! Citizens for the Elimination of Property Taxes from Perry County has already proven to be a hard-working, dedicated organization that will be a big help in supporting the SPTEA in South-central Pennsylvania. If you live in the Perry County area and want to help you can contact them at nopropertytax@gmail.com. Welcome to the PCTA, CEPT! We’re pleased to have you aboard to keep the momentum building.
If you’re fed up with unfair taxation and unresponsive politicians and would like to form your own taxpayer advocacy group, contact any PCTA member group for advice and assistance. The PCTA members are listed on the PTCC website under the “About the PCTA” tab.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Just one more note: If you change your e-mail address, please send a note to me about the switch so you’ll continue to receive the PTCC Updates. It will be appreciated.
That’s all for now. There’ll be another update when more information is available and please watch for details about the Northeast Pennsylvania event.
As usual, I want to thank all of you for your continuing support of the PTCC and PCTA efforts to bring about true education finance reform and school property tax elimination. You are truly appreciated.
David Baldinger
PTCC Administrator
www.ptcc.us
Dear Friends,
It’s been quite a while since the last PTCC Update and many of you have written to ask what’s happening with the School Property Tax Elimination Act (SPTEA). In a word, nothing. The General Assembly and the House and Senate leadership are far too occupied with budget concerns right now to consider any far-reaching legislation.
The SPTEA has been fully drafted and is still available for co-sponsorship. It is Representative Sam Rohrer’s intention to issue a second co-sponsorship memorandum shortly and then formally introduce the bill this autumn.
In the meantime, if you want to help you can contact your Representative to request his or her co-sponsorship of the School Property Tax Elimination Act. The bill currently has 26 sponsors but more is always better. The current sponsors are listed below; please contact your Representative if he or she is not on this list. In many cases you will be offered phony excuses why they won’t co-sponsor or why the plan won’t work, but this is almost always because of petty political maneuvering that has nothing to do with the worthiness of the bill. Accept no excuses!
The current School Property Tax Elimination Act co-sponsors:
Rep. Sam Rohrer R-128 (Berks)
Rep. Kerry Benninghoff R-171 (Centre, Mifflin)
Rep. Karen Boback R-117 (Columbia, Luzerne, Wyoming)
Rep. Thomas Caltagirone D-127 (Berks)
Rep. Jim Cox R-129 (Berks)
Rep. Tom Creighton R-37 (Lancaster)
Rep. Gary Day R-187 (Berks, Lehigh)
Rep. Gordon Denlinger R-99 (Lancaster)
Rep. Russell Fairchild R-85 (Snyder, Union)
Rep. Jaret Gibbons D-10 (Beaver, Butler, Lawrence)
Rep. Keith Gillespie R-47 (York)
Rep. Neal Goodman D-123 (Schuylkill)
Rep. Seth Grove R-196 (York)
Rep. C. Adam Harris R-82 (Juniata, Mifflin, Snyder)
Rep. Rob Kauffman R-89 (Cumberland, Franklin)
Rep. Mark Keller R-86 (Franklin, Perry)
Rep. Jerry Knowles R-124 (Berks, Schuylkill)
Rep. Tim Mahoney D-51 (Fayette)
Rep. Bob Mensch R-147 (Montgomery)
Rep. Merle Phillips R-108 (Northumberland, Snyder)
Rep. Thomas Quigley R-146 (Montgomery)
Rep. Dante Santoni D-126 (Berks)
Rep. Stan Saylor R-94 (York)
Rep. Curt Schroder R-155 (Chester)
Rep. Tim Seip D-125 (Berks, Schuylkill)
Rep. RoseMarie Swanger R-102 (Lebanon)
The PTCC and the Pennsylvania Coalition of Taxpayer Associations send our heartfelt gratitude to those Representatives who have agreed to co-sponsor the SPTEA. If your Representative is on this list, we STRONGLY request that you contact him or her to thank them for their co-sponsorship. These legislators are always very encouraged to know that their help is appreciated.
Whether you are contacting your Representative to thank them or to request their co-sponsorship, you can find their contact information by Zip+4 here.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Northeast Pennsylvania Information Session
Northeast Pennsylvania is by far the worst region of the state for legislative support for the School Property Tax Elimination Act. To help overcome this problem, the five Northeast region member groups of the Pennsylvania Coalition of Taxpayer Associations will be holding a public information session about the SPTEA in late September. These five grassroots groups will introduce their organizations, the details of the SPTEA will be presented, and the politics of the SPTEA enactment will be discussed; there will also be an audience participation question and answer session following the presentation. The event will be emceed by Sue Henry of WILK radio. This promises to be an exciting evening, so please watch for a future PTCC Update for further details and plan to attend.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Welcome CEPT!
The Pennsylvania Coalition of Taxpayer Associations (PCTA) recently gained its thirty-second member group! Citizens for the Elimination of Property Taxes from Perry County has already proven to be a hard-working, dedicated organization that will be a big help in supporting the SPTEA in South-central Pennsylvania. If you live in the Perry County area and want to help you can contact them at nopropertytax@gmail.com. Welcome to the PCTA, CEPT! We’re pleased to have you aboard to keep the momentum building.
If you’re fed up with unfair taxation and unresponsive politicians and would like to form your own taxpayer advocacy group, contact any PCTA member group for advice and assistance. The PCTA members are listed on the PTCC website under the “About the PCTA” tab.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Just one more note: If you change your e-mail address, please send a note to me about the switch so you’ll continue to receive the PTCC Updates. It will be appreciated.
That’s all for now. There’ll be another update when more information is available and please watch for details about the Northeast Pennsylvania event.
As usual, I want to thank all of you for your continuing support of the PTCC and PCTA efforts to bring about true education finance reform and school property tax elimination. You are truly appreciated.
David Baldinger
PTCC Administrator
www.ptcc.us
Reading Eagle Editorial and Response
On May 14, 2009, the Reading Eagle published an outrageous editorial titled "Sales tax is not the means to eliminate property tax" that strongly opposed the School Property Tax Elimination Act.
You can read the editorial on the Reading Eagle website here.
The editorial was damaging enough, but, even worse, the piece was loaded with false information from beginning to end - in fact, not one thing this editorial said was correct. If the Eagle wants to oppose the SPTEA that is their right but they could at least do it without resorting to false information to prove their point. What ever happened to journalistic integrity?
Who researched this for the Eagle editorial board? How could the Eagle editorial board get this so wrong? What is their agenda for printing so much incorrect information? It is obvious from the glaring errors that they knew nothing about the details of the SPTEA. It was irresponsible of the Eagle to not get the facts correct before taking such a slanted editorial stance.
The SPTEA prime sponsor, Representative Sam Rohrer (128-Berks), requested equal space for a rebuttal op-ed piece but was denied. Instead, he was told to submit his rebuttal as a 200 word letter to the editor; this is nowhere near the space required to fully correct the many errors. To allow Representative Rohrer the opportunity to completely rebut the editorial, we have posted his full version below.
If you would care to write your own letter to the editor regarding this, send it to letters@readingeagle.com.
Editorial Response
Your most recent editorial (“Sales tax is not the means to eliminate property tax,” Reading Eagle, May 14) called me “persistent.” In that spirit, I wish to respond to the editorial and respectfully disagree with your assessment.
First, briefly, I would like to point out that the 501 school districts do not levy a sales tax, but rather a property tax, which does indeed raise $9.9 billion.
“Widening the sales tax to cover some items that currently are not taxed very well could raise an additional $1.3 billion.”
In fact, based on the Pennsylvania Department of Revenue’s figures from the past few years, widening the sales tax can and will raise an additional $7 billion because we are now including many previously untaxed goods and most services. To ensure that we do not have to tax food and clothing, the plan also proposes taking a portion of the extraordinary proven future revenues raised by royalty payments located on state-owned Marcellus Shale natural gas fields.
“But remember that the money raised by the sales tax goes into the general fund...so the expanded sales tax would have to raise $18.5 billion in order to replace the real estate tax and to continue funding the things already funded by the sales tax.”
Currently, the sales tax does go into the General Fund but is essentially allocated for the purpose of funding education and does not need to be replaced as you claim. My plan does not take money away from the General Fund. Instead, it takes all the current sales tax revenue designated for education and moves it into a separate and protected Educational Operating Fund. As such, both the current sales tax and the new, expanded sales tax, would be protected from normal General Fund expenditures and reserved only for education—as it should be.
Since my plan does not take any money away from General Fund appropriations, the sales tax would only have to replace $7 billion in homestead/farmstead school property tax revenue—nowhere near the $18.5 billion that you claim.
“And one must take into account that in this economy, the sales tax is not raising as much money as it has in better times.”
It is indeed unfortunate that these economic times are stretching the resources of our citizens and businesses like few other times in our nation’s history. While the Eagle points out that cutting spending would necessitate cutting personnel or debt payments, the schools must first cut extracurricular and non-educational programs, where there is currently room. Second, I fully recognize the difficulties of school districts facing unfunded mandates from both the state and the federal government, and agree that these burdensome requirements need to be altered or funded as promised. The premise, however, is that schools and their programs are not sacred cows and in times of revenue shortfalls must reduce expenses just like all homeowners.
“We have long advocated an income tax to fill that role [of the property tax].”
Finally, please know that I am first and foremost concerned with the elimination of school property taxes. If we can find another way to do so, I will not hesitate to support any plan that frees homeowners from this onerous burden. In my sixteen years in office, however, I am firmly convinced that the plan we have formulated is in the best interests of education and the citizens of Pennsylvania. In this particular plan, I point to the same Department of Revenue April revenue figures the Eagle quoted: sales tax revenue is down 6.7%, but the income tax was down over 10%. The facts are clear: the sales tax is the most stable way to provide funding for our schools and it was begun in 1953 expressly for this purpose.
The bottom line is that no one wants to cut anything. This is not a political plan—this is a financial and fiscal plan. As an elected official, I have the responsibility to do what is legislatively and fiscally sound, even if it is not politically expedient. I am grateful for this opportunity to add significant facts to this debate, and welcome the continued public discussion.
Rep. Samuel Rohrer
128th District
Pennsylvania House of Representatives
You can read the editorial on the Reading Eagle website here.
The editorial was damaging enough, but, even worse, the piece was loaded with false information from beginning to end - in fact, not one thing this editorial said was correct. If the Eagle wants to oppose the SPTEA that is their right but they could at least do it without resorting to false information to prove their point. What ever happened to journalistic integrity?
Who researched this for the Eagle editorial board? How could the Eagle editorial board get this so wrong? What is their agenda for printing so much incorrect information? It is obvious from the glaring errors that they knew nothing about the details of the SPTEA. It was irresponsible of the Eagle to not get the facts correct before taking such a slanted editorial stance.
The SPTEA prime sponsor, Representative Sam Rohrer (128-Berks), requested equal space for a rebuttal op-ed piece but was denied. Instead, he was told to submit his rebuttal as a 200 word letter to the editor; this is nowhere near the space required to fully correct the many errors. To allow Representative Rohrer the opportunity to completely rebut the editorial, we have posted his full version below.
If you would care to write your own letter to the editor regarding this, send it to letters@readingeagle.com.
Editorial Response
Your most recent editorial (“Sales tax is not the means to eliminate property tax,” Reading Eagle, May 14) called me “persistent.” In that spirit, I wish to respond to the editorial and respectfully disagree with your assessment.
First, briefly, I would like to point out that the 501 school districts do not levy a sales tax, but rather a property tax, which does indeed raise $9.9 billion.
“Widening the sales tax to cover some items that currently are not taxed very well could raise an additional $1.3 billion.”
In fact, based on the Pennsylvania Department of Revenue’s figures from the past few years, widening the sales tax can and will raise an additional $7 billion because we are now including many previously untaxed goods and most services. To ensure that we do not have to tax food and clothing, the plan also proposes taking a portion of the extraordinary proven future revenues raised by royalty payments located on state-owned Marcellus Shale natural gas fields.
“But remember that the money raised by the sales tax goes into the general fund...so the expanded sales tax would have to raise $18.5 billion in order to replace the real estate tax and to continue funding the things already funded by the sales tax.”
Currently, the sales tax does go into the General Fund but is essentially allocated for the purpose of funding education and does not need to be replaced as you claim. My plan does not take money away from the General Fund. Instead, it takes all the current sales tax revenue designated for education and moves it into a separate and protected Educational Operating Fund. As such, both the current sales tax and the new, expanded sales tax, would be protected from normal General Fund expenditures and reserved only for education—as it should be.
Since my plan does not take any money away from General Fund appropriations, the sales tax would only have to replace $7 billion in homestead/farmstead school property tax revenue—nowhere near the $18.5 billion that you claim.
“And one must take into account that in this economy, the sales tax is not raising as much money as it has in better times.”
It is indeed unfortunate that these economic times are stretching the resources of our citizens and businesses like few other times in our nation’s history. While the Eagle points out that cutting spending would necessitate cutting personnel or debt payments, the schools must first cut extracurricular and non-educational programs, where there is currently room. Second, I fully recognize the difficulties of school districts facing unfunded mandates from both the state and the federal government, and agree that these burdensome requirements need to be altered or funded as promised. The premise, however, is that schools and their programs are not sacred cows and in times of revenue shortfalls must reduce expenses just like all homeowners.
“We have long advocated an income tax to fill that role [of the property tax].”
Finally, please know that I am first and foremost concerned with the elimination of school property taxes. If we can find another way to do so, I will not hesitate to support any plan that frees homeowners from this onerous burden. In my sixteen years in office, however, I am firmly convinced that the plan we have formulated is in the best interests of education and the citizens of Pennsylvania. In this particular plan, I point to the same Department of Revenue April revenue figures the Eagle quoted: sales tax revenue is down 6.7%, but the income tax was down over 10%. The facts are clear: the sales tax is the most stable way to provide funding for our schools and it was begun in 1953 expressly for this purpose.
The bottom line is that no one wants to cut anything. This is not a political plan—this is a financial and fiscal plan. As an elected official, I have the responsibility to do what is legislatively and fiscally sound, even if it is not politically expedient. I am grateful for this opportunity to add significant facts to this debate, and welcome the continued public discussion.
Rep. Samuel Rohrer
128th District
Pennsylvania House of Representatives
The SPTEA is Announced; 2009 gambling rebates posted.
Update and ** ACTION ITEM **
05 May 2009
Dear Friends,
There have been many developments on the property tax front during the past week. To keep from overloading you, this update covers only three of the items; the remainder will be sent in a later update.
2009 SPTEA Announced!
On Monday, May 4, Representative Sam Rohrer (128–Berks) announced this session’s introduction of House Bill 1275, the School Property Tax Elimination Act, in a press release. The release is copied below my signature.
The new bill will be formally introduced in the Pennsylvania House of Representatives in the near future. Until this happens, we need to gather as many co-sponsors as possible for this bill.
** ACTION ITEM **
This is VERY important! If you will, please contact your representative as soon as possible to firmly request his or her co-sponsorship of HB 1275, the School Property Tax Elimination Act. Although some representatives may offer more of their lame excuses for not co-sponsoring, please do not accept them! You can find your representative and contact information by Zip+4 here.
Further, please circulate this update as widely as possible to your friends, neighbors, and relatives and ask all of them to also contact their representative. The more co-sponsors we have on the bill the better our chances for action.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2009 Gambling-funded property tax relief posted
On May 1 the Pennsylvania Department of Education released the preliminary estimated 2009 tax relief from gambling money for most Pennsylvania School Districts. For many homeowners the amount of the relief is about the same as last year and varies between $32 and $641, depending on your school district.
The relief charts have been posted on the PTCC website here. Please note that the relief numbers are incomplete for some districts because a few counties have not yet reported their number of eligible homesteads. The charts will be updated as new information becomes available.
Don't get too excited about your huge and historic (Governor Rendell's words) “relief” money and don't plan to spend all of it in one place!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
New SPTEA Petition
Jeff Helwig of the PCTA’s Wyoming County group has written an excellent petition in support of the SPTEA that can be distributed throughout the state. Jeff has volunteered to spearhead this effort by spreading the petitions across the state and then collecting all completed petitions, with the intent of organizing a march on Harrisburg later this year to present them to the General Assembly.
The PCTA and PTCC are asking that you circulate this petition as widely as possible, send it others, and work to find volunteers to ask for signatures at the polls on Election Day, May 19. Election Day would be a great time to gather LOTS of signatures and to spread the word about the SPTEA. If you can also separately gather e-mail addresses from signers and send them to me I'd appreciate it - I'll send them invitations to join the PTCC e-mail list.
The five page petition is available as a PDF file on the PTCC website here. You can print it as five separate pages or flip the paper over and print both sides.
You can send completed petitions to Jeff at:
Wyoming County Concerned Taxpayers PAC
1501 SR6 West
Tunkhannock, PA 18657
Jeff will keep us informed of our progress on this initiative.
I'd like to express my sincere appreciation to Jeff for his work and initiative in starting this effort. Thanks, Jeff!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
That’s all for today. As I mentioned above, I’ll send another PTCC Update shortly to cover other items that have developed during the past week.
My sincere thanks to all of you for your continuing support of our efforts to eliminate property taxes and reform the Pennsylvania education finance system.
Please feel free to write to me at any time with questions or concerns.
David Baldinger
PTCC Administrator
www.ptcc.us
FOR IMMEDIATE RELEASE
May 4, 2009
Rohrer Reintroduces School Property Tax Elimination Act
Touting the benefits Pennsylvania has lost by not acting sooner, Rohrer says eliminating the unfair tax would jumpstart Pennsylvania’s economy
HARRISBURG— Hailing it as the single most important step Pennsylvania lawmakers could take to jumpstart the state’s economy, prime sponsor Rep. Sam Rohrer (R-Berks) today unveiled the School Property Tax Elimination Act (SPTEA).
“The SPTEA offers a dramatic comparison to the current federal stimulus plan,” Rohrer said. “Compared to the federal stimulus of $18 billion over three years, the SPTEA would infuse approximately $7 billion annually into the economy, as homeowners are freed from their onerous property tax bills. The magnitude of the plan simply dwarfs any other options, without using government spending or subsidies, and puts billions into the hands of our citizens to pay their bills, invest in the economy or support local businesses.
“No tax should have the power to leave you homeless,” Rohrer continued. “Seniors citizens, retired couples, young families, recently laid-off workers—through no fault of their own, all these people are standing on the precipice of losing their homes, as their pensions have plummeted and incomes have been reduced or even eliminated. For families struggling to make mortgage payments, this plan offers the only true hope of remaining in their homes and securing their home ownership.”
The bill is distinctive in that it remains the only plan that has the capacity and the simplicity to present a comprehensive restructuring of the way Pennsylvania funds its schools and addresses issues of spending controls, predictability, debt, and distribution. Instead of relying on local school property taxes, school districts would receive their primary source of funding from an expanded state sales tax. The sales tax rate would remain at 6 percent, but would be expanded to include some currently tax-exempt items. Food, clothing, prescription medications and other essential items and services would not be taxed under Rohrer’s plan. The SPTEA also would use new rent and royalty payments generated through expanded natural gas harvesting activities on state forest lands to fund Pennsylvania schools.
“Partial reduction is not the answer,” Rohrer stated. “Taxes continue to rise unabated, and the governor’s so-called ‘Property Tax Relief Fund’ barely makes a dent in what most taxpayers have to pay. It’s a political response, designed to alleviate the problem and never solve it, and it has distracted from the real issue. The only solution is complete and total elimination.”
Funds from the expanded state sales tax and the revenues from Marcellus Shale natural gas development would be deposited into a newly created Education Operating Fund (EOF). The money in the EOF would be used to implement a four-year phase out of school district property taxes. The phase-out would ensure a smooth transition into the new system without disrupting normal operations of either schools or businesses.
“When we first introduced the idea of school property tax elimination, our proposal ran parallel with Governor Rendell’s proposal to use gambling proceeds to relieve—never solve—the property tax burden,” Rohrer said. “Here we are, seven years later, and homeowners have received just one payment, and a pittance at that, to help with their taxes. Had we enacted the SPTEA back then, we would have already passed through the four-year phase out. Homeowners would not only be free from paying any school property taxes, but the state would have had the time to build up the excess revenue in order to weather this current economic storm.”
The SPTEA addresses the spending side of the equation, tying the school districts’ revenue to the sales tax. Under the current system, as overall property tax revenue decreases because of increasing foreclosures and delinquencies, schools are forced to consider raising their property tax rates, further burdening those who can pay and creating a vicious cycle of foreclosures and delinquencies. Under Rohrer’s plan, the sales tax would continue to create a stable form of revenue. Even in difficult economic climates when the sales tax revenue declines, schools would be forced, along with all Pennsylvanians, to reduce their spending.
Rohrer argued that using the state sales tax to fund education poses significant benefits over the existing property tax system. Specifically, he noted that the sales tax was instituted in 1953 expressly for the purpose of educational funding, and as such remains the best-suited source for the schools because sales tax revenue—and thus school revenue—will grow as the economy improves. In addition, Pennsylvanians will have more control over the amount of taxes they pay, as they can increase or reduce their tax burden based on the purchases they make. Finally, sales tax revenue is sensitive to economic realities, ensuring that when Pennsylvania families are forced to reduce their consumption, schools also will be forced to reign in their spending.
Rohrer’s plan also offers the first real opportunity for voters to have direct control over any future tax increases. Under the SPTEA, any future tax increases would have to be approved by voters through a ballot referendum.
“Under the provisions of Act 1, the voter referendums we have are what I like to call ‘taxpayer protection in name only,’” Rohrer said. “Sure, we have a law that says voters are supposed to have the right to approve or deny any school tax increases. But the Department of Education usually grants the district an exemption and the voters never have a chance to vote on the tax increase. My plan offers real voter empowerment where previous plans offered only false hope.”
“For years, school property tax elimination seemed like a pie-in-the-sky idea to lawmakers in Harrisburg—a noble but impractical goal,” Rohrer said. “But we have a plan to make that dream a reality. Now, it is only a matter of whether state lawmakers choose to listen to their constituents and then act upon their cries in order to make that dream come true for Pennsylvania property taxpayers.”
The SPTEA will be introduced as House Bill 1275. For more information about the proposal, visit Rohrer’s Web site at SamRohrer.com.
# # #
05 May 2009
Dear Friends,
There have been many developments on the property tax front during the past week. To keep from overloading you, this update covers only three of the items; the remainder will be sent in a later update.
2009 SPTEA Announced!
On Monday, May 4, Representative Sam Rohrer (128–Berks) announced this session’s introduction of House Bill 1275, the School Property Tax Elimination Act, in a press release. The release is copied below my signature.
The new bill will be formally introduced in the Pennsylvania House of Representatives in the near future. Until this happens, we need to gather as many co-sponsors as possible for this bill.
** ACTION ITEM **
This is VERY important! If you will, please contact your representative as soon as possible to firmly request his or her co-sponsorship of HB 1275, the School Property Tax Elimination Act. Although some representatives may offer more of their lame excuses for not co-sponsoring, please do not accept them! You can find your representative and contact information by Zip+4 here.
Further, please circulate this update as widely as possible to your friends, neighbors, and relatives and ask all of them to also contact their representative. The more co-sponsors we have on the bill the better our chances for action.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2009 Gambling-funded property tax relief posted
On May 1 the Pennsylvania Department of Education released the preliminary estimated 2009 tax relief from gambling money for most Pennsylvania School Districts. For many homeowners the amount of the relief is about the same as last year and varies between $32 and $641, depending on your school district.
The relief charts have been posted on the PTCC website here. Please note that the relief numbers are incomplete for some districts because a few counties have not yet reported their number of eligible homesteads. The charts will be updated as new information becomes available.
Don't get too excited about your huge and historic (Governor Rendell's words) “relief” money and don't plan to spend all of it in one place!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
New SPTEA Petition
Jeff Helwig of the PCTA’s Wyoming County group has written an excellent petition in support of the SPTEA that can be distributed throughout the state. Jeff has volunteered to spearhead this effort by spreading the petitions across the state and then collecting all completed petitions, with the intent of organizing a march on Harrisburg later this year to present them to the General Assembly.
The PCTA and PTCC are asking that you circulate this petition as widely as possible, send it others, and work to find volunteers to ask for signatures at the polls on Election Day, May 19. Election Day would be a great time to gather LOTS of signatures and to spread the word about the SPTEA. If you can also separately gather e-mail addresses from signers and send them to me I'd appreciate it - I'll send them invitations to join the PTCC e-mail list.
The five page petition is available as a PDF file on the PTCC website here. You can print it as five separate pages or flip the paper over and print both sides.
You can send completed petitions to Jeff at:
Wyoming County Concerned Taxpayers PAC
1501 SR6 West
Tunkhannock, PA 18657
Jeff will keep us informed of our progress on this initiative.
I'd like to express my sincere appreciation to Jeff for his work and initiative in starting this effort. Thanks, Jeff!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
That’s all for today. As I mentioned above, I’ll send another PTCC Update shortly to cover other items that have developed during the past week.
My sincere thanks to all of you for your continuing support of our efforts to eliminate property taxes and reform the Pennsylvania education finance system.
Please feel free to write to me at any time with questions or concerns.
David Baldinger
PTCC Administrator
www.ptcc.us
FOR IMMEDIATE RELEASE
May 4, 2009
Rohrer Reintroduces School Property Tax Elimination Act
Touting the benefits Pennsylvania has lost by not acting sooner, Rohrer says eliminating the unfair tax would jumpstart Pennsylvania’s economy
HARRISBURG— Hailing it as the single most important step Pennsylvania lawmakers could take to jumpstart the state’s economy, prime sponsor Rep. Sam Rohrer (R-Berks) today unveiled the School Property Tax Elimination Act (SPTEA).
“The SPTEA offers a dramatic comparison to the current federal stimulus plan,” Rohrer said. “Compared to the federal stimulus of $18 billion over three years, the SPTEA would infuse approximately $7 billion annually into the economy, as homeowners are freed from their onerous property tax bills. The magnitude of the plan simply dwarfs any other options, without using government spending or subsidies, and puts billions into the hands of our citizens to pay their bills, invest in the economy or support local businesses.
“No tax should have the power to leave you homeless,” Rohrer continued. “Seniors citizens, retired couples, young families, recently laid-off workers—through no fault of their own, all these people are standing on the precipice of losing their homes, as their pensions have plummeted and incomes have been reduced or even eliminated. For families struggling to make mortgage payments, this plan offers the only true hope of remaining in their homes and securing their home ownership.”
The bill is distinctive in that it remains the only plan that has the capacity and the simplicity to present a comprehensive restructuring of the way Pennsylvania funds its schools and addresses issues of spending controls, predictability, debt, and distribution. Instead of relying on local school property taxes, school districts would receive their primary source of funding from an expanded state sales tax. The sales tax rate would remain at 6 percent, but would be expanded to include some currently tax-exempt items. Food, clothing, prescription medications and other essential items and services would not be taxed under Rohrer’s plan. The SPTEA also would use new rent and royalty payments generated through expanded natural gas harvesting activities on state forest lands to fund Pennsylvania schools.
“Partial reduction is not the answer,” Rohrer stated. “Taxes continue to rise unabated, and the governor’s so-called ‘Property Tax Relief Fund’ barely makes a dent in what most taxpayers have to pay. It’s a political response, designed to alleviate the problem and never solve it, and it has distracted from the real issue. The only solution is complete and total elimination.”
Funds from the expanded state sales tax and the revenues from Marcellus Shale natural gas development would be deposited into a newly created Education Operating Fund (EOF). The money in the EOF would be used to implement a four-year phase out of school district property taxes. The phase-out would ensure a smooth transition into the new system without disrupting normal operations of either schools or businesses.
“When we first introduced the idea of school property tax elimination, our proposal ran parallel with Governor Rendell’s proposal to use gambling proceeds to relieve—never solve—the property tax burden,” Rohrer said. “Here we are, seven years later, and homeowners have received just one payment, and a pittance at that, to help with their taxes. Had we enacted the SPTEA back then, we would have already passed through the four-year phase out. Homeowners would not only be free from paying any school property taxes, but the state would have had the time to build up the excess revenue in order to weather this current economic storm.”
The SPTEA addresses the spending side of the equation, tying the school districts’ revenue to the sales tax. Under the current system, as overall property tax revenue decreases because of increasing foreclosures and delinquencies, schools are forced to consider raising their property tax rates, further burdening those who can pay and creating a vicious cycle of foreclosures and delinquencies. Under Rohrer’s plan, the sales tax would continue to create a stable form of revenue. Even in difficult economic climates when the sales tax revenue declines, schools would be forced, along with all Pennsylvanians, to reduce their spending.
Rohrer argued that using the state sales tax to fund education poses significant benefits over the existing property tax system. Specifically, he noted that the sales tax was instituted in 1953 expressly for the purpose of educational funding, and as such remains the best-suited source for the schools because sales tax revenue—and thus school revenue—will grow as the economy improves. In addition, Pennsylvanians will have more control over the amount of taxes they pay, as they can increase or reduce their tax burden based on the purchases they make. Finally, sales tax revenue is sensitive to economic realities, ensuring that when Pennsylvania families are forced to reduce their consumption, schools also will be forced to reign in their spending.
Rohrer’s plan also offers the first real opportunity for voters to have direct control over any future tax increases. Under the SPTEA, any future tax increases would have to be approved by voters through a ballot referendum.
“Under the provisions of Act 1, the voter referendums we have are what I like to call ‘taxpayer protection in name only,’” Rohrer said. “Sure, we have a law that says voters are supposed to have the right to approve or deny any school tax increases. But the Department of Education usually grants the district an exemption and the voters never have a chance to vote on the tax increase. My plan offers real voter empowerment where previous plans offered only false hope.”
“For years, school property tax elimination seemed like a pie-in-the-sky idea to lawmakers in Harrisburg—a noble but impractical goal,” Rohrer said. “But we have a plan to make that dream a reality. Now, it is only a matter of whether state lawmakers choose to listen to their constituents and then act upon their cries in order to make that dream come true for Pennsylvania property taxpayers.”
The SPTEA will be introduced as House Bill 1275. For more information about the proposal, visit Rohrer’s Web site at SamRohrer.com.
# # #
No property tax relief this year? And a deputy sheriff speaks out.
27 March 2009
Dear Friends,
Today’s update contains a few notes of interest and two stories that will probably infuriate you and will strongly emphasize the need to continue our efforts for property tax elimination.
- There’s not much to report about the reintroduction of the School Property Tax Elimination Act (SPTEA). Although no definite date has been set, we’re expecting an introduction of the bill before the end of April. I’ll send an update immediately when we know more.
- Most people who are paying a mortgage have their property tax bills sent directly to their mortgage holder and a property tax escrow amount is included in their monthly payment. When they receive their annual escrow analysis that includes an increase in their monthly payment, many of these folks just consider this a part of doing business and are unaware of the total amount of taxes paid. When you ask folks to support the SPTEA, please tell them to look at their total property tax bill to see how much they can save if school taxes are totally eliminated.
- A PTCC subscriber sent me a response from Senate Majority Leader Dominic Pileggi (R-9) to a letter he wrote asking for the senator’s help in enacting the SPTEA. Senator Pileggi’s reply contained more than a page of useless rhetoric followed by his endorsement of slots money for property tax “relief” (more about this below). From the tone of his letter, it is pretty obvious that Senator Pileggi has no interest whatsoever in tackling the elimination property taxes. This is unfortunate since he, as Majority Leader, has the power to determine the flow of legislation in the senate. All of you, and especially those in his district, might want to send Senator Pileggi a letter advising him of your displeasure at his inaction on this issue. dpileggi@pasen.gov
- The Pennsylvania Coalition of Taxpayer Associations (PCTA) is pleased to announce the addition of the 31st taxpayer group to the alliance. The Wyoming County Concerned Taxpayers joined us earlier in March in support of the SPTEA and we’re excited to have them as part of our coalition. Welcome! If you’re a resident of Wyoming County, please consider joining this very active and focused group. Contact information is available on the PTCC website under the “About the PCTA” tab. If you’ve considered starting a taxpayer group in your area and need help, contact any PCTA member group for assistance.
- Just one more short item: Each month we lose a few PTCC subscribers because they’ve changed their e-mail address or internet service provider. If your e-mail address changes, please send a brief note with the old and new addresses so you will continue to receive the updates.
Now for the stories …
- - - - - - - - - - - - - - - - - - - -
No property tax relief this year?
In the March 23 edition of the Harrisburg Patriot-News, reporter Sharon Smith wrote an article
By law, the property tax relief fund must reach a trigger level of $570 million by April 15 before the state can distribute any “relief”. A spokesperson for the Governor’s Budget Office indicated that revenue through the end of February will total about $505 million, leaving a $65 million shortfall to be made up by the certification date. Average monthly relief revenue is about $46 million, so it is very possible that the trigger level will not be reached. Even if it is, the amount of relief will be even less than the minimal amount that was distributed last year.
This has a number of very ugly consequences, especially for those who live in modest homes in school districts where last year’s relief was greatest. Here’s a quick example that was calculated by a finance expert who is a member of our coalition:
Last year’s property tax relief in the York School District was $525. The total gross school property tax on a home assessed at approximately $34,000 was $1,000, leaving that homeowner with a $475 net tax bill after the reduction. If there is no property tax relief this year, this homeowner will have to pay the full $1,000 - a tax increase of 110% over last year’s bill, and this assumes that there will be no increase in this year’s school property taxes. If the York SD increases taxes to the 6.5% Act 1 limit, this homeowner will pay $1065, a tax increase of 124% over last year!
Using the same math, a York SD home that is assessed at the $55,000 average for the district would see a 57.3% increase.
But it can get even worse.
The immediate impact could be much more than what you’d think if a person's real estate taxes are escrowed. Using the average assessed home value above as an example, the property tax could go up about $600, which means the mortgage company will likely be that much "short" when they make the tax payment this summer. First, they'll have to make up the shortfall for this year by adding $50+ to your monthly payment. Second, they'll raise the escrow at least another $50+ per month for next year's bill so they aren't behind in the escrow again next year. The potential result? A double-whammy of about $1,200, or $100 per month. This could vary depending on how far under or over you are with your current escrow balance.
In short, look for little to no “relief” this year and the real possibility of some pain compared to last year.
This is the sad result of the “substantial” property tax relief that was promised to us by the governor and the lawmakers who were the rabid proponents of legalized gambling. Do you still believe that legalizing slot machines was about property tax relief? Can you believe that they are still insisting that this is the answer to the property tax crisis? All of the bogus property tax “relief” plans that have been, and continue to be, foisted on us are motivated by nothing more than worthless, self-serving politics that has no regard whatsoever for the taxpayers.
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A Deputy Sheriff speaks out!
It is estimated that about 10,000 homes are sold at sheriff’s sale each year in Pennsylvania. Even though that number in itself is shocking, few of us know the truly revolting details of how this is done.
In January I received a letter from a deputy sheriff that described the process of evicting a family whose home is being sold at a sheriff’s sale. While I have no reason to doubt the letter’s accuracy, I nonetheless submitted it to a deputy in a different area of the state who verified that the facts are correct. Here’s the letter:
****
From:
Date: Jan 19, 2009
Subject: A Deputy Sheriff's View of Property Tax Seizures
Dear David,
I have to write you this note because of disgust I have with the excessive taxes and the ugly result that is happening to our property owners in Pennsylvania.
I am a Deputy Sheriff in Pennsylvania. One of the duties of our job is to serve foreclosure notices and conduct physical evictions on property owners. Imagine having someone knock on your door up to 10:00 P.M. in the evening. You answer the door and are faced with two or more Deputy Sheriffs in full uniform with a marked sheriff’s car outside. The local police may already been notified in the event of a "problem". The neighbors may be watching. One of the deputies presents you with a court order stating that you are being evicted from your home due to unpaid property taxes. This process may already taken a year or so before coming to this tragic end, but the property owner knows it's coming. The property owner reacts with fear, uncertainty, anger and shame.
You advise the owner and family present that they have a "short" (fifteen minutes or so) time to vacate the premises. The wife starts crying, the kids are screaming and it gets ugly. Emotions are at their highest. You follow (for the safety of the deputies) the residents through their house and "allow" them to pack a few bags before they are "escorted" out of the house and off the property. Sometimes even the vehicles are seized as a result of default thereby making the owners and family leave on foot. A latch and lock bolts are attached to the doors and notices are posted that the house is now available for "Sheriff’s Sale".
This is real life reenactment of what we do. It's dirty, disgusting and shameful. How can this happen you may ask yourself? Let me tell you. Your local municipality and school district elected officials are often incompetent and lack any business experience and/or training. They levy tax after tax after tax on "improvements" that your "representatives" see fit for the "good" of the community. New and "improved" multimillion dollar schools and township buildings are built resulting in "needed additional taxes". These ever increasing taxes are levied on top of your already high taxes. The two working parent/partner property owners struggle to pay these taxes BUT now the working, retired, disabled or low wage earning family just can't keep up. They are unable to pay these excessive taxes and go into default. Additional fines and penalties are assessed, further aggravating the situation. Eventually a court action is levied by the county against the owner and the property is seized (sometimes by force and arrest). YES, BY THE SHOW OF OR ACTUAL PHYSICAL FORCE AND ARREST!
Now is the time to stop this abuse. Restructure the way we are assessed taxes and save the homes of hard working, retired and disabled property owners in Pennsylvania. Have the Deputy Sheriffs do what we do best and that is Law Enforcement, not tax collectors and evictors! Remember, our country seceded from the British rule but not without an ugly price. History is reliving itself. Remember the revolution. Is it necessary to come to that? It may be.
****
This letter starkly illustrates the horrific abuse to which good, decent, law-abiding homeowners of Pennsylvania are being subjected; they are treated like criminals simply because they can no longer afford to pay tribute to their government and schools through inequitable and subjective property taxes. Perhaps we should find a way to make every Harrisburg politician who opposes property tax elimination ride with a deputy on one of these seizures to see firsthand the devastation that is caused by their inaction and selfish political games.
I sent you these stories today to emphasize the need for us to do everything possible to end this injustice. We knew from the beginning that the road to property tax elimination would be long and difficult and that fighting the entrenched, corrupt political establishment would be a struggle. But no matter how weary or discouraged we may become, WE CANNOT GIVE UP! The politicians depend on the taxpayers to have short memories and little patience and they will continue to give us the runaround in the hope that we will give up and go away. We must demonstrate to them that we will not yield until they have returned to us what is rightfully ours: To be secure in our homes and property.
For the cause,
David Baldinger
PTCC Administrator
www.ptcc.us
Dear Friends,
Today’s update contains a few notes of interest and two stories that will probably infuriate you and will strongly emphasize the need to continue our efforts for property tax elimination.
- There’s not much to report about the reintroduction of the School Property Tax Elimination Act (SPTEA). Although no definite date has been set, we’re expecting an introduction of the bill before the end of April. I’ll send an update immediately when we know more.
- Most people who are paying a mortgage have their property tax bills sent directly to their mortgage holder and a property tax escrow amount is included in their monthly payment. When they receive their annual escrow analysis that includes an increase in their monthly payment, many of these folks just consider this a part of doing business and are unaware of the total amount of taxes paid. When you ask folks to support the SPTEA, please tell them to look at their total property tax bill to see how much they can save if school taxes are totally eliminated.
- A PTCC subscriber sent me a response from Senate Majority Leader Dominic Pileggi (R-9) to a letter he wrote asking for the senator’s help in enacting the SPTEA. Senator Pileggi’s reply contained more than a page of useless rhetoric followed by his endorsement of slots money for property tax “relief” (more about this below). From the tone of his letter, it is pretty obvious that Senator Pileggi has no interest whatsoever in tackling the elimination property taxes. This is unfortunate since he, as Majority Leader, has the power to determine the flow of legislation in the senate. All of you, and especially those in his district, might want to send Senator Pileggi a letter advising him of your displeasure at his inaction on this issue. dpileggi@pasen.gov
- The Pennsylvania Coalition of Taxpayer Associations (PCTA) is pleased to announce the addition of the 31st taxpayer group to the alliance. The Wyoming County Concerned Taxpayers joined us earlier in March in support of the SPTEA and we’re excited to have them as part of our coalition. Welcome! If you’re a resident of Wyoming County, please consider joining this very active and focused group. Contact information is available on the PTCC website under the “About the PCTA” tab. If you’ve considered starting a taxpayer group in your area and need help, contact any PCTA member group for assistance.
- Just one more short item: Each month we lose a few PTCC subscribers because they’ve changed their e-mail address or internet service provider. If your e-mail address changes, please send a brief note with the old and new addresses so you will continue to receive the updates.
Now for the stories …
- - - - - - - - - - - - - - - - - - - -
No property tax relief this year?
In the March 23 edition of the Harrisburg Patriot-News, reporter Sharon Smith wrote an article
By law, the property tax relief fund must reach a trigger level of $570 million by April 15 before the state can distribute any “relief”. A spokesperson for the Governor’s Budget Office indicated that revenue through the end of February will total about $505 million, leaving a $65 million shortfall to be made up by the certification date. Average monthly relief revenue is about $46 million, so it is very possible that the trigger level will not be reached. Even if it is, the amount of relief will be even less than the minimal amount that was distributed last year.
This has a number of very ugly consequences, especially for those who live in modest homes in school districts where last year’s relief was greatest. Here’s a quick example that was calculated by a finance expert who is a member of our coalition:
Last year’s property tax relief in the York School District was $525. The total gross school property tax on a home assessed at approximately $34,000 was $1,000, leaving that homeowner with a $475 net tax bill after the reduction. If there is no property tax relief this year, this homeowner will have to pay the full $1,000 - a tax increase of 110% over last year’s bill, and this assumes that there will be no increase in this year’s school property taxes. If the York SD increases taxes to the 6.5% Act 1 limit, this homeowner will pay $1065, a tax increase of 124% over last year!
Using the same math, a York SD home that is assessed at the $55,000 average for the district would see a 57.3% increase.
But it can get even worse.
The immediate impact could be much more than what you’d think if a person's real estate taxes are escrowed. Using the average assessed home value above as an example, the property tax could go up about $600, which means the mortgage company will likely be that much "short" when they make the tax payment this summer. First, they'll have to make up the shortfall for this year by adding $50+ to your monthly payment. Second, they'll raise the escrow at least another $50+ per month for next year's bill so they aren't behind in the escrow again next year. The potential result? A double-whammy of about $1,200, or $100 per month. This could vary depending on how far under or over you are with your current escrow balance.
In short, look for little to no “relief” this year and the real possibility of some pain compared to last year.
This is the sad result of the “substantial” property tax relief that was promised to us by the governor and the lawmakers who were the rabid proponents of legalized gambling. Do you still believe that legalizing slot machines was about property tax relief? Can you believe that they are still insisting that this is the answer to the property tax crisis? All of the bogus property tax “relief” plans that have been, and continue to be, foisted on us are motivated by nothing more than worthless, self-serving politics that has no regard whatsoever for the taxpayers.
- - - - - - - - - - - - - - - - - - - -
A Deputy Sheriff speaks out!
It is estimated that about 10,000 homes are sold at sheriff’s sale each year in Pennsylvania. Even though that number in itself is shocking, few of us know the truly revolting details of how this is done.
In January I received a letter from a deputy sheriff that described the process of evicting a family whose home is being sold at a sheriff’s sale. While I have no reason to doubt the letter’s accuracy, I nonetheless submitted it to a deputy in a different area of the state who verified that the facts are correct. Here’s the letter:
****
From:
Date: Jan 19, 2009
Subject: A Deputy Sheriff's View of Property Tax Seizures
Dear David,
I have to write you this note because of disgust I have with the excessive taxes and the ugly result that is happening to our property owners in Pennsylvania.
I am a Deputy Sheriff in Pennsylvania. One of the duties of our job is to serve foreclosure notices and conduct physical evictions on property owners. Imagine having someone knock on your door up to 10:00 P.M. in the evening. You answer the door and are faced with two or more Deputy Sheriffs in full uniform with a marked sheriff’s car outside. The local police may already been notified in the event of a "problem". The neighbors may be watching. One of the deputies presents you with a court order stating that you are being evicted from your home due to unpaid property taxes. This process may already taken a year or so before coming to this tragic end, but the property owner knows it's coming. The property owner reacts with fear, uncertainty, anger and shame.
You advise the owner and family present that they have a "short" (fifteen minutes or so) time to vacate the premises. The wife starts crying, the kids are screaming and it gets ugly. Emotions are at their highest. You follow (for the safety of the deputies) the residents through their house and "allow" them to pack a few bags before they are "escorted" out of the house and off the property. Sometimes even the vehicles are seized as a result of default thereby making the owners and family leave on foot. A latch and lock bolts are attached to the doors and notices are posted that the house is now available for "Sheriff’s Sale".
This is real life reenactment of what we do. It's dirty, disgusting and shameful. How can this happen you may ask yourself? Let me tell you. Your local municipality and school district elected officials are often incompetent and lack any business experience and/or training. They levy tax after tax after tax on "improvements" that your "representatives" see fit for the "good" of the community. New and "improved" multimillion dollar schools and township buildings are built resulting in "needed additional taxes". These ever increasing taxes are levied on top of your already high taxes. The two working parent/partner property owners struggle to pay these taxes BUT now the working, retired, disabled or low wage earning family just can't keep up. They are unable to pay these excessive taxes and go into default. Additional fines and penalties are assessed, further aggravating the situation. Eventually a court action is levied by the county against the owner and the property is seized (sometimes by force and arrest). YES, BY THE SHOW OF OR ACTUAL PHYSICAL FORCE AND ARREST!
Now is the time to stop this abuse. Restructure the way we are assessed taxes and save the homes of hard working, retired and disabled property owners in Pennsylvania. Have the Deputy Sheriffs do what we do best and that is Law Enforcement, not tax collectors and evictors! Remember, our country seceded from the British rule but not without an ugly price. History is reliving itself. Remember the revolution. Is it necessary to come to that? It may be.
****
This letter starkly illustrates the horrific abuse to which good, decent, law-abiding homeowners of Pennsylvania are being subjected; they are treated like criminals simply because they can no longer afford to pay tribute to their government and schools through inequitable and subjective property taxes. Perhaps we should find a way to make every Harrisburg politician who opposes property tax elimination ride with a deputy on one of these seizures to see firsthand the devastation that is caused by their inaction and selfish political games.
I sent you these stories today to emphasize the need for us to do everything possible to end this injustice. We knew from the beginning that the road to property tax elimination would be long and difficult and that fighting the entrenched, corrupt political establishment would be a struggle. But no matter how weary or discouraged we may become, WE CANNOT GIVE UP! The politicians depend on the taxpayers to have short memories and little patience and they will continue to give us the runaround in the hope that we will give up and go away. We must demonstrate to them that we will not yield until they have returned to us what is rightfully ours: To be secure in our homes and property.
For the cause,
David Baldinger
PTCC Administrator
www.ptcc.us
A Letter From the Speaker
13 February 2009
A letter from the Speaker
Dear Friends,
In January we reported about a recent commentary in the Wilkes-Barre Times-Leader where Luzerne County Representative Todd Eachus, the new majority leader, said: “The state House of Representatives is under new management and has new priorities, and the people of Pennsylvania will determine those priorities.”
But, alas, the more things change, the more they stay the same.
In the last update we suggested that you write to Representative Eachus and Representative Keith McCall, the new House Speaker, to request that they support school property tax elimination. Many of you did this and a few of you sent Speaker McCall’s form letter reply to me. Copied below is his letter, followed by my comments.
From: "Wegert, Debbie"
To:
Date: Wed, 4 Feb 2009
Subject: property tax
Rep. McCall asked that I forward the following response to your inquiry.
Thank you for your e-mail about the need for property tax relief. I am very aware of how property taxes have impacted homeowners across the Commonwealth.
Last session, the Pennsylvania House of Representatives took preliminary, yet solid, steps toward property tax reform. Of particular note, the House passed House Bill 1947 of the 2007-08 Legislative Session, which was a constitutional amendment that would allow for the elimination of school property taxes on primary homes and farms. This type of legislation is considered a key procedural effort to constitutionally allow Pennsylvania to fund a 100 percent exemption rather than what the constitution currently provides – fifty percent of the median assessed value, which ranges from a ten to twenty five percent reduction. Without this enabling language, all other efforts to fully relieve Pennsylvanians of school property taxes would be futile. This legislation will be reintroduced in the very near future.
The House also debated proposals that provided for the complete elimination of property taxes. Complete elimination is the ultimate goal; however, the Commonwealth needs to fill a potential $15 billion dollar hole when those taxes are abolished. There is no secret formula to fill the funding gap to pay for schools without implementing a tax shift or new taxes. We must work together to fill this funding gap.
As the General Assembly begins the 2009-10 Legislative Session, my colleagues and I will be tasked with addressing a myriad of issues such as education, health care, alternative energy and property tax reform all while tackling a growing state budget deficit. I do not expect the sluggish economy to change overnight; however, I do remain optimistic for our future. In regards to property tax reform, in such difficult economic times, the legislature needs to consider what the average taxpayer can afford to pay in order to fill such a possible funding gap with the elimination of property taxes.
The issue of trying to provide tax relief during a recession is certainly complex in nature and the legislature is giving its due diligence. The legislature is preparing to begin a dialogue on property tax reform and the constitutional amendment will probably be the first order of business. Your comments will be kept in mind as the discussion unfolds.
Please rest assured that I am cognizant of how rising property taxes, a national mortgage crisis, and a weak national economy coupled with a growing state deficit and rising prices are hitting hard-working families where it hurts. Please know that I strive to lessen the burden on Pennsylvania taxpayers, including providing property tax relief, and will continue my efforts on behalf of all Pennsylvanians.
Again, thank you for writing. I truly appreciate your feedback on this important issue.
Sincerely,
KEITH R. McCALL
The Speaker
122nd Legislative District
Apparently Speaker McCall thinks we’re all pretty stupid and that we’re going to simply accept his letter as gospel. Here are the facts:
His first statement sets the tone for the rest of the letter: “the Pennsylvania House of Representatives took preliminary, yet solid, steps toward property tax reform.” Sure they did. The full House worked a total of TWO days on property tax issues during the entire two years of the 2007-2008 legislative session. When HB 1600, the worthless “relief” bill championed by Speaker McCall’s caucus leadership, went down in flames, his leaders panicked and immediately sent all pending property tax bills to the Finance Committee where they remained until they died at the end of the session in November. Solid steps, indeed!
Next, he boasts about House Bill 1947, legislation that died in the Senate. This bill was sponsored by Representative David Levdansky, one of the most vocal opponents of school property tax elimination. This immediately makes the bill's intent suspect.
HB 1947 was an amendment to change the uniformity clause of the PA Constitution, which states that taxes cannot be levied unequally on entities within the same taxing body. The bill's purpose was to allow different tax rates for homesteads and businesses. But the devil is in the details.
HB 1947 would ALLOW a 100% homestead exemption from property taxes but in itself would not mandate or guarantee total elimination; the reduction allowed could be any amount up to 100%. Further, HB 1947 by itself did NOTHING - it would require further enabling legislation in the future to have any effect whatsoever. There was no assurance that this would ever happen.
In short, HB 1947 was simply more political deception to try to make taxpayers believe that the legislature was actually doing something about property taxes.
Now Speaker McCall wants to reintroduce the bill this session. Because a Constitutional amendment requires passage by two succeeding sessions of the General Assembly, a difficult task by itself, plus a voter referendum, the absolute earliest that the bill could become law is 2011, although this could occur much later. Only then would enabling legislation be considered. This is a great way to delay property tax elimination indefinitely.
Despite Speaker McCall's statement that without this legislation “all other efforts… would be futile”, the School Property Tax Elimination Act is written in such a manner that it can become effective IMMEDIATELY upon passage WITHOUT the need to first pass an amendment like HB 1947. This statement from Speaker McCall is totally disingenuous.
In the next paragraph, Speaker McCall states that $15 billion is required to fill the gap left from elimination. This is completely false unless he is talking about ALL property taxes, including county and municipal, but this has not been the immediate goal of our efforts and he knows this.
The total of homestead/farmstead SCHOOL property taxes to be eliminated by the School Property Tax Elimination Act is about $7 billion; the total for all school property taxes, including businesses, is about $11 billion. Neither amount approaches the $15 billion stated by Speaker McCall. This is simply more deception to support his opposition to elimination.
In the same paragraph Speaker McCall says there is no way to fill the funding gap without a tax shift. What’s his point? Although he makes this sound objectionable, we all know that elimination will require a shift to other taxes; the goal is to shift to taxes that are more equitable than the property tax. Most Pennsylvania homeowners support a tax shift as long as school property taxes are ELIMINATED.
In his third paragraph he wails about difficult economic times and "what the average taxpayer can afford to pay" to eliminate the school property tax. Which is better, a few hundred dollars in sales tax or thousands of dollars in school property tax? Which is better, a few hundred dollars in sales tax or losing your home? This is a baseless argument that is yet another example of making excuses to avoid dealing with the issue.
Next, Speaker McCall whines about the property tax issue being "complex in nature". Without a doubt this is true, but no more so than the enactment of a massive gambling law that was passed in the middle of the night with no public input and little chance for rank-and-file legislators to review the language. Complex laws CAN be quickly enacted if the courage, leadership, and will to do so are present. Unfortunately, these virtues are embraced by few members of the General Assembly, with many who prefer lies, deceit and cowardice to true statesmanship. The taxpayers of Pennsylvania are left to suffer from their inaction and lack of integrity.
Finally, Speaker McCall says he will strive for property tax "relief". The homeowners of Pennsylvania have had enough fraudulent, ill-conceived "relief" schemes that are simply tax increases in disguise. We want total ELIMINATION! Apparently Speaker McCall either just doesn't get it or is callously ignoring the plight of Pennsylvania homeowners.
Speaker McCall’s letter is typical of the kind of trash we've been fed during the past thirty years, so it appears that nothing has changed despite the House majority leadership’s promise of "new management and new priorities".
Please consider forwarding today’s update to friends, family, and co-workers. One way to help end this kind of chicanery is to expose the politicians’ dishonesty and hypocrisy to as many folks as possible.
If you wish, you can also write to Speaker McCall and to your Pennsylvania Representative and Senator to let them know your reaction to Speaker McCall’s letter. Speaker McCall’s contact information is below; you can find your legislators’ information from the “Find Your Legislators” link on the left side of any PTCC web page. Please send any responses to me for comment if you’d care to do so.
Hon. Keith R. McCall
162 West Ridge Street
Lansford, PA 18232
(570) 645-7585
Fax: (570) 645-9526
E-mail: kmccall@pahouse.net
It's easy to become discouraged by letters like Speaker McCall’s, but don't let it happen. This kind of attempted deception simply makes me more resolute and I hope that it will do the same for you. We cannot allow the self-serving, unethical politicians to trample our rights and we must keep up the fight. As one PTCC subscriber wrote to me: “Sometimes it makes me wonder just how stupid the politicians in Harrisburg think we taxpayers are. Most of us are able to see through the maze of deception that they try to snow us with. WE ARE NOT GOING AWAY."
To all of you, please hang in there and do what you can to help the cause. If we stick together we can beat the underhanded schemes of the politicians who oppose property tax elimination and we WILL get this done.
- - - - - - - - - - - - - - - - - - - - - - - -
One more brief note: Please check out the new “How Can I Help” page on the PTCC website at www.ptcc.us. There you’ll find lots of good suggestions on how to work for school property tax elimination.
As always, my heartfelt thanks go out to all of you who are working to support this effort. Your help is greatly appreciated.
Please feel free to write with comments or suggestions.
David Baldinger
PTCC Administrator
pataxpayers@gmail.com
A letter from the Speaker
Dear Friends,
In January we reported about a recent commentary in the Wilkes-Barre Times-Leader where Luzerne County Representative Todd Eachus, the new majority leader, said: “The state House of Representatives is under new management and has new priorities, and the people of Pennsylvania will determine those priorities.”
But, alas, the more things change, the more they stay the same.
In the last update we suggested that you write to Representative Eachus and Representative Keith McCall, the new House Speaker, to request that they support school property tax elimination. Many of you did this and a few of you sent Speaker McCall’s form letter reply to me. Copied below is his letter, followed by my comments.
From: "Wegert, Debbie"
To:
Date: Wed, 4 Feb 2009
Subject: property tax
Rep. McCall asked that I forward the following response to your inquiry.
Thank you for your e-mail about the need for property tax relief. I am very aware of how property taxes have impacted homeowners across the Commonwealth.
Last session, the Pennsylvania House of Representatives took preliminary, yet solid, steps toward property tax reform. Of particular note, the House passed House Bill 1947 of the 2007-08 Legislative Session, which was a constitutional amendment that would allow for the elimination of school property taxes on primary homes and farms. This type of legislation is considered a key procedural effort to constitutionally allow Pennsylvania to fund a 100 percent exemption rather than what the constitution currently provides – fifty percent of the median assessed value, which ranges from a ten to twenty five percent reduction. Without this enabling language, all other efforts to fully relieve Pennsylvanians of school property taxes would be futile. This legislation will be reintroduced in the very near future.
The House also debated proposals that provided for the complete elimination of property taxes. Complete elimination is the ultimate goal; however, the Commonwealth needs to fill a potential $15 billion dollar hole when those taxes are abolished. There is no secret formula to fill the funding gap to pay for schools without implementing a tax shift or new taxes. We must work together to fill this funding gap.
As the General Assembly begins the 2009-10 Legislative Session, my colleagues and I will be tasked with addressing a myriad of issues such as education, health care, alternative energy and property tax reform all while tackling a growing state budget deficit. I do not expect the sluggish economy to change overnight; however, I do remain optimistic for our future. In regards to property tax reform, in such difficult economic times, the legislature needs to consider what the average taxpayer can afford to pay in order to fill such a possible funding gap with the elimination of property taxes.
The issue of trying to provide tax relief during a recession is certainly complex in nature and the legislature is giving its due diligence. The legislature is preparing to begin a dialogue on property tax reform and the constitutional amendment will probably be the first order of business. Your comments will be kept in mind as the discussion unfolds.
Please rest assured that I am cognizant of how rising property taxes, a national mortgage crisis, and a weak national economy coupled with a growing state deficit and rising prices are hitting hard-working families where it hurts. Please know that I strive to lessen the burden on Pennsylvania taxpayers, including providing property tax relief, and will continue my efforts on behalf of all Pennsylvanians.
Again, thank you for writing. I truly appreciate your feedback on this important issue.
Sincerely,
KEITH R. McCALL
The Speaker
122nd Legislative District
Apparently Speaker McCall thinks we’re all pretty stupid and that we’re going to simply accept his letter as gospel. Here are the facts:
His first statement sets the tone for the rest of the letter: “the Pennsylvania House of Representatives took preliminary, yet solid, steps toward property tax reform.” Sure they did. The full House worked a total of TWO days on property tax issues during the entire two years of the 2007-2008 legislative session. When HB 1600, the worthless “relief” bill championed by Speaker McCall’s caucus leadership, went down in flames, his leaders panicked and immediately sent all pending property tax bills to the Finance Committee where they remained until they died at the end of the session in November. Solid steps, indeed!
Next, he boasts about House Bill 1947, legislation that died in the Senate. This bill was sponsored by Representative David Levdansky, one of the most vocal opponents of school property tax elimination. This immediately makes the bill's intent suspect.
HB 1947 was an amendment to change the uniformity clause of the PA Constitution, which states that taxes cannot be levied unequally on entities within the same taxing body. The bill's purpose was to allow different tax rates for homesteads and businesses. But the devil is in the details.
HB 1947 would ALLOW a 100% homestead exemption from property taxes but in itself would not mandate or guarantee total elimination; the reduction allowed could be any amount up to 100%. Further, HB 1947 by itself did NOTHING - it would require further enabling legislation in the future to have any effect whatsoever. There was no assurance that this would ever happen.
In short, HB 1947 was simply more political deception to try to make taxpayers believe that the legislature was actually doing something about property taxes.
Now Speaker McCall wants to reintroduce the bill this session. Because a Constitutional amendment requires passage by two succeeding sessions of the General Assembly, a difficult task by itself, plus a voter referendum, the absolute earliest that the bill could become law is 2011, although this could occur much later. Only then would enabling legislation be considered. This is a great way to delay property tax elimination indefinitely.
Despite Speaker McCall's statement that without this legislation “all other efforts… would be futile”, the School Property Tax Elimination Act is written in such a manner that it can become effective IMMEDIATELY upon passage WITHOUT the need to first pass an amendment like HB 1947. This statement from Speaker McCall is totally disingenuous.
In the next paragraph, Speaker McCall states that $15 billion is required to fill the gap left from elimination. This is completely false unless he is talking about ALL property taxes, including county and municipal, but this has not been the immediate goal of our efforts and he knows this.
The total of homestead/farmstead SCHOOL property taxes to be eliminated by the School Property Tax Elimination Act is about $7 billion; the total for all school property taxes, including businesses, is about $11 billion. Neither amount approaches the $15 billion stated by Speaker McCall. This is simply more deception to support his opposition to elimination.
In the same paragraph Speaker McCall says there is no way to fill the funding gap without a tax shift. What’s his point? Although he makes this sound objectionable, we all know that elimination will require a shift to other taxes; the goal is to shift to taxes that are more equitable than the property tax. Most Pennsylvania homeowners support a tax shift as long as school property taxes are ELIMINATED.
In his third paragraph he wails about difficult economic times and "what the average taxpayer can afford to pay" to eliminate the school property tax. Which is better, a few hundred dollars in sales tax or thousands of dollars in school property tax? Which is better, a few hundred dollars in sales tax or losing your home? This is a baseless argument that is yet another example of making excuses to avoid dealing with the issue.
Next, Speaker McCall whines about the property tax issue being "complex in nature". Without a doubt this is true, but no more so than the enactment of a massive gambling law that was passed in the middle of the night with no public input and little chance for rank-and-file legislators to review the language. Complex laws CAN be quickly enacted if the courage, leadership, and will to do so are present. Unfortunately, these virtues are embraced by few members of the General Assembly, with many who prefer lies, deceit and cowardice to true statesmanship. The taxpayers of Pennsylvania are left to suffer from their inaction and lack of integrity.
Finally, Speaker McCall says he will strive for property tax "relief". The homeowners of Pennsylvania have had enough fraudulent, ill-conceived "relief" schemes that are simply tax increases in disguise. We want total ELIMINATION! Apparently Speaker McCall either just doesn't get it or is callously ignoring the plight of Pennsylvania homeowners.
Speaker McCall’s letter is typical of the kind of trash we've been fed during the past thirty years, so it appears that nothing has changed despite the House majority leadership’s promise of "new management and new priorities".
Please consider forwarding today’s update to friends, family, and co-workers. One way to help end this kind of chicanery is to expose the politicians’ dishonesty and hypocrisy to as many folks as possible.
If you wish, you can also write to Speaker McCall and to your Pennsylvania Representative and Senator to let them know your reaction to Speaker McCall’s letter. Speaker McCall’s contact information is below; you can find your legislators’ information from the “Find Your Legislators” link on the left side of any PTCC web page. Please send any responses to me for comment if you’d care to do so.
Hon. Keith R. McCall
162 West Ridge Street
Lansford, PA 18232
(570) 645-7585
Fax: (570) 645-9526
E-mail: kmccall@pahouse.net
It's easy to become discouraged by letters like Speaker McCall’s, but don't let it happen. This kind of attempted deception simply makes me more resolute and I hope that it will do the same for you. We cannot allow the self-serving, unethical politicians to trample our rights and we must keep up the fight. As one PTCC subscriber wrote to me: “Sometimes it makes me wonder just how stupid the politicians in Harrisburg think we taxpayers are. Most of us are able to see through the maze of deception that they try to snow us with. WE ARE NOT GOING AWAY."
To all of you, please hang in there and do what you can to help the cause. If we stick together we can beat the underhanded schemes of the politicians who oppose property tax elimination and we WILL get this done.
- - - - - - - - - - - - - - - - - - - - - - - -
One more brief note: Please check out the new “How Can I Help” page on the PTCC website at www.ptcc.us. There you’ll find lots of good suggestions on how to work for school property tax elimination.
As always, my heartfelt thanks go out to all of you who are working to support this effort. Your help is greatly appreciated.
Please feel free to write with comments or suggestions.
David Baldinger
PTCC Administrator
pataxpayers@gmail.com
Update - The New Legislature
09 January 2009
Dear Friends,
Happy New Year to all!
Today’s update will not have a great deal of information; we’re in a holding pattern because of the new session of the General Assembly but I’ll tell you as much as we know right now.
The 2009-2010 session of the Pennsylvania Senate will convene on January 20 and the House of Representatives will convene on January 26.
We know that the School Property Tax Elimination Act (SPTEA) will be re-introduced in the House early in this session, although we do not yet have a date. Because all pending legislation expired with the close of the last legislative session on November 30, the re-introduced SPTEA may have a bill number other than the HB 1275 used in the 2007-2008 session. I’ll send more details immediately when they become available.
We also know that Senator Mike Folmer (R-48) will be introducing a similar or possibly identical bill in the Senate, something that has never occurred before. This is terrific news, since it will give us the opportunity to work for property tax elimination in both houses of the General Assembly.
The Pennsylvania Coalition of Taxpayer Associations (PCTA), our statewide umbrella group, has begun planning based on current information and I’ll share our plans in a future update after they’ve been firmed up a bit.
Property taxes look like a hot issue for this session and it appears that a number of competing bills may also be introduced. It’s a certainty that many of them will be more of the same fake "relief" like last session’s HB 1600 and we're going to have to be very discriminating when deciding what to support. Our only sure winner right now is the SPTEA.
In the meantime, we can get an early start with the new legislature.
The Democrats retained control of the House with a 104-99 majority, so they will control the flow of legislation this session. We can begin 2009 by respectfully requesting that the new House majority leadership team make school property tax elimination a priority.
In a recent commentary in the Wilkes-Barre Times-Leader, Luzerne County Representative Todd Eachus, the new majority leader, said: “The state House of Representatives is under new management and has new priorities, and the people of Pennsylvania will determine those priorities.”
We’ll assume that Representative Eachus is being sincere, so it’s important that everyone please write or call him and new House Speaker Keith McCall to let them know our foremost priority: The complete ELIMINATION of school property taxes! The contact information to make this request to these leaders is below.
For those of you in Northeast Pennsylvania, it’s especially important for you to make your voices heard since these two lawmakers are from your area and are sensitive to your demands. Because of the hard work of CAPTaxes, the PCTA taxpayer advocacy group in Luzerne County, combined with the large number of homeowners in the Northeast supporting elimination due to the recent botched Luzerne County reassessment, we have a unique opportunity for folks in your area to make a big difference.
Good people have suffered for far too long while some of our lawmakers waste time playing shallow, self-serving political games. It is time for those who have opposed elimination to disavow the special interests, reject the petty politics, and do what is right for the people of Pennsylvania. Nothing less than TOTAL ELIMINATION is acceptable and no excuses can be tolerated.
Speaker of the House
Hon. Keith R. McCall
162 West Ridge Street
Lansford, PA 18232
(570) 645-7585
Fax: (570) 645-9526
E-mail: kmccall@pahouse.net
Majority Floor Leader
Hon. Todd A. Eachus
100 West Broad St.
Suite #107
Hazleton, PA 18201
(570) 450-7905
Fax: (570) 459-3946
E-mail: teachus@pahouse.net
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Because of the current economic situation the property tax issue has become even more critical. Foreclosures and tax sales have greatly increased and more folks than ever are losing their homes.
On January 4th, the Sunday Reading Eagle contained a pull-out section listing properties in Berks County that will be sold at sheriff’s sale this month. The supplement was similar in appearance to a supermarket flyer; it had a full color graphic at the top, a picture of the sheriff and a sheriff’s badge, a few pictures of attractive homes, and four nine-column pages of homes that will be auctioned. How many of these homes could have been saved if school property taxes and the resulting monthly escrow payments were eliminated?
I was particularly outraged by this piece because it was presented in such a blatantly commercial manner even though each listing represents the devastation of a family’s life. Does this indicate how callous the government has become about seizing our homes and destroying our dreams?
We have gone well beyond the problem of exorbitant and unfair property taxes to a more basic violation of our Constitutional rights: The right to be secure in one’s property. The right to possess and use one’s own private property was recognized by the framers of our Constitution and in our founding government documents as one of the foremost of our inalienable, inviolable, rights.
John Adams declared: “Property must be secured or liberty cannot exist.” James Madison said: “Government is instituted to protect property… This being the end of government, that alone is a just government which impartially secures to every man whatever is his own.”
Despite the intent of our founding fathers to guarantee that we are to be secure in our property, our government can simply confiscate our homes at will to satisfy a subjective and inequitable tax. This must end! Property taxes must be eliminated NOW and the sacrosanct right to be secure in our property restored.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Just one more note: Thanks to the efforts of all of you we have built tremendous momentum over the past few years but we need to continue to build if we are to reach our goal. Please ask your family, friends, neighbors - everyone you know – to join in this cause by visiting the PTCC website at www.ptcc.us to learn about the SPTEA and to subscribe to the PTCC e-mail updates. In a grassroots effort such as ours, every voice counts!
Please accept my sincere gratitude to all of you for your ongoing help and support – it is greatly appreciated. NOW LET’S WORK TOGETHER TO GET THIS DONE!
Please write to me at pataxpayers@gmail.com with questions or comments.
David Baldinger
PTCC Administrator
Dear Friends,
Happy New Year to all!
Today’s update will not have a great deal of information; we’re in a holding pattern because of the new session of the General Assembly but I’ll tell you as much as we know right now.
The 2009-2010 session of the Pennsylvania Senate will convene on January 20 and the House of Representatives will convene on January 26.
We know that the School Property Tax Elimination Act (SPTEA) will be re-introduced in the House early in this session, although we do not yet have a date. Because all pending legislation expired with the close of the last legislative session on November 30, the re-introduced SPTEA may have a bill number other than the HB 1275 used in the 2007-2008 session. I’ll send more details immediately when they become available.
We also know that Senator Mike Folmer (R-48) will be introducing a similar or possibly identical bill in the Senate, something that has never occurred before. This is terrific news, since it will give us the opportunity to work for property tax elimination in both houses of the General Assembly.
The Pennsylvania Coalition of Taxpayer Associations (PCTA), our statewide umbrella group, has begun planning based on current information and I’ll share our plans in a future update after they’ve been firmed up a bit.
Property taxes look like a hot issue for this session and it appears that a number of competing bills may also be introduced. It’s a certainty that many of them will be more of the same fake "relief" like last session’s HB 1600 and we're going to have to be very discriminating when deciding what to support. Our only sure winner right now is the SPTEA.
In the meantime, we can get an early start with the new legislature.
The Democrats retained control of the House with a 104-99 majority, so they will control the flow of legislation this session. We can begin 2009 by respectfully requesting that the new House majority leadership team make school property tax elimination a priority.
In a recent commentary in the Wilkes-Barre Times-Leader, Luzerne County Representative Todd Eachus, the new majority leader, said: “The state House of Representatives is under new management and has new priorities, and the people of Pennsylvania will determine those priorities.”
We’ll assume that Representative Eachus is being sincere, so it’s important that everyone please write or call him and new House Speaker Keith McCall to let them know our foremost priority: The complete ELIMINATION of school property taxes! The contact information to make this request to these leaders is below.
For those of you in Northeast Pennsylvania, it’s especially important for you to make your voices heard since these two lawmakers are from your area and are sensitive to your demands. Because of the hard work of CAPTaxes, the PCTA taxpayer advocacy group in Luzerne County, combined with the large number of homeowners in the Northeast supporting elimination due to the recent botched Luzerne County reassessment, we have a unique opportunity for folks in your area to make a big difference.
Good people have suffered for far too long while some of our lawmakers waste time playing shallow, self-serving political games. It is time for those who have opposed elimination to disavow the special interests, reject the petty politics, and do what is right for the people of Pennsylvania. Nothing less than TOTAL ELIMINATION is acceptable and no excuses can be tolerated.
Speaker of the House
Hon. Keith R. McCall
162 West Ridge Street
Lansford, PA 18232
(570) 645-7585
Fax: (570) 645-9526
E-mail: kmccall@pahouse.net
Majority Floor Leader
Hon. Todd A. Eachus
100 West Broad St.
Suite #107
Hazleton, PA 18201
(570) 450-7905
Fax: (570) 459-3946
E-mail: teachus@pahouse.net
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Because of the current economic situation the property tax issue has become even more critical. Foreclosures and tax sales have greatly increased and more folks than ever are losing their homes.
On January 4th, the Sunday Reading Eagle contained a pull-out section listing properties in Berks County that will be sold at sheriff’s sale this month. The supplement was similar in appearance to a supermarket flyer; it had a full color graphic at the top, a picture of the sheriff and a sheriff’s badge, a few pictures of attractive homes, and four nine-column pages of homes that will be auctioned. How many of these homes could have been saved if school property taxes and the resulting monthly escrow payments were eliminated?
I was particularly outraged by this piece because it was presented in such a blatantly commercial manner even though each listing represents the devastation of a family’s life. Does this indicate how callous the government has become about seizing our homes and destroying our dreams?
We have gone well beyond the problem of exorbitant and unfair property taxes to a more basic violation of our Constitutional rights: The right to be secure in one’s property. The right to possess and use one’s own private property was recognized by the framers of our Constitution and in our founding government documents as one of the foremost of our inalienable, inviolable, rights.
John Adams declared: “Property must be secured or liberty cannot exist.” James Madison said: “Government is instituted to protect property… This being the end of government, that alone is a just government which impartially secures to every man whatever is his own.”
Despite the intent of our founding fathers to guarantee that we are to be secure in our property, our government can simply confiscate our homes at will to satisfy a subjective and inequitable tax. This must end! Property taxes must be eliminated NOW and the sacrosanct right to be secure in our property restored.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Just one more note: Thanks to the efforts of all of you we have built tremendous momentum over the past few years but we need to continue to build if we are to reach our goal. Please ask your family, friends, neighbors - everyone you know – to join in this cause by visiting the PTCC website at www.ptcc.us to learn about the SPTEA and to subscribe to the PTCC e-mail updates. In a grassroots effort such as ours, every voice counts!
Please accept my sincere gratitude to all of you for your ongoing help and support – it is greatly appreciated. NOW LET’S WORK TOGETHER TO GET THIS DONE!
Please write to me at pataxpayers@gmail.com with questions or comments.
David Baldinger
PTCC Administrator
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