Two local lawmakers believe further steps need to be taken to
bring true property tax relief to the residents of northcentral
Pennsylvania.

On Thursday, the Senate passed legislation which provides a
minimum 35 percent reduction in property taxes and calls for voters
to decide in the 2006 primary election whether to reduce school
property taxes by raising local earned income taxes.

Senate Bill 30 would also double the size of the state’s
Property Tax and Rent Rebate program – increasing payments by $131
million and enabling 281,000 additional low income seniors to
receive tax relief.

While both Sen. Joe Scarnati, R-Brockway, and Rep. Martin
Causer, R-Turtlepoint, believe there are some good aspects to the
legislation, both legislators said more needs to be done.

“This has been a very deliberate, thoughtful process we’ve
embarked on through the fall,” Scarnati said Thursday, “but we need
to go further yet. One property tax plan that works for all of
Pennsylvania is an awfully hard thing to do.

“I’m not totally happy with what passed the Senate today, but it
provides a good foundation for a start.”

According to the bill, property owners could realize the 35
percent break through the Homestead Exclusion starting next year.
It also offers a back end referendum for school districts wanting
to hike tax rates beyond the inflation rate.

“We (legislators) all have unique issues in our school
districts,” Scarnati said. “But, we’ve got to control school
spending – the taxpayer, property owner and voter have had enough
from the federal government right on down to the local school
board.”

Scarnati – who voted in favor of Senate Bill 30 – said the
referendum will go a long way towards spending control.

“We need to go back and find a consensus,” Scarnati said.
“Certainly in the school districts in my area, being able to go out
and have an increase in the earned income tax, that is an option.
But, we can’t get enough tax relief from that. Therefore, we need
to find new dollars or shift dollars at the statewide level in
order to bring more dollars home.”

The lawmaker said other plans that have gone through the Senate
include broadening or increasing the sales tax or raising the
personal income tax.

“This process is far from over,” Scarnati said, adding he was
concerned about where the House was going to end up in its
deliberations in conjunction with the Senate and what would be
forwarded to Gov. Ed Rendell for his signature.

Causer said there was a sense in the House Thursday that the
Senate bill doesn’t go far enough.

“While I believe it’s legislation that is definitely worth
looking at, hopefully we can do a little better than that,” Causer
said. “Whatever we do, there has to be a tax shift. I would prefer
the shift to take place at the state level, but that doesn’t mean I
won’t support a local shift.

“There is no question we have to get something done with this.
Property tax reform is one of the biggest issues we are dealing
with and we have to make sure it’s done right.”

According to Causer, while there are several plans still
floating around the Legislature, it will ultimately take both
chambers and Rendell to come together to find a permanent fix.

“The governor has been very silent and hasn’t gotten involved in
this so far,” Causer said. “He came out the other day and said we
shouldn’t consider any other plans until we look at his plan
first.”

Causer said Rendell’s plan mandates all school districts to
participate in Act 72 – which uses slot machine revenue to fund
school districts. “It was brought up for a vote in the House and
was overwhelmingly defeated. I guess the message it sends the
governor is we still have some work to do and that we need him to
sit down at the table with us.”

Both legislators said while the capitol is essentially closing
down for the holiday break, there is a chance both chambers could
be back in session next week for more debate on the issue.