Property owners across one local lawmaker’s district want to see
additional cuts in property taxes, but aren’t sure exactly how to
do it.
On Thursday, Senate President Pro Tempore Joe Scarnati,
R-Brockway, said a property tax questionnaire he’s been circulating
to residents across his district has garnered a relatively good
response.
Scarnati said, thus far, his office has received 2,800 responses
back; there were 20,000 questionnaires sent out.
“That’s very good, believe it or not,” Scarnati said, adding the
issue will be brought up again during this legislative session.
The questionnaire features two basic questions concerning real
estate property taxes and limiting state spending. Under the real
estate question, residents are asked to respond to which method of
property tax reduction they would most like to see, including
either raising the state sales tax – from 6 to 7 percent – or
personal income tax by .43 percent.
The results have been mixed, according to Scarnati, adding the
percentage of responses all fall under 50 percent.
“There is no overwhelming majority of anybody supporting any one
concept,” Scarnati said.
That is not the case when it comes to state spending – 95
percent of the respondents to the questionnaire support spending
restraints on state government.
“The government spends too much money and the voters are tired
of it,” Scarnati said.
Bills have been introduced in the Senate and House to limit
state spending to the rate of inflation. The legislation does
contain exemptions for emergencies or disasters and provides for
the General Assembly to vote for increases greater than the
inflation rate in limited unforeseen circumstances.
On Wednesday, The Associated Press reported the cost to run the
General Assembly increased by nearly 9 percent during the last
fiscal year. According to figures, the Legislature spent $308
million in fiscal year 2005-06, with hikes reported in both the
Senate and House.
“High taxes have stifled our ability in Pennsylvania to operate
correctly,” Scarnati said.
Last year, Scarnati voted in favor of the current property tax
reduction plan, which calls for slashing property taxes by using
projected slot machine revenues. As part of the legislation, school
districts across the region have been voting on how to hike local
earned income taxes. Voters will then head to the polls in May to
decide if they want such a shift in taxes.
“While I supported the current property tax reduction plan, it’s
basically for seniors,” Scarnati said, referring to a measure in
the plan that more than doubles the income eligibility limit for
homeowners in the state’s Property Tax/Rent Rebate Program and
hikes the number of seniors eligible for the program. It also hiked
the maximum rebate.
“The gambling dollars will come in 2008, but the relief will be
such a small amount for the Joe and Mary Smiths and their family of
four that we need to go further,” Scarnati said. “I’m not letting
this go. We have to find a way to go further and get property taxes
under control.
“This survey tells me pretty clearly that the respondents
understand it is a shift in taxes. We have to cut costs in the
school districts and state government and get better control of our
dollars. That’s the key.”
In his upcoming budget address, Gov. Ed Rendell is expected to
call for a 1 percent sales tax increase.
“This (property tax reduction) won’t be done easy and we need to
do it right,” Scarnati said. “People are very much divided on the
way they want to go. They will really have to decide for themselves
whether they will be a winner or loser under the system when they
go into vote this spring.”