Property Tax Elimination

    • Eliminates the collection of some school property taxes, except that portion of a school district’s budget that is currently funding debt. The debt portion of the school district budget remains payable by taxpayers through a property tax. (Municipal and county taxes remain fully collectible.)
    • Increases personal income tax from 3.07% to 4.95%.
    • Increases sales tax rate from 6.0% to 7.0% and expands the list of taxable items.
    • Funds for property tax replacement are distributed from a new state fund. The annual distribution for each school district is based on its receipts in the prior year plus a cost-of-living increase (if applicable). Cost-of-living increase is the lesser of the percentage increase in the (1) statewide average weekly wage or (2) sales tax.
    • Any new debt incurred by a school district would require voter approval.
    • Any increase above the State disbursement would require voter approval.
     
        
    Resources:
    Senator Argall's website (co-sponsor of Property Tax Independence Act, 2015)
     
     
      
    Video Series: Understanding Proposed Property Tax Legislation in PA
     
    Video Series
     
    In collaboration with the Pennsylvania Associate of School Business Officials (PASBO), the Great Valley School District is pleased to present a four-part informational series about the proposed property tax elimination legislation. To see the videos in this series, please the graphic above.
     
     
     
    Letter from the Superintendent of Schools
     
    Dear Great Valley Community Members,
     
    In the past, the Great Valley School District has communicated with you about potential legislation that could affect our schools. This letter shares information about an issue that is expected to go before both chambers of the General Assembly (in particular the Senate), as soon as next week. That issue is property tax elimination.
     
    At first glance, the idea of property tax elimination probably sounds appealing to many taxpayers. However, the proposal under consideration presents many concerns for schools, local businesses, and many constituents within our district and across the Commonwealth. While the legislation promotes the elimination of property tax, the property tax you pay toward a district’s debt service is still taxable. Therefore, many across the state – primarily residents whose school districts hold large amounts of debt –  would still pay a majority of the property tax they currently pay. In addition, because the proposed legislation promises to replace property taxes with increased personal income tax and an increased sales and usage tax, those same people may actually be paying more per year than they currently do. While the Great Valley School Board agrees that property tax reform should be a priority for our Commonwealth, the legislation currently proposed lacks any real plan for implementation and leaves districts with many questions about the availability of funding and the true impact on our constituents and our educational program.
     
    We are happy to provide a sample letter that we are urging our community to send to local legislators. The addresses of those legislators who represent Great Valley is also posted on our website. Below you will also find two FAQ sheets that address impacts of the proposed legislation on both school communities and general taxpayers.
     
    Last session, a school property tax elimination bill was narrowly defeated in the Senate by a single vote. This session, we are told that there is sufficient support in the Senate for the legislation to pass. If passed, this legislation would affect communities and schools across the Commonwealth on July 1 of THIS year. Please consider writing to your legislator to encourage legislation that more effectively and thoroughly addresses property tax reform and to vote “no” to the current proposal. Thank you for your support of public education, and, more specifically, for your support of Great Valley schools. As always, we remain committed to partnering with you to ensure the best education we can for all of our students.
     
    Sincerely,
    Regina Speaker Palubinsky, Ed.D. 
    Superintendent of Schools