Pennsylvanians won?t see property tax reform under a tax swap plan any time soon, though the issue isn?t dead.
The House Finance Committee voted today to table a reform of the school property tax system that would have increased income and sales taxes.
While Rep. Jim Cox, R-Berks County, the sponsor of the bill, and other supporters argued that the bill would make the state?s tax system more fair, its detractors said the bill raised too many questions.
The bill would reduce school property taxes but not immediately end them. Instead, they would last in a reduced form until school districts paid off current debt. Property owners would still see tax bills for their local municipality and county governments.
Statewide, sales taxes would go up one percent, to seven percent in most areas, eight percent in Pittsburgh and nine percent in Philadelphia.
Committee members raised concerns over the revenue, which was projected by the state Department of Revenue to be about $800 million short of the $10 billion needed to replace property taxes.
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