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Property Tax Relief for Pennsylvania The 2009-10 Budget Will Provide Nearly $787 Million in Continued Property Tax Relief
Pennsylvania will become even more competitive in 2009-10 through the continuation of last year’s historic reduction in the amount of property tax paid by each Pennsylvania homeowner. This budget marks the second year of long-anticipated property tax relief, which is designed to provide the greatest benefit for those communities with weak tax bases and high tax burdens, so they can increase their competitive edge.
Continuing Property Tax Relief for All Pennsylvania Homeowners
The 2009-10 budget marks the second year of historic property tax relief for all Pennsylvania homeowners. The Taxpayer Relief Act – signed into law in 2006 – has already eliminated school property taxes for more than 113,000 senior citizens. In the coming year, Pennsylvania homeowners, on average, will continue to receive nearly $200 in state-funded property tax relief – with even more savings for older adults who have the most urgent need.
The 2009-10 budget provides nearly $787 million in property tax relief, including $612.9 million in broad-based property tax relief and $143.4 million in property tax and rent rebates for Pennsylvania’s senior citizens. When fully in place, this tax reform will cut property taxes by more than $1 billion each year.
• In 2009-10, the $612.9 million in broad-based property tax cuts will translate to an average of nearly $200 for every Pennsylvania household. Instead of reducing property taxes, Philadelphia’s share of funding for broad-based tax relief will be used to reduce the city’s wage tax, which is a greater barrier to economic growth in Philadelphia. The Taxpayer Relief Act also allows Scranton to use a portion of its tax relief funds to cut that school district’s wage tax, the highest of all Pennsylvania school districts.
• The Property Tax/Rent Rebate program will provide $143.4 million in property tax and rent rebates for 624,000 of Pennsylvania’s senior citizens earning less than $35,000 a year. This program funds tax relief for 412,000 homeowners and 212,000 renters. These older Pennsylvanians will receive additional property tax relief through the broad-based property tax relief eligible to all homeowners.
• In addition, senior citizens who pay a significant portion of their income in property taxes or who live in high property-tax areas will receive additional targeted property tax relief totaling $30.6 million in 2009-10. Pennsylvania’s favorable business and tax climate, along with property tax reductions that are the direct result of the successful implementation of expanded legalized gaming, puts the commonwealth in a strong position to attract and retain jobs. And the Governor’s plan for Protecting Our Progress ensures that the economic gains Pennsylvania has made over the last six years will not be lost in the face of the current national economic challenges.
Source: Pennsylvaia State Budget _in_Brief from the PA state website, http://pa.gov/portal/server.pt/community/pa_gov/2966
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