Chris Pastore

Upper Dublin, PA

HB/SB 1776: The Property Tax Independence Act

In Pennsylvania, House Bill 1776 is under consideration which effective would remove the School property tax for home owners in Pennsylvania and replace that with increased income tax and sales tax. The income tax is intended to increase from the current 3.07% up to a new 4.34%. Sales tax would increase from 6% to 7% and the list of things subject to taxes will increase. The proposal will continue to keep clothing that costs less than $50 and food that is on the WIC list tax free.

Someone living on a fixed income will most likely derive the greatest benefit from this. School taxes go up pretty much every year, and fixed income does not.

It’s hard to make a good estimate of whether you personally will financially benefit or not from this change, but there is an estimator page here:

http://www.ptcc.us/pfpfcalc.htm

The plan intends to maintain school district funding at the same level they currently have.

There is no PA income tax for individuals earning less than $35,000 per year.

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