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School property tax collections in Pennsylvania this fiscal year likely will amount to $13 to $14 billion.
That’s a lot of textbooks, technology, pensions and salaries that need to be funded.
There yet another movement afoot this legislative session to eliminate that school property tax and replace it with increases in the state income tax and state sales tax.
The reasoning is that the school property tax is just too big of a hit on local real estate owners, in many cases the largest bill they pay in a given year. Many of the people paying that bill - often upward of $2,000 or more - are elderly and on fixed incomes. Many of the people paying that bill do not have children in the school system where they live. Many of the people paying that bill are sending their children to an alternative to the public school system and believe they are being unfairly double taxed for that choice.
So there’s an understandable logic to this proposal. People who would be paying the proposed income tax hike from 3.07 percent to 4.95 percent are, in fact, working, so they are in the best position to have money taken out of their paycheck. People who would be paying the proposed sales tax hike from 6 percent to 7 percent are, in fact, purchasing something, so the reasoning is they are in the best position to pay the increased taxes.
But as the bill’s sponsor, Sen. David Argall, a Rush Township Republican, admits, the devil is in the details.
The proposal includes elimination of sales tax exemptions of clothing, groceries and other items that would increase the cash register impact on people and businesses who might not be in a good position to handle the increase.
While the legislation is set up to replace the $14 billion now collected from school property taxes in Pennsylvania, what happens when school district budgets go up - and they will - in future years?
How will the funds be distributed to assure fairness to all school districts when differences in state allocations to rural and relatively poorer school districts already are an annual issue?
It’s a dreaded day when the school property tax bill shows up in the mail, so exploring alternatives to at least lessen the blow on our elderly and those who don’t even have kids in school is worthwhile. But the discussion has to be undertaken with eyes wide open and caution.