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Pennsylvania Senate defeats tax overhaul plan
Gov. Tom Wolf responds reporters' questions after speaking at a Pennsylvania Press Club luncheon Monday, Nov. 23, 2015 in Harrisburg, Pa. Wolf urged Republican lawmakers to support a proposed deal to swap a state sales tax increase for $1.4 billion in school property tax cuts for homeowners . Republicans say they disagree with Wolf over which school districts should benefit most from the rebates. (AP Photo/Marc Levy)
HARRISBURG — The Senate on Monday narrowly defeated a proposal aimed at eliminating school property taxes with a shift to higher income and sales taxes covering items from “cradle to the grave.”
“We owe the taxpayers of Pennsylvania a sincere apology,” said Sen. David Argall, R-Schuylkill County, who sponsored the “Property Tax Independence Act” as an amendment. The apology is needed for “forcing schools since 1834 to rely on the unfair, archaic property tax,” he said. “We can eliminate this hated tax.” It hits senior citizens on fixed incomes hardest, he argued.
The measure, which called for a historic change in taxation, produced a 24-24 tie vote with Lt. Gov. Mike Stack, the presiding officer and a Democrat, casting the deciding vote in opposition. The lieutenant governor votes in the case of a tie.
Sen. Scott Wagner, R-York County, warned his colleagues “there's no free lunch” and replacing property taxes would require raising $12 billion to $14 billion in other revenue. Wagner still voted for it.
Gov. Tom Wolf told reporters earlier he would not sign the bill.
The proposal before the Senate called for increasing the state income tax from 3.07 percent to 4.95 percent. It would have increased the state sales tax by 1 percentage point and expanded the items and services taxed, including most food, candy and gum; clothing that costs more than $50 per garment; newspapers and magazines; caskets; flags; and alcohol served at drinking establishments.
It covered goods and services from “cradle to the grave,” said Sen. Pat Vance, R-Cumberland County.
“Many people seem to believe property taxes will go away entirely — not true,” Vance said. School districts with bonded debt would have maintained property taxes at some level, she said, and 412 of 500 school districts have debt.
The proposal was backed by a wide array of local taxpayer and Tea Party groups. But the bill was opposed by a diverse group of organizations including the Pennsylvania Bar Association, the Pennsylvania Food Merchants Association, the Pennsylvania Chamber of Business and Industry, the Pennsylvania School Boards Association, The Public Interest Law Center and the Pennsylvania NewsMedia Association.
Brad Bumsted is Trib Total Media's state Capitol reporter.
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