The report says the measure to slowly say goodbye to school property taxes and hello to higher tax rates on personal income and purchases doesn’t leave enough money for the state’s school districts.
Schools would lose over $1 billion under the plan, as written, says the Independent Fiscal Office.
No problem, says the bill’s sponsor, Republican state Representative Jim Cox of Berks County.
He says the rates just need tweaking to make the plan feasible.
“It’s going to likely be an increase in the PIT, is what I’m going to recommend to fill any gap that exists,” he said. PIT refers to the personal income tax rate.
The IFO report finds increases to that, as well as the state sales tax, means retired homeowners could see a 37 percent drop in their tax burden, while working renters would see about a ten percent increase.
The chairman of a state House committee focused on property tax reform said, “realistically,” an amended piece of legislation won’t be ready until next year.