Published Friday, March 19, 1999 Local taxpayers shouldn't have to wait so long to exercise their new petition power on behalf of school-tax reform, says a state senator involved with the issue.
Due mainly to the reluctance of local school boards to take action, efforts to reduce local property taxes have yet to get off the ground in many sections of Pennsylvania. But Sen. Jim Gerlach, R-Chester, has sponsored legislation to get around that by revising the 1998 school property-tax reform act.
Gerlach's bill would allow local taxpayers to start petitioning this summer for changes in the local tax structure rather than having to wait until the summer of 2000 as the law provides. His bill is before the Senate Appropriations Committee and could come up for a floor vote this spring after the state budget is enacted.
Gerlach is no stranger to local tax issues. He chaired the statewide committee that stumped for passage of a constitutional amendment on property taxes in November 1997; he was a key sponsor of the tax-reform law enacted last May.
The main goal of local tax reform is to help schools reduce their reliance on property taxes by implementing a homestead exemption. The exemption would exclude up to 50 percent of the value of an individual's main residence from taxation. To replace lost revenue, schools would levy earned income taxes.
But so far, only about a half-dozen school districts across Pennsylvania, including Mercer, have taken the necessary steps to begin the process of revamping their local tax structure by appointing a tax-study commission. Perhaps up to 50, or one-tenth of the 501 school districts, have indicated some interest in studying the idea either formally or informally at some future date. School officials aren't shy about explaining why they haven't moved promptly to implement a homestead exemption. They are concerned about their ability to collect adequate revenues from the new tax options and generally dislike the requirement in the law for local referendums on future tax hikes.
The law gives local taxpayers an option if a school board doesn't intend to form a study commission and put a tax-change plan on the ballot. They can circulate petitions to require the board to appoint the commission. They would need signatures from 2 percent of the electorate to accomplish this. If the commission recommended a tax overhaul at this stage and the school board refused to act, the taxpayers could launch a second petition to get a referendum scheduled.
School boards have until June 2000 to schedule a referendum before this petition right is granted local taxpayers. But Gerlach's bill would shorten the grace period by one year, thus activating the petition option this June.
The main complaint from constituents about the 1998 law is that school boards won't act on it, said Gerlach aide Mark Meyer.
Gerlach's bill would also require that school districts, rather than counties, mail applications for homestead exemption applications to each resident within 30 days after the board approves an exemption.
This provision is designed to settle some of the confusion surrounding the current requirement that counties handle the application forms.
