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For Immediate
Release
6/4/09
Eichelberger To Introduce Alternative
County-Wide Tax Reform Plan
"Balanced
Options-Local Decisions Act"
Requires
dollar-for-dollar property tax reductions and revenue neutrality
Today, Senator John H. Eichelberger, Jr. (R-Blair)
announced his intention to introduce an alternative to the local sales tax plan
proposed by the Governor. Under his proposed "Balanced Options-Local Decisions"
Act, the voters could also select a new local tax structure which could include
a sales or income tax at the county level. However, in the Eichelberger plan,
all revenues would have to be used to reduce nuisance and property taxes, not
just the 60% in the Governor’s plan.
In order to transition from reliance on property tax, the
issue would first be studied in detail by a non-partisan commission comprised of
local residents that will look at the overall fiscal structure within the
county and its political subdivisions to maximize the benefits of the act to the
taxpayer. After the study, any proposal to transition tax structures would have
to be put before the voters at referendum.
The referendum process will require that voters be fully
informed of the impact on their tax burden of the proposal on the ballot. The
county and municipalities would have to first use the revenue to replace
revenues lost from elimination of nuisance taxes. The remainder must be used
for a dollar-for-dollar reduction in property taxes.
The plan provides several alternatives by which property
taxes can be reduced. The proposal may consist of a combination of several
options, to include: a reduction in millage rates; the homestead exemption; a
universal exemption; a flat tax per parcel; and establishment of tax freeze or
deferral programs. Also notable is that all current senior or low-income
exemptions and programs would stay in place.
According to Eichelberger, "This plan will provide
statutory options to local governments to replace existing taxes with better
alternatives which are tailored to the local situation, while keeping the
overall tax burden substantially the same."
Contact:
Lee Derr
(717) 787-5490
Additional Information:
Tax Relief
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