Lawmakers unveil bill to end school property tax

HARRISBURG, Pa. (WHTM) – A group of Pennsylvania lawmakers has reintroduced legislation to replace school property taxes with increases in the state’s personal income and sales taxes.

Senate Bill 76 would increase to the Personal Income Tax from 3.07 percent to 4.95 percent. The Sales and Use Tax would increase from 6 to 7 percent, and it would be expanded to cover more goods and services that are currently exempt, such as groceries.

School districts would continue to collect the property tax until June 30, 2017. After that, districts would receive quarterly reimbursements from the State Treasury.

The districts could locally increase the Personal Income Tax or Earned Income Tax if voters in the district approve in a ballot referendum.

The Senate rejected a similar proposal in 2015.

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