Gebhard, Mastriano Introduce Constitutional Amendment to Eliminate School Property Taxes - Senator Mastriano

Gebhard, Mastriano Introduce Constitutional Amendment to Eliminate School Property Taxes - Senator Mastriano: Continuing to fight for Pennsylvania homeowners who are struggling to keep their homes due to increasing school property taxes, Sen. Chris Gebhard (R-48) and Sen. Doug Mastriano (R-33) have introduced a constitutional amendment to eliminate the burdensome tax.

Guest Column: What is wrong with a property tax?

The right to personal property sets the United States apart from other nations. Outside the United States, the rights to property have long been subject to the realm of kings and queens — a feudal society of sorts.

There is a tremendous anger surfacing due to the relentless loss of property and our government’s explosive spending binge. Ravenous government spending mortgages ourselves, our children, and our property to an unrelenting assault by a government which is out of control.

The major negatives with property taxes relates to these very issues:

• Property taxes are fixed expense with no regard to the person’s ability to pay.

• One’s property serves as collateral for potential unlimited government spending.

• Taxes on property value reduce the incentive to maintain property

• The regressive nature of the property tax makes home ownership that much more elusive for much of the population.

Taxes on property have been debated incessantly for decades. What started out as an “innocent” means of raising taxes has blossomed into a perceived unlimited source of funds by which government can make promises of future benefits to a select few to the detriment of the remainder of us. Property owners have the choice of either paying the taxes dictated for them by politicians or risk losing their property through foreclosure and tax sale.

Contrary to popular belief, the property tax system started in the United States dates at the time of the founding of our nation. At that time however, it is important to remember the historical context in that only the gifted few owned property. Only property owners at the time of the founding of our nation were permitted to vote.

The evolution of our republic has allowed the opportunity for owning property and of voting rights to expand to most of the population. As such, the antiquated notion of the property tax may negatively impact the very people who are now just beginning to enjoy the American dream evolving in the great experiment of the United States.

The negative impact of a property tax system is that your property serves as collateral for government promises. Ever increasing property taxes have allowed municipal governments and schools to make promises that they could not possibly keep if they did not have such a reservoir of potential funds at their disposal.

These “promises” have precipitated a record number of bankruptcy filings of municipalities since 2010. The settlement of these bankruptcies will most certainly raise the level of debate of property taxes to unparalleled heights. The outcome of this battle will most decidedly determine whether or not American citizens have the right to own property.

With the rapid rise in property taxes needed by most jurisdictions to cover their promises and with lower pay and higher unemployment of taxpayers throughout the nation, the property tax is now forcing millions of Americans to reassess where they live, how they live, and if they can ever retire let alone own their home.

The U. S. Constitution addresses and protects property rights in so many ways: Source: “The Constitution and Property Rights”

“The Founders were worried that Congress might use the tax system to loot property owners in some states for the advantage of other states. Accordingly, they required that direct taxes (mostly importantly property and income taxes) be apportioned among the states (Article I, Section 2, Clause 3 and Article I, Section 9, Clause 4).

They granted the federal courts jurisdiction over interstate land claims and interstate debts to limit the extent to which state courts could discriminate against the property rights of out-of-staters (III-2-1 and III-2-2).

They added the Full Faith and Credit Clause (IV-1) partly to require state courts to honor property records in other states.

The Founders gave Congress an unlimited power to dispose of public land (IV-3-2), but only limited power to acquire or hold land (I-8-17 and certain incidental powers). This was because they wanted most publicly-owned land to be transferred to the private sector.

They also inserted a number of other checks and balances, designed partly to protect minorities from unfair property confiscations.”

Today, threats to property, particularly your home, are at epic levels and the battle will shape the landscape of our nation forever.

The American dream of home ownership and the liberty inherent in property are at risk.

Ending property taxes will begin to restore the American dream to those most negatively affected by such an antiquated system as a property tax.

For those who are just getting involved, this article is the second in a series explaining the basis behind our property tax elimination bill. The other articles in this series can be found on our website at www.repfrankryan.com.

Frank Ryan, CPA, USMCR (Ret) represents the 101st District in the Pennsylvania House of Representatives. He is a retired Marine Reserve Colonel, a CPA and specializes in corporate restructuring. He has served on numerous boards of publicly traded and non-profit organizations. He can be reached at fryan1951@aol.com.

GUEST COLUMN: Time to eliminate property taxes in Pennsylvania

By Rep. Frank Ryan
Guest columnist

There have been discussions about eliminating property taxes for decades.

In November 2017, a constitutional amendment passed by substantial margin to allow for the elimination of property taxes. With that amendment, it would only be necessary for legislation to be enacted to rid the Commonwealth of this regressive tax.

The question then becomes what is the status of the bill to eliminate property taxes?

In December 2018, I circulated a co-sponsorship memo in the PA House for a bill which will eliminate property taxes 100% for all properties if enacted. The objective of the bill is simple — to eliminate all property taxes. The tricky part is the replacement tax.

That very simple statement will be the subject of eight detailed articles I intend to write explaining the issues in detail to solicit your feedback and to allow the best possible solution to come about as quickly as possible.

The eight articles will include:

1. Critical economic reasons for eliminating property taxes.

2. Problems with the existing property tax system.

3. Unfunded pension liabilities.

4. Funding formulas for school districts under current laws.

5. Property tax elimination and impact on senior citizens.

6. Property tax elimination and impact on working families.

7. Property tax elimination and impact on schools and teachers.

8. Proposed property tax elimination bill.

Eliminating the property tax is critical to the economic survival of the Commonwealth and our citizens!

In my 40+ years as a certified public accountant and expert in helping organizations avoid bankruptcy, I can think of no more complicated problem to the financial survival of the Commonwealth than eliminating property taxes.

The reason this is so complicated is because our current system of taxation and funding schools is so fundamentally flawed that even minor fixes to peripheral elements of the system may have significant unintended consequences.

For example, the funding formulas for the schools result in Palmyra Area School District receiving $1 Million less per year than it would receive under a newly enacted funding formula which will take almost 20 years to fully implement. This means that Palmyra School District must fund that shortfall from the state by either cutting spending and or with property tax increases.

The Independent Fiscal Office five year outlook provides an insight into Pennsylvania’s stagnant growth and substantial budget shortfalls over the next five years. When combined with declining population for citizens under age 60 and significantly increasing population for citizens over 65, the trends continue to be negative for the Commonwealth.

If we take decisive action now to reform our tax policies for working families, seniors, businesses, and school districts with the fundamental shift in the elimination of property taxes we can reverse these negative trends. I am extremely optimistic if we take the problem seriously.

Efforts in the past to eliminate property taxes have not been successful because of a whole bevy of reasons.

The primary reasons for the failure of prior efforts revolve around the following:

A. The proposed replacement taxes involve funds going to the Commonwealth rather than to local control.

B. The impact of property tax elimination on people who rent rather than own their homes.

C. The perceived lack of stability in school funding under the replacement formula.

D. The expansion of the sales tax base was a problematic for some powerful stakeholders.

E. The proposed replacement taxes were directed predominantly at working families.

The system that I am proposing will address these issues and provide for an orderly phase in so that the schools and the community are able to adapt to a new system with no major disruptions to the educational opportunities of our students.

I cannot emphasize enough how severe the problem is with property taxes. The funding formula itself which is a separate issue is equally problematic and leads to the difficulty in solving this problem. It is critical however that everyone understand that if we do not resolve this problem together the probability of surviving the next economic downturn is limited.

Our financial rescue plan that I proposed when I first got elected two years ago discusses all the efforts we need to turn around the finances in Pennsylvania. We are well on the way to enacting these bills and property tax elimination is a major component of it.

I look forward to your input and comments on the particles that we will be submitting and ask you to please get active in this and provide me the guidance that you feel needs to be included in any legislation. We cannot afford to make a mistake.

A copy of our financial rescue plan can be found at my website www.repfrankryan.com.

Frank Ryan, CPA, USMCR (Ret.) represents the 101st District in the Pennsylvania House of Representatives. He is a retired Marine Reserve Colonel, a CPA and specializes in corporate restructuring. He has served on numerous boards of publicly traded and non-profit organizations. He can be reached at FRYAN1951@aol.com

$540,701,000,000: U.S. Property Taxes Hit Record in 2016

$540,701,000,000: U.S. Property Taxes Hit Record in 2016: (CNSNews.com) —
Americans paid a record $540,701,000,000 in property taxes to state and
local governments in fiscal 2016, according to the U.S. Census
Bureau.That was up $16,748,620,000 — or about 3.2 percent — from $523,952,380,000 in property taxes (in constant 2016 dollars) that state and local governments collected in fiscal 2015.

Is your state lawmaker with us or against us?

 

Any Pennsylvania state legislator who does not support HB 76 to eliminate school property taxes should be tossed from office in 2014.

Guest Column: No Tax Should Have the Power to Leave You Homeless

By Pa. State Senator David G. Argall (R-29), Pa. State Senator Mike Folmer (R-48), Pa. State Senator Judy Schwank (D-11), Pa. State Senator John Yudichak (D-14)

Despite renewed special interest attacks at the capitol in Harrisburg, the fight for eliminating the unfair school property tax begun by 79 grassroots taxpayer groups across the state is making some real progress.

Across the 11 counties we represent, the number one question we hear at our town hall meetings is: When will the legislature eliminate school property taxes?

Last year, we introduced a similar proposal drafted by the Pennsylvania Coalition of Taxpayer Associations. The Senate Finance Committee held a public hearing on this proposal and we asked for a nonpartisan analysis of the bill to provide detailed funding projections. The Independent Fiscal Office (IFO) identified several problems in the original proposal. Special interest groups have used the report as a weapon against our efforts but we view it as a roadmap to achieve true property tax reform and we have moved quickly to amend the bill.

Last year's proposal garnered 13 co-sponsors, or 26 percent of the total state Senate.  This year’s proposal, Senate Bill 76, corrects the defects in the original bill, as detailed in the 80-page analysis provided by the IFO.  Even more importantly, as a result of the grassroots efforts of the Pennsylvania Coalition of Taxpayer Associations this year, 22 Senators have now co-sponsored the bill – 12 Republicans and 10 Democrats – an increase of 9 Senators from last year. We continue to forge new coalitions and pick up support from all corners of the state. Groups like the Western Pennsylvania Coalition of Taxpayers, the Wilkes-Barre City Taxpayers Association, and the South Eastern Tax Reform Coalition are leading the charge to eliminate this tax.

The Senate and House Finance Committees have asked the IFO to complete an updated analysis of Senate Bill 76 in the next few months. The issue of funding public schools is a $13 billion problem and we welcome their nonpartisan, professional analysis to ensure we provide a dollar-for-dollar match for basic education.

In the last few months, because of growing grassroots efforts across the state, support for the bill has grown from 13 to 22 State Senators. The number we need to achieve in the Senate is 26 votes for passage, and then it heads over to the House of Representatives, where we need 102 votes. Representatives Jim Cox and Mark Gillen have discussed this proposal with the Governor, and he is on the record with them stating he would sign the bill when it reaches his desk.

We look forward to continuing our bipartisan fight to advance this issue.  In our local newspapers, we frequently read about the thousands of sheriff’s sales that occur each year across the state. We hear this fundamental principle every day, from Marietta all the way to West Pittston: No tax should have the power to leave you homeless.

Time to educate Gov. Corbett on property taxes

I was disappointed yesterday to learn that Gov. Tom Corbett has not read House Bill 1776 (The Property Tax Independence Act), has not met with its prime sponsor, Rep. Jim Cox, and did not know enough about the bill to take a position on it. The elimination of school property taxes is the No. 1 issue facing Pennsylvania taxpayers ... and the governor better get up to speed on it quickly.

Corbett talks Pa. budget with regional editors, reporters

PA House Bill 1776 declares freedom from school property taxes

The new push to eliminate school property taxes in Pennsylvania needs support from voters.

From an editorial in The Pottstown Mercury:

The property tax reform legislation would benefit senior citizens and many lower- or fixed-income residents who struggle to pay increasing property taxes, but reform would also benefit public schools. The current system favors wealthier districts, forcing districts in poorer areas to raise taxes or cut programs to balance their budgets. The children of Pennsylvania stand to benefit from tax reform by spreading revenue for education more evenly across district lines. 

Read the full editorial at the newspaper's website.

Hundreds rally to end Pa. school property taxes

The May 7 rally is just the beginning of the hard work it's going to take to eliminate school property taxes in Pennsylvania. Every taxpayer must contact their state lawmakers and demand they support this common-sense reform.

Just remember that all 203 House seats and half of the 50 Senate seats are up for re-election this year. It's time the politicians did something for the people of Pennsylvania not just take care of themselves.

Hundreds rally to end Pa. school property taxes

Rep. Jim Cox: Property Tax Rally About the People

Lawmaker sponsors property tax elimination bill

Berks County State Rep. Jim Cox on why he introduced House Bill 1776, aka The Property Tax Independence Act:

“Many Pennsylvanians lose their homes and a lifetime’s work to sheriff’s sales each year because they can no longer afford to pay their property taxes. Senior citizens on fixed incomes are increasingly forced to sell their homes because of unrelenting increases in their tax burden.” 

Lawmaker sponsors property tax elimination bill

Bill Takes Big Step Forward in Property Tax Elimination

Constitutional amendment to help eliminate school property taxes passes PA House

Eliminating school property taxes is a complicated process and this bill introduced by Berks County state Rep. David Maloney is an important step.


PA State Rep. David Maloney's Property Tax Homestead Exemption Passes House

Newspaper: Berks Countians understand need for tax reform

From an editorial in The Pottstown Mercury:

A legislative forum was held Monday at Daniel Boone Middle School for discussion of tax proposals — a pretty dry topic for a pleasant summer night.

But the forum brought out a full house — nearly 400 people — to listen intently to proposals for tax reform that have been talked about in Harrisburg for 40 years.

Berks County residents demand Pennsylvania eliminate school property taxes. So what's wrong with the rest of the state?

Read the full editorial at the link below:

Berks Countians understand need for tax reform - pottsmerc.com

Rep. Maloney to Host Property Tax Town Hall Meeting

WHAT: State Rep. David Maloney (R-Berks) will host a town hall meeting to provide information on efforts to reduce and/or eliminate school property taxes. He has often referred to Berks County as "ground zero" in the property tax debate, and is holding this meeting to update constituents on the challenges facing the state Legislature in dealing with this issue.

WHO: Maloney will be joined by other members of the General Assembly, including the co-chairmen of the School Property Tax Relief Caucus, Reps. Jim Cox (R-Berks) and Seth Grove (R-York), as well as Reps. Mark Gillen (R-Berks), Tom Quigley (R-Montgomery), Marcie Toepel (R-Montgomery) and Doug Reichley (R-Berks/Lehigh).

WHEN: Monday, Aug. 29, 7 p.m.

WHERE: Daniel Boone Middle School auditorium, 1845 Weavertown Road, Douglassville.

LIVE WEBSTREAMING: The meeting may be viewed through Maloney's website, www.RepMaloney.com

Rep. Maloney to host property tax forum

State Rep. David M. Maloney (R-130th Dist.) will host a school property tax forum on Monday, Aug. 29, at the Daniel Boone Middle School Auditorium in Amity Township.

The event runs from 7 to 9 p.m. and is open to the public.

"I have long said that Berks County is "Ground Zero" for the debate over school property taxes. It is the issue I hear about most frequently from constituents," Maloney said in a press release announcing the forum.

From the release:

"Our agenda for Aug. 29th is to lay out to the public where we are at this point in time in the fight to reduce and eliminate school property taxes in Pennsylvania. Several of my State House colleagues and I will present the most current data we have and discuss the challenges we face in our 130th District and statewide."

State Reps. Seth Grove, R-York, and Jim Cox, R-Berks, who are both co-team leaders for the House Majority Policy Committee will be on hand as well as Reps. Doug Reichley R- Berks/Lehigh, Marcy Toepel, R-Montgomery, and Mark Gillen, R-Berks, who will all participate in the forum.

"We have a lot of information to put forward and we will talk about previous tax relief efforts like legalized gaming and Act 1," Maloney said. "We will talk about school district growth versus state funding over the last 10 years. At the end of the presentation we will take questions."

State lawmakers from Berks, Chester and Montgomery counties have been pushing for the elimination of school property taxes for years, Maloney noted.

"No two counties in Pennsylvania are alike as we all struggle with higher school property taxes," Maloney said. "In some parts of Pennsylvania, school property taxes are not an issue, but they are a problem here. We have information and numbers that most people have not seen and it looks at school property taxes on a statewide view. I felt it was necessary to share this data. There are hot spots in Pennsylvania where this is a serious concern. We in the southeast live in a hot spot."

"Part of my purpose for this event is to also tell people that we will continue to work to correct the problems with the school property tax system," Maloney said.

Lincoln Radio Journal: Property Tax Relief in PA

This week on Lincoln Radio Journal: Host Lowman Henry talks with David Baldinger of the Pennsylvania Coalition of Taxpayer Associations about the group's plan for eliminating school property taxes; Frank Gamrat and Eric Montarti of the Allegheny Institute discuss the economic impact of drilling in the Marcellus Shale region on The Allegheny Institute Report; and, Scott Paterno has an Uncomfortable Truth commentary on President Barack Obama's failure to lead. Visit www.lincolnradiojournal.com to find out were you can listen to the program in your area.

Taxpayer coalition backs Medaglia in PA 11th Senate Dist. race

The Pennsylvania Taxpayers Cyber Coalition, a statewide education finance reform alliance, has endorsed Republican Larry Medaglia in the March 15 special election for the 11th Senatorial District.

In making its endorsement, the PTCC pointed to Medaglia's "unequivocal support for the principles embodied in the previously introduced School Property Tax Elimination Act legislation that will abolish school property taxes for all Pennsylvania homeowners and restructure a crumbling, antiquated education finance system."

Medaglia has pledged to support renewed efforts to eliminate school property taxes if he is elected to the Legislature, the PTCC noted.

"For 30 years, the homeowners of Pennsylvania have been deceived time and time again by phony, unsound property tax relief schemes and false promises of property tax reform," said David Baldinger, spokesman for the PTCC. "Larry Medaglia has taken a definite stance on this vital issue with his pledge to work for the passage of legislation supported by the PTCC that will at last give legitimate, sustainable relief to the homeowners of Pennsylvania through total school property tax elimination."

The PTCC is a member of the Pennsylvania Coalition of Taxpayer Associations, an alliance of 50 grassroots taxpayer advocacy groups across Pennsylvania dedicated to the equitable education funding reform through the principles and mechanism of the School Property Tax Elimination Act.

For more about the PTCC, visit the group's website.

Property Tax Relief Under Ed Rendell

Tax Groups Back Rohrer For Governor

No surprise here. A coalition of nearly three dozen taxpayer groups has endorsed state Rep. Sam Rohrer, R-Berks, for governor of Pennsylvania.

Rohrer, who is seeking the Republican nomination for governor in 2010, has been the leading proponent of eliminating property taxes in Pennsylvania.

A member of the Legislature since 1993, Rohrer is the primary sponsor of House Bill 1275, the School Property Tax Elimination Act.

The Pennsylvania Coalition of Taxpayer Associations sees Rohrer's election as the best chance of killing the state's onerous school property tax.

From a press released issued by PCTA:

Rep. Rohrer has, through many legislative sessions, introduced the School Property Tax Elimination Act, legislation that would abolish school property taxes for all Pennsylvania homeowners and restructure a crumbling, antiquated education finance system. During the announcement of his candidacy on Nov. 17, Rep. Rohrer emphasized that school property tax elimination will be one of the five main planks of his campaign platform and a priority of his administration.

Rebecca Heller of The Patriot's Voice, one of the PCTA member groups, said, "Sam Rohrer is not just a candidate for Governor of Pennsylvania, he is a true statesman and patriot. Rep. Rohrer selflessly devoted many years of his life to work for the citizens in his district. I do not live in his district, but because of his initiatives, I have always felt he was "my" representative. His goals have always reached much further than district lines. We will work for Sam Rohrer as hard as he has always worked for us."

Joel Sears of the York County Taxpayers Council, a PCTA member group, added: "The first time I met Sam, I knew there was something special about him. He is a true servant of the public whose principles align him with the vast majority of Pennsylvanians, not just his constituents. His approach is tireless, independent of any special interest groups, and always focused on the 'rightness' of the outcome. I am proud and privileged to know Sam."

The Pennsylvania Coalition of Taxpayer Associations is an alliance of 35 grassroots taxpayer advocacy groups from across Pennsylvania that is dedicated to equitable education funding reform through the enactment of the School Property Tax Elimination Act. For more about PCTA's efforts, visit the group's Web site.

For more information on Rohrer's bid for for governor, visit his campaign Web site, www.samrohrer.org