Wednesday, June 14, 2006
Another Plan for Property Tax Reform
Two GOP state Senators have released their plan to ease the burden of property taxes in Pennsylvania. The crux of their plan is to expand the scope of the sales tax to include items that are currently exempt. While specific details are not yet available as to which items would be taxed, this plan will appeal to those who favor tax shifting to real reform.
However, unlike many of the tax shifting plans that have sprung up over the last few years, this one contains real protection for property taxpayers—namely a “super back-end referendum” on any school spending increases. Those who live in Allegheny County understand all too well the burden that school districts have placed on residents with their unabated spending increases. Teachers hold districts hostage with strikes and school boards give in to keep the peace while taxpayers see larger bills. The only recourse for taxpayers has been to vote out school board members, who are usually replaced with others who keep the cycle going.
Previous attempts at property tax reform have included referendum clauses, but they were very weak and contained so many loopholes as to render the requirements useless. Without a strong referendum process in place, whatever property tax shifting scheme is thought up by legislators will quickly become inadequate, as school expenditures will continue to climb.
Forcing accountability upon the district and its board, which can be achieved with a comprehensive referendum requirement, is a great start. However, it is only part of the remedy. The right to strike for teachers must also be eliminated. Furthermore, if lawmakers want to rein in school district spending, they must not impose mandates unless they come with complete state funding. These three changes will go a long way to reducing school property taxes and restoring order to a property tax system long out of control.
However, unlike many of the tax shifting plans that have sprung up over the last few years, this one contains real protection for property taxpayers—namely a “super back-end referendum” on any school spending increases. Those who live in Allegheny County understand all too well the burden that school districts have placed on residents with their unabated spending increases. Teachers hold districts hostage with strikes and school boards give in to keep the peace while taxpayers see larger bills. The only recourse for taxpayers has been to vote out school board members, who are usually replaced with others who keep the cycle going.
Previous attempts at property tax reform have included referendum clauses, but they were very weak and contained so many loopholes as to render the requirements useless. Without a strong referendum process in place, whatever property tax shifting scheme is thought up by legislators will quickly become inadequate, as school expenditures will continue to climb.
Forcing accountability upon the district and its board, which can be achieved with a comprehensive referendum requirement, is a great start. However, it is only part of the remedy. The right to strike for teachers must also be eliminated. Furthermore, if lawmakers want to rein in school district spending, they must not impose mandates unless they come with complete state funding. These three changes will go a long way to reducing school property taxes and restoring order to a property tax system long out of control.
