A recent gubernatorial debate held this past weekend in Pittsburgh offered a chance for four candidates vying for their party’s nomination to answer questions on important matters of state policy.  One question they were asked, according to a newspaper account, was what they would do about school property taxes.

Their answers show that there is not a overarching view of the way forward amongst the candidates.  School property taxes from all types of property raised $12.5 billion for K-12 schools in 2015-16 across the state based on Department of Education data.  The article places the total at $16 billion, obviously reflecting a more recent year.

One candidate would be for total elimination for homestead property.  This would be along the lines of a 100% homestead exclusion that we wrote about recently and which passed on a Constitutional ballot question enabling the General Assembly to write legislation allowing local taxing authorities to have homestead exclusions.  If it were just for schools, as indicated by the debate question, the combination of gaming money and higher taxes on income or sales would have to provide the money.

Another candidate would be in favor of total elimination for all property.  Again, this would require a tax shift and sounds along the lines of the Property Tax Independence Act.  This proposal would end school property taxes altogether for all types of real estate, not just homesteads.

Another candidate would not be for total elimination, so that could mean homestead exclusions but not just at 100 percent or it could mean for residential property but not for others.

Another candidate would not be in favor of a statewide tax shift to have income and sales tax money come to the state capital, so this might be closer to an approach once advocated by the Optional Property Tax Elimination Act.

Almost four years ago we noted ” Only time will tell if school property tax reform happens and what it will look like.”  Just as true today.