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FOR IMMEDIATE RELEASE
November 15, 2005

Senator Browne details tax freeze measure
Measure would cap bills for low-income property owners

Speaking before a Special Session Committee on Legislation, state Senator Pat Browne, R-16th District, today (November 15) detailed his legislation that would provide a property tax freeze for low-income Pennsylvanians.

Under Senator Browne's legislation, Special Session Senate Bill 28, the Department of Revenue would work with local school districts to help low-income property owners under a system patterned after the state Personal Income Tax Forgiveness Program.

"As the General Assembly has proceeded with the Special Session on tax reform, we have heard the merits of a number of proposals that would provide property tax relief," Senator Browne said. "However, Senate Bill 28 is somewhat different from the previous bills because it is directly based on income and uses an established benchmark for determining who would be eligible for assistance."

The Personal Income Tax Forgiveness Program is based on a graduated scale of relief that factors in income and family size. The tax relief under the system starts at 100 percent for the neediest families and decreases in 10-percent increments for those with somewhat higher incomes.

The income limits for each level were increased for families with more dependent children. All told, the Department of Revenue estimates that one of every four households in the Commonwealth qualified for relief through the Personal Income Tax Forgiveness Program.

"Using the information filed by individual taxpayers, the Department of Revenue would provide funding to school districts to allow for direct relief from property tax increases for low-income families," Senator Browne said. "The legislation effectively institutes a school property tax freeze for eligible claimants by reimbursing such individuals for school property tax increases."

Under Senator Browne's bill, those who qualify for Personal Income Tax Forgiveness would be eligible to receive the same percentage of relief from any increase in their property taxes, up to a yearly maximum payment of $500.

Contact:

Matt Moyer
(610) 821-8468