From PA Chamber of Business & Industry
The state’s Independent Fiscal Office unveiled a new report this week showing the amount of additional state dollars that would be necessary to implement and sustain a so-called property tax reform bill. The analysis concluded that nearly $12 billion would be needed up front, which is $2 billion less than the previous estimate; but also showed that this amount would need to grow by hundreds of millions more than previously estimated – between $800 million to $900 million each year. As it did in the earlier report, the IFO again assumed an estimated $530 million from gaming revenue will be dedicated to the property tax relief effort.
The PA Chamber remains opposed to this tax shift measure that relies on fluctuating revenue streams (sales and personal income taxes) to replace the steady, reliable funding that property taxes have provided for generations. The property tax legislation that a small but vocal group of advocates are promoting would have an especially negative impact on renters, small businesses and young families who would see a new sales tax placed on many everyday essentials like diapers and daycare.
The Joint Governmental Affairs Committee of the Columbia Montour Chamber and the Visitors Bureau will be evaluating the legislation once it is introduced.