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From the BCCT.

$200 tax break for Pa. homeowners
Bucks County Courier Times

Pennsylvania homeowners will receive nearly $770 million in property tax relief in 2009 under the latest installment from the historic Taxpayer Relief Act, Gov. Ed Rendell announced Monday.

Almost 2.7 million households' taxes across the state were lowered last year because of gaming revenues and, this year, the average statewide reduction is expected to be nearly $200 again.

That's good news for some local school districts, including Bristol Township, officials said.

"If we are at, or near, what we had last year, I am happy about it," said that district's school board president, W. Earl Bruck. "It will be a big help to taxpayers. I'm encouraged by it."

All Pennsylvania homeowners in 66 counties can receive reductions in the school property tax bills they will receive this summer. The state Department of Education in early May will provide the final figures, which will vary by district depending on how many homeowners signed up for their share of relief.

Other Lower Bucks school administrators, though, said they're hoping the rebate increases.

"Since it is possible that people who had not signed up for the homestead/farmstead exemption previously have now signed up in the past year + the amount of rebate to a taxpayer could be less than last year as we divide our total amount among more taxpayers eligible for the tax relief," said Robert Schoch, director of business administration in Council Rock.

The 2006 Taxpayer Relief Act created the Property Tax Relief Fund as a way to use gaming revenue to reduce property taxes for homeowners, specifically seniors.

Approximately 110,000 Pennsylvania seniors will pay no school property taxes again this year because of the tax relief, and many more will receive rebates of up to $975 in addition to the property tax relief that all homeowners receive. Nearly 580,000 seniors will be eligible for additional relief through the state's expanded Property Tax/Rent Rebate Program.

But many seniors said they'd still like to see more relief.

"Property taxes are the biggest hit seniors on a fixed income take," said Bill Kennedy, a Washington Crossing resident and president of the Bucks County Coalition of Senior Communities. "If you look at the millions taken in from gambling, $200, if we get that, is not very much."

In addition to delivering property tax relief to Pennsylvania homeowners, the law enacted the state's first-ever limits on school boards' ability to raise property taxes. Already this year, more than three in four school districts have reported they are going to keep any property tax increase at or below the rate of inflation. That includes Council Rock.

"In spite of the economic downturn, we are able to maintain the same level of property tax relief in the coming year that homeowners are receiving right now," Rendell said. "That is due in large part to the speed with which many of our venues were launched and their competitiveness with other states."

The act also dramatically expanded Pennsylvania's Property Tax/Rent Rebate Program. Before the expansion, approximately 310,000 older Pennsylvanians benefited from the program.

Now older families with incomes up to $35,000 are eligible for rebates of up to $975, including additional relief for seniors who pay a large share of their income in property taxes or who live in high property-tax areas.

Those eligible have until June 30 to sign up for the program by calling 1-888-222-9190.

Who will benefit

Revenue from slot-machine gambling money will benefit:

? Homeowners and farm owners (outside Philadelphia):

Less than $200 average reduction per household on school property tax bills for 2009-10 school year.

Home and farm owners must complete and return an application to the county to receive a reduction.

? Philadelphia residents:

2010 wage tax rate remains at 3.93 percent, a 5.7 percent reduction from 2008 rate of 4.169 percent.

? Philadelphia nonresidents who work in the city:

2010 wage tax rate remains at 3.5 percent, a 5 percent reduction from 2008 rate of 3.685 percent.

? Low-income elderly:

Seniors with income $35,000 or less can get rent or property tax rebates of up to $975.

Source: Rendell administration

April 14, 2009 02:00 AM