Pennsylvania Voters Reject Tax Plan to Finance Schools

Jon Hurdle:

Pennsylvania voters overwhelmingly rejected a plan to reduce property taxes in return for higher local income taxes as a way of financing school districts, officials said Wednesday.

The proposal appeared on ballots in all but 3 of the state’s 501 school districts on Tuesday after a campaign by Gov. Edward G. Rendell to cut property taxes.

Mr. Rendell, a Democrat, promoted the plan as a chance for homeowners to increase the size of property tax cuts that they will receive when an anticipated $1 billion in revenue from 14 new casinos that are being built around the state is used for school financing, starting in June 2008.

But only 4 of the 419 districts reporting by midafternoon Wednesday approved the plan, according to a Pennsylvania Department of State Web site.

Under the state’s Taxpayer Relief Act, school boards have the right — with voter approval — to impose or increase taxes on earned income or personal income — which includes items like interest and dividends — to pay for an equal reduction in property taxes.

Posted by Jim Zellmer at May 18, 2007 12:05 AM
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