Act 72 and Property Tax Relief
Act 72 is Pennsylvania state tax legislation intended to provide some measure of school property tax relief through state gaming revenues and increased local income taxes. The remainder of funds required to support public schools, however, would shift from local property tax to individuals' earned or personal income taxes. Note that Act 72 does not provide property tax relief for businesses nor does it provide any relief to renters who, under Act 72, would have to pay higher earned income tax.
Furthermore, Act 72 would create new costs and responsibilities for school districts without new dollars for education programming. It would mandate backend referendum—or additional legislation—for tax rate increases exceeding the index. CAPS believes that subjecting school districts to referendum is not sound public or education policy. Districts could be forced to reduce course offerings, increase class size and cut honors, advanced placement, music, art and after-school programs.
In 2005, 32 out of 35 school districts in Bucks and Montgomery counties researched the implications of opting in to Act 72 and chose not to do so. CAPS also believes that true property tax relief will not be accomplished by simply mandating the provisions of legislation such as Act 72.
While a majority of school boards expressed their lack of support for Act 72 last year, to date, the issue has not yet been closed in Pennsylvania's legislature.
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Quakertown Community Senior High School sophomore Jennifer Rokoski, Best of Category winner for Drawing-Color, celebrates next to her winning artwork at the 19th Annual "Touch the Future" Student Art Exhibit sponsored by the Mideastern Region of the Pennsylvania State Education Association. The exhibit showcased 252 pieces of art, selected from more than 500 student entries. Rokoski's art instructor was Mary Tull.
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