School Property Tax Elimination Act

The SPTEA eliminates school property tax.

The School Property Tax Elimination Act, or House Bill No. 1275, removes the school property tax in Pennsylvania and adds a personal income tax. Because citizens will no longer have to pay a school property tax, many groups, like Pennsylvania Taxpayers Cyber Coalition, have shown their support for the bill.

Ability of School Districts

School districts may remove or add a personal income tax based on the average personal income of the district's residents. However, in order to do so, the district must hold a public hearing, and the district electorate must approve of the change.

Public Transportation Fund

This act creates a public transportation fund. If the school district succeeds in imposing an income tax, a minimum of 1.01 percent of the tax and a maximum of $75,000,000 must be added to this fund.

Senior Citizen Rebates

Senior citizens may request tax rebates if their household income is $15,000 or less. Rebates may not exceed $500. Those exempt from real property taxes can not participate in rebates. Senior citizens hoping to earn this rebate must be 65 years old, except for widows and widowers who can be 50 years old.

References

• Pennsylvania General Assembly: House Bill No. 1275

Resources

• Pennsylvania Taxpers Cyber Coalition: The School Property Tax Elimination Act