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How HB/SB 76 Will Affect You And Why It Should Continue To Be Opposed

Hb/sb 76

Last year, HB/SB 76, courtesy of state Sen. David Argall, R-Schuylkill, didn’t pass by just one vote. But after November’s election, the GOP has more control in both the House and Senate.

While the bill aims to repeal the school property tax, it will actually do more harm than good. In fact, it will mean higher taxes for the all the private citizens. We here at Fellerman & Ciarimboli do not believe this bill will be good for the people of Pennsylvania and therefore urge everyone to get in touch with their local state representatives and tell them to vote “No” on HB/SB 76.

Why oppose the bill?

It won’t remove municipal or county property taxes. Meanwhile, school districts can still collect real estate taxes to pay off their existing debt (normally issued as 20-year bonds). The Pennsylvania Association of School Business Officials conducted a study that even concluded that only 2 percent of school districts could eradicate their tax levies.

In addition, the $2.7 billion in property taxes paid by Pennsylvania businesses will instead pass onto private citizens in the form of higher sales taxes and personal income taxes.

Using Pittsburgh as an example, we’ll show you how this bill can impact a Pennsylvania citizen.

  • The personal income tax will jump from 3.07 percent to 4.95 percent. For example, if you earn a $50,000 annual salary, your state income tax will go from $1,535 to $2,475.
  • Let’s say you own a home which is assessed at $100,000. Without homestead or senior exemptions, your current property taxes equal $2,288. Even though the school property tax will be eliminated ($984), your state income tax will increase by $940, barely making a difference.
  • The bill will raise the state sales tax from 6 to 7 percent (8 percent in Allegheny County)
  • The tax will also cover products and services that were once tax-free like clothing items over $50 and food.

Our team of lawyers at Fellerman & Ciarimboli urge you to contact your state representatives as soon as possible and tell them to oppose this bill. To learn more about HB/SB 76, please give us a call at 888-570-HURT or fill out a contact form on our site.

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