HARRISBURG — The Independent Fiscal Office (IFO) released its dynamic economic analysis of Senate Bill 962, sponsored by Sen. Dawn Keefer (R-31), and its companion, House Bill 1649, sponsored by Rep. Wendy Fink (R-94), to eliminate school district property taxes for every homeowner, landlord and business in Pennsylvania.
The model shows both bills are revenue neutral in the first year and will actually generate growing surplus revenue for schools over the ten-year window. These new revenue streams outpace the current school property tax, which is capped by the Act 1 index and rises every year. Schools remain fully funded at current levels through a different, more stable mechanism — ending the ever-increasing property tax burden on Pennsylvania families and businesses.
“This IFO report is a game-changer,” said Keefer. “It proves what I have said all along: We can eliminate the unfair, regressive and ever-rising school property tax without shortchanging schools or hurting home values. It delivers real relief to working families — especially those with the lowest incomes — while businesses reinvest in Pennsylvania jobs and growth. Senate Bill 962 is ready to deliver.”
“This confirms our plan is the right one for Pennsylvania,” said Fink. “House Bill 1649 is pro-family, pro-business and pro-growth. It’s time to pass this bill and strengthen Pennsylvania’s economy for generations.”
The legislation replaces school property taxes with:
- A sales tax increase from 6% to 8% on the current base, plus a 2% tax on currently exempt clothing, candy and gum;
- A personal income tax increase from 3.07% to 4.95%; and
- Taxation of certain retirement income (while protecting Social Security, military pensions and previously taxed retirement income).
Both bills are ready for immediate consideration. The full report is available on the Independent Fiscal Office website.
CONTACT: Crystal Patterson, 717-432-1730