Since I began writing The Keystone newsletter three-and-a-half years ago, no issue has triggered more audience feedback than Pennsylvania’s property taxes, which are currently the 12th highest in the nation, according to the nonprofit Tax Foundation.
A majority of a homeowner’s property tax bill goes toward funding Pennsylvania’s public schools, and those rates are set by local school boards. So I’ve heard from many older Pennsylvanians who are frustrated that they’re still forced to pay school taxes when they no longer have children enrolled in them, especially since the state is pulling down more school tax revenue than it has in years.
I’ve also heard from many residents who see no reason why older homeowners should be exempt from school taxes, arguing that funding education benefits everyone, and should therefore be everyone’s responsibility.
The notion of reforming property taxes in Pennsylvania has been kicked around both sides of the aisle in Harrisburg for decades with nothing but a graveyard of legislative efforts to show for it. The latest pitch is from York County Republican state Sen. Dawn Keefer, who is proposing to eliminate school property taxes altogether and cover the shortfall by hiking sales taxes.
In Pennsylvania’s gubernatorial race, Republican challenger and State Treasurer Stacy Garrity claims she could abolish school and municipal property taxes without raising existing taxes or creating new ones by using $11 billion in special funds she said are sitting off the books.
Gov. Josh Shapiro’s campaign has yet to push anything major surrounding property tax reform, and has instead focused on his administration’s efforts to ease the tax bill burden for eligible seniors by enhancing the state’s Property Tax/Rent Rebate program.
With property taxes top of mind for many Pennsylvania voters with the midterms approaching, we asked our newsletter readers:
If you could make one change to Pennsylvania’s property tax system, what would it be?
Here’s what they had to say (answers have been edited for length and clarity):
“Increase sales tax to 7% and eliminate property tax on seniors over 65 on their primary residence. By increasing the sales tax, everyone pays. Also property taxes inhibit the economy. People are afraid to do improvements to their home because they fear their property taxes will go up.” — Ed Miller, Lehighton
“I don’t agree that property taxes should be eliminated. The services they fund benefit all members of the commonwealth. However, I do believe some relief should be given to seniors living on fixed incomes. The idea that those without children (in schools) shouldn’t have to pay property taxes is ludicrous and selfish thinking. Every one of those persons so adamant that they shouldn’t have to pay school taxes because they don’t have children received their own education at the cost of their parents’ generation. Our responsibility is to produce productive, well-rounded citizens.” — Ann, Red Lion
“Eliminate the [property tax] exceptions on churches, universities, nonprofits, state and local government properties—all of them. You own property, you pay the tax. Then use that additional income to offer rebates to elderly and disabled veterans.” — Shane, Selinsgrove
“Owner-occupant property should be taxed on the purchase price, adjusted for inflation. Just because a neighborhood has gentrified does not mean an older resident is any more able to pay a higher tax. The increased equity is only realized upon the sale of the property, and that is where it should be taxed. Additionally, property tax is a terrible way to fund schools. Rich neighborhoods get good schools while poor neighborhoods get bad schools. Schools should be paid for out of the state’s general funds.” — Mark, Pittsburgh
“I would eliminate property tax, especially school tax, for those over 65. Our school tax goes up almost every year. They closed all the local elementary schools and built one big school plus a ‘Taj Mahal’ high school. They are taxing seniors out of their homes and discouraging young people from moving here.” — Vanna, Penn Hills
“If raising the sales tax will bring in the needed revenue, it’s a no-brainer. The older I get, the more I think about how we are going to afford to pay our property taxes when we are on a fixed income. I am not rich and neither are many Pa. residents. If something unforeseen were to happen and I was unable to pay my taxes, would I lose my home that has been in my family for four generations to a tax sale? That is just ridiculous! Raise the sales tax and stop property and school taxes!” — Karen Balchunas, Luzerne County
“Our school tax has increased over $950 in the last five years. We are on a fixed income, and our SSI increase is much less than the school tax increase. I do think we should pay the tax. However, I believe that once you are 65, a slight discount should be given, between 5% and 10%.” — Maureen Readinger-Hibschman, Bucks County
“I feel it’s my duty to pay taxes but seniors should not have a tax increase to the point of not being able to own their own home. We want to be able to retire and live in our home. Maybe some type of discount for seniors.” — Joanne Horton, Easton
“Mandated reassessment every five years. Some counties are still taxing properties based on values from the 1970s. That makes the system internally unfair to many taxpayers, particularly those of lower incomes and in declining neighborhoods.” — Chuck P., Leechburg
“If the property tax was levied after regular and recent reassessments, thereby increasing its fairness, it could be used, but only for support of municipal government, not education. But politically that is quicksand, and it will never happen in Pennsylvania. So, abolish the property tax and shift the vast amount of revenue to broad-based taxes like the sales tax and the income tax. There is no perfectly fair or perfectly efficient tax. But the property tax is the least fair and least efficient of any.” — Michael L. Young, Derry Twp.
“I would eliminate school (not municipal or county) taxes for Pennsylvanians 65+ by legalizing adult-use cannabis and using the taxes to fund schools. Do it NOW!” — Jason L., Montgomery County
“Lower property taxes for seniors and tax the rich! Just a small increase in income tax for those earning 1 million plus would mean a lot of added revenue.” — Cheryl Bowman, Chester County
