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http://www.statecollegewatchdog.com and scribed.com/statecollegewatchdog Governor Wolf’s Discombobulated Tax Increase Plan Proposed Tax Impact on Most Individual Property Owners and Renters is Worse Not Better April 16, 2015 Governor Wolf’s proposed 2015 budget is a record $33.8 billion, a 16 percent increase in spending over last year. To support the massive spending increase, the Governor proposes a 40 percent sales tax increase by raising the rate (6 to 6.6 percent) and removing exemptions that currently exist on a number of goods and services. http://www.pennlive.com/politics/index.ssf/2015/03/heres_what_itemsservices_would.ht ml Governor Wolf also proposes a 21 percent increase to the state’s personal income tax (from 3 to 3.7 percent) flat rate at all income levels. Over the course of a full fiscal year, these new taxes will raise an additional $8 billion from Pennsylvania taxpayers. Wolf argues that the increase is chiefly for education. (As an aside and to show comparison the state education pension deficit is greater than the entire proposed 2015 Pennsylvania budget.) Message to Wolf -- pensions are an education cost. Solve that problem first. Taxpayers in 404 (of 500 total) school districts will collectively pay more increased sales and personal income taxes than they receive in property tax reductions. That Includes all Centre County school districts according to the Pennsylvania House Republican Appropriations committee: http://www.taxpayersthatpay.com/ Taxpayers in 96 school districts (none in Centre County) will receive more in property tax funds than they pay in increased sales and personal income taxes. The SCASD already pays $20,000 per student, 82 percent from local tax revenue. The state pays 17 percent, federal 1 percent. Wolf proposes increasing the state contribution to the SCASD from $22.3 to $30 million of a $136 million SCASD budget; that is from 17 to 22 percent. To gain that extra $7.8 million in state contribution, the state will collect an extra $36 million in sales and incomes taxes from SCASD residents. Every household earning over $40,000 is hit wth a tax increase. Wolf’s plan, a tax shift, when fully implemented, raises taxes by $8 billion state- wide and only returns $3.6 billion back to taxpayers for education and property tax and rent relief. However, Wolf presents the tax increase as mostly about education it is not.

Wolf’s Discombobulated Tax Increase Plan

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A candid analysis of Pennsylvania Governor Wolf’s proposed plan to increase sales taxes (40 percent) and personal income taxes (21 percent) for a record setting budget increase (16 percent). The plan is a tax shift. Wolf argues the increases are needed to increase funding education and school property tax reductions. Taxpayers in 404 of 500 school districts will collectively pay more increased sales and personal income taxes than they receive in property tax reductions or their districts receive in new state revenue. Taxpayers in 96 school districts will receive more in property tax funds than they pay in increased sales and personal income taxes. Wolf’s plan, when fully implemented, raises taxes by $8 billion state-wide and only returns $3.6 billion back to taxpayers for education and property tax and rent relief. Not one dollar goes toward reducing the state and school employee $40 to $44 billion pension deficiency. Impact on individual taxpayers in Centre County and select other school districts is provided.

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http://www.statecollegewatchdog.com and scribed.com/statecollegewatchdog

Governor Wolf’s Discombobulated Tax Increase Plan

Proposed Tax Impact on Most Individual Property Owners and Renters is Worse – Not Better

April 16, 2015

Governor Wolf’s proposed 2015 budget is a record $33.8 billion, a 16 percent increase in spending over last year. To support the massive spending increase, the Governor proposes a 40 percent sales tax increase by raising the rate (6 to 6.6 percent) and removing exemptions that currently exist on a number of goods and services. http://www.pennlive.com/politics/index.ssf/2015/03/heres_what_itemsservices_would.html Governor Wolf also proposes a 21 percent increase to the state’s personal income tax (from 3 to 3.7 percent) flat rate at all income levels. Over the course of a full fiscal year, these new taxes will raise an additional $8 billion from Pennsylvania taxpayers. Wolf argues that the increase is chiefly for education. (As an aside and to show comparison the state education pension deficit is greater than the entire proposed 2015 Pennsylvania budget.) Message to Wolf -- pensions are an education cost. Solve that problem first.

Taxpayers in 404 (of 500 total) school districts will collectively pay more

increased sales and personal income taxes than they receive in property tax reductions. That Includes all Centre County school districts according to the Pennsylvania House Republican Appropriations committee: http://www.taxpayersthatpay.com/

Taxpayers in 96 school districts (none in Centre County) will receive more in property tax funds than they pay in increased sales and personal income taxes.

The SCASD already pays $20,000 per student, 82 percent from local tax revenue. The state pays 17 percent, federal 1 percent. Wolf proposes increasing the state contribution to the SCASD from $22.3 to $30 million of a $136 million SCASD budget; that is from 17 to 22 percent. To gain that extra $7.8 million in state contribution, the state will collect an extra $36 million in sales and incomes taxes from SCASD residents. Every household earning over $40,000 is hit wth a tax increase.

Wolf’s plan, a tax shift, when fully implemented, raises taxes by $8 billion state-wide and only returns $3.6 billion back to taxpayers for education and property tax and rent relief. However, Wolf presents the tax increase as mostly about education – it is not.

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U.S. Secretary of Education Arne Duncan persuasively agrees -- the Pennsylvania school property tax system is the worst in the nation with respect to equal funding for all students. It is also among the most regressive and confiscatory. http://www.centredaily.com/2015/03/27/4674669/politically-incorrect-loathed.html#storylink=cpy Wolf makes it worse.

Centre County is hit especially hard with residents paying out $34.3 million more than receiving.

The Wolf Administration proposes using proceeds from increased sales and personal income taxes to provide increased state funding to school districts and to also provide increased homestead property tax exclusions to home owners and rebates to renters. Homeowners in the same school district would receive the same homestead exclusion regardless of the value of their home, the amount of property tax paid, or their income. All renters in any district would receive the same $500 rebate regardless of rent paid or income. SCASD resident Phil Edmunds provides (below) an analysis of the direct impact on individual taxpayers in Centre County and also thirteen other comparative school districts. The reader may scroll through Edmund’s analysis below (22 pages) or skip from section to section using the hyperlinks below.

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Wolf’s Proposal Edmund’s Evaluation Methodology Effect on Renters State Wide Centre County School Districts Bald Eagle Area School District Bellefonte Area School District Penns Valley Area School District Philipsburg-Osceola Area School District State College Area School District Other County School Districts Austin Area School District Potter County (lowest PA adjusted personal income) Bethlehem-Center School District Washington County (lowest PA median assessed property value) (highest property tax millage rate) (lowest median property tax) Big Spring School District, Cumberland County Carlisle Area School District Cumberland County (a SCASD demographic cohort district) Derry Township School District Dauphin County Lower Merion School District, Montgomery County (a SCASD demographic cohort district) (second highest PA adjusted personal income) Mifflin County School District Millcreek Township School District Erie County Penn Hills School District Allegheny County Radnor Township School District Delaware County (highest PA median assessed property value) (highest median property tax) Susquehanna Township School District Dauphin County West Perry School District Perry County (lowest property tax millage rate)

Summary & Conclusions

_________________Selected Proposals by Governor Wolf_________________

1- Raise the personal income tax rate from 3.07% to 3.7%, increasing revenues by approximately $2.4

billion annually Source: http://touch.mcall.com/#section/-1/article/p2p-82966732/

2- Raise the sales tax rate from 6.0% to 6.6%, make it applicable to many formerly untaxed entities

(newspapers, magazines, text books, over-the-counter drugs, transportation, spectator sports, cable TV,

child day care, and numerous ‘services’ from lawyers, accountants, dry cleaners, undertakers, realtors,

QUICK FIND control-click on hyperlinks below to go to sections or

school districts; control-click below each section on “Quick Find” to return here.

4

trash collectors, travel agents, business support, advertisers, etc), increasing revenues by

approximately $1.6 billion annually Source: http://touch.mcall.com/#section/-1/article/p2p-82966732/ 3- Exempt renters’ and home owners’ taxable income (with 2 dependents) of up to $36,000 from

income tax Source:

http://www.pennlive.com/midstate/index.ssf/2015/03/how_would_wolfs_proposed_tax_s.html

4- Allocate $3.8 billion to the state’s 500 school districts for their use with Homestead Exclusions to

reduce property taxes (Source: http://www.schoolsthatteach.com/), using the procedure described in

Section 505(a)(3) of Act 1 of Special Session 1 of 2006 (P.L. 1873), as per personal communication to

me from Rep. Kerry Benninghoff

5- An annual $500 tax rebate to residential renters in lieu of Homestead Exclusions Source:

http://www.pennlive.com/midstate/index.ssf/2015/03/how_would_wolfs_proposed_tax_s.html

QuickFind

________________________Evaluation Methodology______________________

1- Different incomes used here are arbitrary. Income taxes are calculated with simple arithmetic from

those arbitrary figures. For example, a 3.07% tax on a taxable income of $1000 is $30.70.; a 3.7% tax

on the same income is $37.00; $37.00 - $30.70 yields an income tax increase of $6.30. A tax of $1105

that is not collected, as with renters or home owners (2 or more dependents) with taxable income of up

to $36,000, represents an income tax decrease of $1105.

2- Sales taxes at rates of 6.0% and 6.6% as used here for different incomes are estimates. They are

from the pennlive.com web site, where staff published analyses of several hypothetical home owners,

with different incomes, from several school districts in south central Pennsylvania. Staff of

pennlive.com claim the estimates are from the Wolf administration. Source:

http://www.pennlive.com/midstate/index.ssf/2015/03/how_would_wolfs_proposed_tax_s.html

3- Homestead Exclusions for school districts are calculated by simple division of current and proposed

future allocations of HE money from the state by the number of home owners qualified to receive the

HEs in each district. HE increases are calculated by subtraction of current HEs from proposed HEs.

In some districts, HE increases are smaller than one would expect from these simple divisions and

subtractions because of state law that comes into play as allocations from the state increase, i.e., a HE

in any district is capped at 50% of the tax that would be levied on the median assessed residential

property value in that district. Surplus allocated money that could not be used for HEs because of that

cap would be used to slightly reduce the millage rate. Sources:

https://www.portal.state.pa.us/portal/server.pt/community/property_tax_relief/7452/property_tax_redu

ction_allocations/510335 and http://www.schoolsthatteach.com/

4- Maximum allowed Homestead Exclusions for school districts are calculated by multiplying the

median assessed property value for a district by the property tax millage rate for that district, with that

value then divided by 2.

5- Median assessed property values, property tax millage rates, and adjusted personal incomes for all

school districts are available here:

https://www.portal.state.pa.us/portal/server.pt/community/financial_data_elements/7672

6- Median household income data for Pennsylvania counties are available here:

http://quickfacts.census.gov/qfd/states/42/42027.html

QuickFind

______________________Effects on Renters, State-wide ____________________

5

1- Renters with taxable income of up to $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax

decrease of $1399

2- Renters with taxable income of $40,000 have a $252 increase in income tax, a $229 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax decrease of $19

3- Renters with taxable income of $45,000 have a $284 increase in income tax, a $260 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $44

4- Renters with taxable income of $50,000 have a $315 increase in income tax, a $292 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $107

5- Renters with taxable income of $60,000 have a $378 increase in income tax, a $295 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $173

6- Renters with taxable income of $70,000 have a $441 increase in income tax, a $298 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $239

7- Renters with taxable income of $75,000 have a $473 increase in income tax, a $299 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $272

8- Renters with taxable income of $80,000 have a $504 increase in income tax, a $312 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $316

9- Renters with taxable income of $90,000 have a $567 increase in income tax, a $337 increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $404

10- Renters with taxable income of $100,000 have a $630 increase in income tax, a $363, increase in

sales tax, and a $500 tax rebate in lieu of Homestead Exclusions, for a combined tax increase of $493

QuickFind

_______________Bald Eagle Area School District, Centre County ___________ Adjusted Personal Income = $247,752,981

Median household income for county = $50,336 Median assessed property value = $34,205

Property tax millage rate = 51.5500

Median property tax = $1763

State allocation for Homestead Exclusions in 2014-15 = $731,994

State allocation proposed for Homestead Exclusions in 2016 = $4,838,727

Property owners qualified for Homestead Exclusions = 4118

Homestead Exclusion under 2014-15 conditions = $178

Homestead Exclusion with proposed 2016 allocation = $1175

Maximum Homestead Exclusion allowed under state law = $881

Homestead Exclusion increase attributable to proposed 2016 allocation = $703

____________________Effects on Home Owners _______________________ Allocation of $4,838,727 from the state to the district provides each of the 4118 qualified home

owners with a Homestead Exclusion increase of $703. The HE increase would be $997 except for the

fact that the maximum HE currently allowed under state law is $881. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax decrease of

$1602

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax decrease of $222

6

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $703 increase in Homestead Exclusion, for a combined tax decrease of $159

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax decrease of $96

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax decrease of $30

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax increase of $36

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax increase of $69

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax increase of $113

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax increase of $201

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $703 increase in Homestead Exclusion, for a combined tax increase of

$290

#QuickFind

______________Bellefonte Area School District, Centre County ____________ Adjusted Personal Income = $491,009,877

Median household income for county = $50,336

Median assessed property value = $44,800

Property tax millage rate = 47.4107

Median property tax = $2123

State allocation for Homestead Exclusions in 2014-15 = $1,173,959

State allocation proposed for Homestead Exclusions in 2016 = $6,818,653

Property owners qualified for Homestead Exclusions = 6389

Homestead Exclusion under 2014-15 conditions = $184

Homestead Exclusion with proposed 2016 allocation = $1067

Maximum Homestead Exclusion allowed under state law = $1061

Homestead Exclusion increase attributable to proposed 2016 allocation = $877

__________________________Effects on Home Owners _____________________ Allocation of $6,818,653 from the state to the district provides each of the 6389 qualified home

owners with a Homestead Exclusion increase of $877. The HE increase would be $883 except for the

fact that the maximum HE currently allowed under state law is $1061. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of

$1776

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $396

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $333

7

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $270

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $204

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $138

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $105

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax decrease of $73

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax increase of $27

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $877 increase in Homestead Exclusion, for a combined tax increase of

$116

#QuickFind

______________Penns Valley Area School District, Centre County _________________

Adjusted Personal Income = $244,714,608

Median household income for county = $50,336

Median assessed property value = $43,085

Property tax millage rate = 45.0182

Median property tax = $1940

State allocation for Homestead Exclusions in 2014-15 = $560,945

State allocation proposed for Homestead Exclusions in 2016 = $3,128,804

Property owners qualified for Homestead Exclusions = 3751

Homestead Exclusion under 2014-15 conditions = $150

Homestead Exclusion with proposed 2016 allocation = $834

Maximum Homestead Exclusion allowed under state law = $970

Homestead Exclusion increase attributable to proposed 2016 allocation = $684

________________________Effects on Home Owners ______________________

Allocation of $3,128,804 from the state to the district provides each of the 3751 qualified home

owners with a Homestead Exclusion increase of $684

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax decrease of

$1583

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax decrease of $203

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $684 increase in Homestead Exclusion, for a combined tax decrease of $140

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax decrease of $77

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax decrease of $11

8

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax increase of $55

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax increase of $86

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax increase of $132

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax increase of $220

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $684 increase in Homestead Exclusion, for a combined tax increase of

$309

#QuickFind

______Philipsburg-Osceola Area School District, Centre/Clearfield Counties____ Adjusted Personal Income = $224,009,588

Median household income for county = $50,336

Median assessed property value = $16,530

Property tax millage rate = 52.0900

Median property tax = $861

State allocation for Homestead Exclusions in 2014-15 = $781,188

State allocation proposed for Homestead Exclusions in 2016 = $4,993,780

Property owners qualified for Homestead Exclusions = 3976

Homestead Exclusion under 2014-15 conditions = $196

Homestead Exclusion with proposed 2016 allocation = $1256

Maximum Homestead Exclusion allowed under state law = $430

Homestead Exclusion increase attributable to proposed 2016 allocation = $234

_________________________Effects on Home Owners ________________________

Allocation of $4,993,780 from the state to the district provides each of the 3976 qualified home

owners with a Homestead Exclusion increase of $234. The HE increase would be $1060 except for the

fact that the maximum HE currently allowed under state law is $430. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax decrease of

$1133

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $247

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $310

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $373

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $439

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $505

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $536

9

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $582

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of $670

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $234 increase in Homestead Exclusion, for a combined tax increase of

$759

#QuickFind

___________ State College Area School District, Centre County _____________

Adjusted Personal Income = $1,839,393,760

Median household income for county = $50,336

Median assessed property value = $69,395

Property tax millage rate = 39.5056

Median property tax = $2741

State allocation for Homestead Exclusions in 2014-15 = $1,422,517

State allocation proposed for Homestead Exclusions in 2016 = $8,400,000

Property owners qualified for Homestead Exclusions = 13,122

Homestead Exclusion under 2014-15 conditions = $108

Homestead Exclusion with proposed 2016 allocation = $640

Maximum Homestead Exclusion allowed under state law = $1370

Homestead Exclusion increase attributable to proposed 2016 allocation = $532

_________________________Effects on Home Owners _______________________ Allocation of $8,400,000 from the state to the district provides each of the 13,122 qualified home

owners with a Homestead Exclusion increase of $532

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax decrease of

$1431

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax decrease of $51

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $12

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $75

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $141

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $207

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $240

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $284

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of $372

10

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $532 increase in Homestead Exclusion, for a combined tax increase of

$461

#QuickFind

_________________Austin Area School District, Potter County ______________

Adjusted Personal Income = $19,577,427 (lowest in state)

Median household income for county = $41,547

Median assessed property value = $21,120

Property tax millage rate = 44.7800

Median property tax = $946

State allocation for Homestead Exclusions in 2014-15 = $132,378

State allocation proposed for Homestead Exclusions in 2016 = $562,120

Property owners qualified for Homestead Exclusions = 422

Homestead Exclusion under 2014-15 conditions = $314

Homestead Exclusion with proposed 2016 allocation = $1332

Maximum Homestead Exclusion allowed under state law = $473

Homestead Exclusion increase attributable to proposed 2016 allocation = $159

_______________________Effects on Home Owners _______________________ Allocation of $562,120 from the state to the district provides each of the 422 qualified home owners

with a Homestead Exclusion increase of $159. The HE increase would be $1018 except for the fact

that the maximum HE currently allowed under state law is $473. Surplus allocated money that could

not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax decrease of

$1058

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $322

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $385

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $448

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $514

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $580

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $613

8-Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $657

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of $745

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $159 increase in Homestead Exclusion, for a combined tax increase of

$834

#QuickFind

11

__________ Bethlehem-Center School District, Washington County _________

Adjusted Personal Income = $159,852,970

Median household income for county = $53,693

Median assessed property value = $6,188 (lowest in state)

Property tax millage rate = 108.6400

Median property tax = $672

State allocation for Homestead Exclusions in 2014-15 = $465,564

State allocation proposed for Homestead Exclusions in 2016 = $2,904,465

Property owners qualified for Homestead Exclusions = 2654

Homestead Exclusion under 2014-15 conditions = $175

Homestead Exclusion with proposed 2016 allocation = $1094

Maximum Homestead Exclusion allowed under state law = $336

Homestead Exclusion increase attributable to proposed 2016 allocation = $161

________________________Effects on Home Owners _____________________ Allocation of $2,904,465 from the state to the district provides each of the 2654 qualified home

owners with a Homestead Exclusion increase of $161. The HE increase would be $919 except for the

fact that the maximum HE currently allowed under state law is $336. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax decrease of

$1060

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $320

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $383

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $446

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $512

6- Home owners with taxable income of $70,000 have a $411 increase in income tax, a $298 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $578

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $613

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $655

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of $743

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $161 increase in Homestead Exclusion, for a combined tax increase of

$832

#QuickFind

____________ Big Spring School District, Cumberland County ______________

Adjusted Personal Income = $488,367,305

12

Median household income for county = $60,826

Median assessed property value = $176,700

Property tax millage rate = 12.9771

Median property tax = $2293

State allocation for Homestead Exclusions in 2014-15 = $774,580

State allocation proposed for Homestead Exclusions in 2016 = $5,365,396

Property owners qualified for Homestead Exclusions = 5986

Homestead Exclusion under 2014-15 conditions = $129

Homestead Exclusion with proposed 2016 allocation = $896

Maximum Homestead Exclusion allowed under state law = $1146

Homestead Exclusion increase attributable to proposed 2016 allocation = $767

__________________________Effects on Home Owners __________________ Allocation of $5,365,396 from the state to the district provides each of the 5986 qualified home

owners with a Homestead Exclusion increase of $767.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of

$1666

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of $286

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of $223

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of $160

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of $94

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax decrease of $28

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax increase of $5

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax increase of $49

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax increase of $137

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $767 increase in Homestead Exclusion, for a combined tax increase of

$226

#QuickFind

_______________ Carlisle Area School District, Cumberland County _______

Adjusted Personal Income = $849,788,316

Median household income for county = $60,826

Median assessed property value = $170,850

Property tax millage rate = 12.9333

Median property tax = $2210

State allocation for Homestead Exclusions in 2014-15 = $1,103,961

State allocation proposed for Homestead Exclusions in 2016 = $10,028,885

13

Property owners qualified for Homestead Exclusions = 8312

Homestead Exclusion under 2014-15 conditions = $133

Homestead Exclusion with proposed 2016 allocation = $1207

Maximum Homestead Exclusion allowed under state law = $1105

Homestead Exclusion increase attributable to proposed 2016 allocation = $972

________________________Effects on Home Owners _______________________

Allocation of $10,028,885 from the state to the district provides each of the 8312 qualified home

owners with a Homestead Exclusion increase of $972. The HE increase would be $1074 except for

the fact that the maximum HE currently allowed under state law is $1105. Surplus allocated money

that could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of

$1871

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $491

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $428

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $365

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $299

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $233

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $200

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $156

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax decrease of $68

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $972 increase in Homestead Exclusion, for a combined tax increase of $21

#QuickFind

______________ Derry Twp. School District, Dauphin County _______________

Adjusted Personal Income = $972,157,834

Median household income for county = $54,066

Median assessed property value = $154,400

Property tax millage rate = 17.9227

Median property tax = $2767

State allocation for Homestead Exclusions in 2014-15 = $664,581

State allocation proposed for Homestead Exclusions in 2016 = $4,100,514

Property owners qualified for Homestead Exclusions = 5361

Homestead Exclusion under 2014-15 conditions = $123

Homestead Exclusion with proposed 2016 allocation = $765

Maximum Homestead Exclusion allowed under state law = $1384

Homestead Exclusion increase attributable to proposed 2016 allocation = $642

14

________________________Effects on Home Owners ___________________ Allocation

of $4,100,514 from the state to the district provides each of the 5361 qualified home owners with a

Homestead Exclusion increase of $642

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax decrease of

$1541

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax decrease of $161

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $642 increase in Homestead Exclusion, for a combined tax decrease of $98

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax decrease of $35

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of $31

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of $97

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of $130

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of $174

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of $262

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $642 increase in Homestead Exclusion, for a combined tax increase of

$351

#QuickFind

___________ Lower Merion School District, Montgomery County ___________

Adjusted Personal Income = $7,266,576,756 (2nd

highest in state)

Median household income for county = $79,183

Median assessed property value = $261,350

Property tax millage rate = 18.3600

Median property tax = $4798

State allocation for Homestead Exclusions in 2014-15 = $3,473,909

State allocation proposed for Homestead Exclusions in 2016 = $24,085,183

Property owners qualified for Homestead Exclusions = 15,647

Homestead Exclusion under 2014-15 conditions = $222

Homestead Exclusion with proposed 2016 allocation = $1538

Maximum Homestead Exclusion allowed under state law = $2399

Homestead Exclusion increase attributable to proposed 2016 allocation = $1316

____________________ Effects on Home Owners ______________________

Allocation of $24,085,183 from the state to the district provides each of the 15,647 qualified home

owners with a Homestead Exclusion increase of $1316

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of

$2215

15

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $835

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $772

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $709

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $643

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $577

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $544

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $500

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of $412

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $1316 increase in Homestead Exclusion, for a combined tax decrease of

$323

#QuickFind

___________________ Mifflin County School District ________________________

Adjusted Personal Income = $681,629,901

Median household income for county = $40,384

Median assessed property value = $37,100

Property tax millage rate = 33.4511

Median property tax = $1241

State allocation for Homestead Exclusions in 2014-15 = $1,919,732

State allocation proposed for Homestead Exclusions in 2016 = $12,274,225

Property owners qualified for Homestead Exclusions = 11,212

Homestead Exclusion under 2014-15 conditions = $171

Homestead Exclusion with proposed 2016 allocation = $1095

Maximum Homestead Exclusion allowed under state law = $620

Homestead Exclusion increase attributable to proposed 2016 allocation = $449

______________________Effects on Home Owners ____________________

Allocation of $12,274,225 from the state to the district provides each of the 11,212 qualified home

owners with a Homestead Exclusion increase of $449. The HE increase would be $924 except for the

fact that the maximum HE currently allowed under state law is $620. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax decrease of

$1348

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $32

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $95

16

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $158

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $224

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $290

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $323

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $367

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of $455

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $449 increase in Homestead Exclusion, for a combined tax increase of

$544

#QuickFind

_________________Millcreek Twp. School District, Erie County __________

Adjusted Personal Income = $1,665,249,887

Median household income for county = $45,202

Median assessed property value = $140,100

Property tax millage rate = 13.2766

Median property tax = $1860

State allocation for Homestead Exclusions in 2014-15 = $934,701

State allocation proposed for Homestead Exclusions in 2016 = $6,707,196

Property owners qualified for Homestead Exclusions = 13,698

Homestead Exclusion under 2014-15 conditions = $68

Homestead Exclusion with proposed 2016 allocation = $490

Maximum Homestead Exclusion allowed under state law = $930

Homestead Exclusion increase attributable to proposed 2016 allocation = $422

________________________Effects on Home Owners _____________________ Allocation of $6,707,196 from the state to the district provides each of the 13,698 qualified home

owners with a Homestead Exclusion increase of $422

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax decrease of

$1321

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $59

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $122

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $185

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $251

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $317

17

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $350

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $394

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of $482

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $422 increase in Homestead Exclusion, for a combined tax increase of

$571

#QuickFind

_______________ Penn Hills School District, Allegheny County _______________

Adjusted Personal Income = $758,811,970

Median household income for county = $51,366

Median assessed property value = $73,700

Property tax millage rate = 24.1540

Median property tax = $1780

State allocation for Homestead Exclusions in 2014-15 = $2,359,108

State allocation proposed for Homestead Exclusions in 2016 = $12,894,344

Property owners qualified for Homestead Exclusions = 12,476

Homestead Exclusion under 2014-15 conditions = $189

Homestead Exclusion with proposed 2016 allocation = $1034

Maximum Homestead Exclusion allowed under state law = $890

Homestead Exclusion increase attributable to proposed 2016 allocation = $701

_______________________ Effects on Home Owners _______________________

Allocation of $12,894,344 from the state to the district provides each of the 12,476 qualified home

owners with a Homestead Exclusion increase of $701. The HE increase would be $845 except for the

fact that the maximum HE currently allowed under state law is $890. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax decrease of

$1600

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax decrease of $220

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $701 increase in Homestead Exclusion, for a combined tax decrease of $157

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax decrease of $94

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax decrease of $28

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax increase of $38

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax increase of $71

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax increase of $115

18

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax increase of $203

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $701 increase in Homestead Exclusion, for a combined tax increase of

$292

#QuickFind

_____________ Radnor Twp. School District, Delaware County ___________

Adjusted Personal Income = $2,425,783,903

Median household income for county = $64,041

Median assessed property value = $289,535 (highest in state)

Property tax millage rate = 21.2641

Median property tax = $6156

State allocation for Homestead Exclusions in 2014-15 = $1,453,238

State allocation proposed for Homestead Exclusions in 2016 = $8,425,916

Property owners qualified for Homestead Exclusions = 5094

Homestead Exclusion under 2014-15 conditions = $285

Homestead Exclusion with proposed 2016 allocation = $1654

Maximum Homestead Exclusion allowed under state law = $3078

Homestead Exclusion increase attributable to proposed 2016 allocation = $1369

______________________Effects on Home Owners _____________________ Allocation of $8,425,916 from the state to the district provides each of the 5094 qualified home

owners with a Homestead Exclusion increase of $1369

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of

$2268

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $888

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $825

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $762

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $696

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $630

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $597

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $553

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of $465

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $1369 increase in Homestead Exclusion, for a combined tax decrease of

$376

QuickFind

19

___________Susquehanna Twp. School District, Dauphin County __________

Adjusted Personal Income = $628,661,048

Median household income for county = $54,066

Median assessed property value = $112,200

Property tax millage rate = 17.0200

Median property tax = $1909

State allocation for Homestead Exclusions in 2014-15 = $456,765

State allocation proposed for Homestead Exclusions in 2016 = $4,655,958

Property owners qualified for Homestead Exclusions = 6763

Homestead Exclusion under 2014-15 conditions = $68

Homestead Exclusion with proposed 2016 allocation = $688

Maximum Homestead Exclusion allowed under state law = $954

Homestead Exclusion increase attributable to proposed 2016 allocation = $620

_____________________Effects on Home Owners ______________________

Allocation of $4,655,958 from the state to the district provides each of the 6763 qualified home

owners with a Homestead Exclusion increase of $620

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax decrease of

$1519

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax decrease of $139

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $620 increase in Homestead Exclusion, for a combined tax decrease of $76

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax decrease of $13

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax decrease of $53

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax increase of $119

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax increase of $152

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax increase of $196

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax increase of $284

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $620 increase in Homestead Exclusion, for a combined tax increase of

$373

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___________________West Perry School District, Perry County _____________

Adjusted Personal Income = $361,034,591

Median household income for county = $57,375

Median assessed property value = $155,050

Property tax millage rate = 10.4900

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Median property tax = $1626

State allocation for Homestead Exclusions in 2014-15 = $737,949

State allocation proposed for Homestead Exclusions in 2016 = $5,068,418

Property owners qualified for Homestead Exclusions = 5381

Homestead Exclusion under 2014-15 conditions = $137

Homestead Exclusion with proposed 2016 allocation = $942

Maximum Homestead Exclusion allowed under state law = $813

Homestead Exclusion increase attributable to proposed 2016 allocation = $676

_______________________ Effects on Home Owners ______________________ Allocation of $5,068,418 from the state to the district provides each of the 5381 qualified home

owners with a Homestead Exclusion increase of $676. The HE increase would be $805 except for the

fact that the maximum HE currently allowed under state law is $813. Surplus allocated money that

could not be used for HEs because of that cap would be used to slightly reduce the millage rate.

1- Home owners with taxable income of $36,000 have a $1105 exemption from income tax, a $206

increase in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax decrease of

$1575

2- Home owners with taxable income of $40,000 have a $252 increase in income tax, a $229 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax decrease of $195

3- Home owners with taxable income of $45,000 have $284 increase in income tax, a $260 increase in

sales tax, and a $676 increase in Homestead Exclusion, for a combined tax decrease of $132

4- Home owners with taxable income of $50,000 have a $315 increase in income tax, a $292 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax decrease of $69

5- Home owners with taxable income of $60,000 have a $378 increase in income tax, a $295 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax decrease of $3

6- Home owners with taxable income of $70,000 have a $441 increase in income tax, a $298 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax increase of $63

7- Home owners with taxable income of $75,000 have a $473 increase in income tax, a $299 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax increase of $96

8- Home owners with taxable income of $80,000 have a $504 increase in income tax, a $312 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax increase of $140

9- Home owners with taxable income of $90,000 have a $567 increase in income tax, a $337 increase

in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax increase of $228

10- Home owners with taxable income of $100,000 have a $630 increase in income tax, a $363

increase in sales tax, and a $676 increase in Homestead Exclusion, for a combined tax increase of

$317

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______________________Summary & Conclusions _________________________

1- This evaluation was undertaken in an effort to determine how proposals from the Wolf

administration to increase the state sales tax, personal income tax and state allocations of revenue to

school districts for their use with so-called Homestead Exclusions to reduce property taxes on home

owners and renters would affect home owners’ and renters’ “bottom line”, i.e., the aggregate of sales,

income and property taxes. It was conceived as a study of possible effects in the State College Area

school district, but quickly expanded to include the other 4 districts in Centre County for purposes of

comparison. It then expanded again to include several districts from around the state, a total of 17, to

enhance comparisons, as needed data came to my attention.

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2- Adjusted personal incomes in the districts range from the lowest in the state, $19,577,427 (Austin

Area, Potter County) to the second highest in the state, $7,266,576,756 (Lower Merion, Montgomery

County, exceeded only by Philadelphia with $22,842,547,566).

3- Median assessed property values in the districts range from the lowest in the state, $6,188

(Bethlehem-Center, Washington County) to the highest in the state, $289,535 (Radnor Twp., Delaware

County).

4- Property tax millage rates in the districts range from 10.4900 (West Perry, Perry County) to

108.6400 (Bethlehem-Center, Washington County).

5- Median property taxes in the districts range from $672 (Bethlehem-Center, Washington County) to

$6156 (Radnor Twp., Delaware County).

6- State allocations to the districts in 2014-15 for Homestead Exclusions range from $132,378 (Austin

Area, Potter County) to $3,473,909 (Lower Merion, Montgomery County).

7- Proposed state allocations to the districts in 2016 for Homestead Exclusions range from $562,120

(Austin Area, Potter County) to $24,085,183 (Lower Merion, Montgomery County).

8- The number of home owners qualified to receive Homestead Exclusions in the districts ranges from

422 (Austin Area, Potter County) to 15,647 (Lower Merion, Montgomery County).

9- Homestead Exclusions in 2014-15 range from $68 (Millcreek Twp., Erie County and Susquehanna

Twp., Dauphin County) to $314 (Austin Area, Potter County).

10- Homestead Exclusions with proposed 2016 allocations to the districts range from $490 (Millcreek

Twp., Erie County) to $1654 (Radnor Twp., Delaware County).

11- Maximum Homestead Exclusions allowed under state law range from $336 (Bethlehem-Center,

Washington County) to $3078 (Radnor Twp., Delaware County).

12- Homestead Exclusion increases attributable to 2016 allocations to the districts range from $159

(Austin Area, Potter County) to $1369 (Radnor Twp., Delaware County).

13- It’s impossible to predict how the Wolf administration’s proposed increases of the income tax rate,

the sales tax rate, and state allocations to school districts for homestead exclusions would affect

individual home owners without doing the math. Tax-related consequences for individual home

owners depend on their income and what district they live in because districts differ considerably with

respect to median property tax (which depends on median assessed property values and property tax

millage rates -- both highly variable from district to district -- and which determines the maximum

value of the homestead exclusion that qualified home owners in any district can claim).

14- The 17 districts can be divided into 8 groups based on taxable income levels at which home

owners’ combined tax (i.e., income, sales, and property) would increase due to implementation of

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Gov. Wolf’s proposals. Group A: Home owners with incomes of $40,000 or more in Austin Area,

Bethlehem-Center, Philipsburg-Osceola, Mifflin County, and Millcreek Twp. Districts would have

combined tax increases ranging from $32 to $322 for the $40,000 level and from $544 to $832 for the

$100,000 level. Home owners in those districts with incomes of $36,000 or less would have combined

tax decreases ranging from $1058 to $1438. Group B: Home owners with income of $45,000 or more

in the State College Area district, and renters state-wide, would have combined tax increases ranging

from $12 for the $45,000 level to $493 for the $100,000 level. Home owners and renters with income

of $40,000 or less would have combined tax decreases ranging from $19 for the $40,000 level to

$1431 for the $36,000 level. Group C: Home owners with income of $60,000 or more in the Derry

Twp. district would have combined tax increases ranging from $31 for the $60,000 level to $351 for

the $100,000 level. Home owners with incomes of $50,000 or less would have combined tax

decreases ranging from $35 for the $50,000 level to $1541 for the $36,000 level. Group D: Home

owners with income of $70,000 or more in the Bald Eagle Area, Penns Valley, Penn Hills,

Susquehanna Twp., and West Perry districts would have combined tax increases ranging from $30 for

the $70,000 level to $373 for the $100,000 level. Home owners in those districts with income of

$60,000 or less would have combined tax decreases ranging from $3 for the $60,000 level to $1602 for

the #36,000 level. Group E: Home owners with income of $75,000 or more in the Big Spring district

would have combined tax increases ranging from $5 for the $75,000 level to $226 for the $100,000

level. Home owners with income of $70,000 or less would have combined tax decreases.ranging from

$28 at the $70,000 level to $1666 at the $36,000 level. Group F: Home owners with income of

$90,000 or more in the Bellefonte Area district would have combined tax increases ranging from $27

for the $90,000 level to $116 for the $100,000 level. Home owners with income of $80,000 or less

would have combined tax decreases ranging from $73 for the $80,000 level to $1776 for the $36,000

level. Group G: Home owners with income of $100,000 or more in the Carlisle Area district would

have combined tax increases of $21 or more. Home owners with income of $90,000 or less would

have combined tax decreases ranging from $68 for the $90,000 level to $1871 for the $36,000 level.

Group H: Home owners with income of $100,000 or less in the Radnor Twp. and Lower Merion

districts would have combined tax decreases ranging from $323 for the $100,000 level to $2268 for

the $36,000 level.

15- The Taxpayer Relief Act, Special Session Act 1 of 2006 includes a Byzantine procedure

(sometimes referred to as a ‘formula’) for allocation of state revenues to Pennsylvania school districts

for their use with Homestead Exclusions to reduce property taxes. According to explanatory material

provided by the state, the procedure “is designed to take equity into account – sending the most state

resources to the communities with the greatest tax burden and least local wealth.” Two such

communities, with respect to least local wealth, are the Austin Area and Bethlehem-Center districts.

Austin Area has by far the lowest adjusted personal income in the state and a median assessed property

value that ranks in the lowest 25% of districts. Stats for Bethlehem-Center are the reverse of Austin

Area: the lowest median assessed property value in the state and mediocre adjusted personal income.

Under these circumstances, it’s odd that even with the additional state largesse proposed by the Wolf

administration ($562,120 for Austin Area and $2,904,465 for Bethlehem-Center), home owners in

both districts with income of $40,000 or more would have not tax relief but combined tax increases.

16- It’s even more surprising that home owners in the Lower Merion and Radnor Twp., districts with

income of up to at least $100,000 would have combined tax decreases, i.e., tax relief. Lower Merion

has the second highest adjusted personal income and second highest median assessed property value in

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the state. Radnor Twp. has the highest median assessed property value in the state and only 12 of 500

districts in the state have higher adjusted personal income..

17- Gov. Wolf has asserted “My plan…reduces the total tax burden on the average middle-class home

owner….” (Source:

http://www.pennlive.com/politics/index.ssf/2015/03/gov_tom_wolfs_presents_legisla.html%29

Neither he nor other members of his administration who have made that claim have explained what

they mean by “average middle-class home owner.” I decided that hypothetical home owner could be

one whose income is the same as the median household income for the county in which he/she resides.

With that concept in mind, we should note that home owners in the Austin Area, Bethlehem-Center,

Mifflin County, Philipsburg-Osceola, Millcreek Twp., and State College Area districts with income

lower than the median household income for the respective counties would, under the Wolf plan, have

combined tax increases, not tax relief. The devil is in the details as they say, and those details refute

the Wolf administration’s primary mantra.

18- The Wolf administration’s Education Department maintains a web site

(http://www.schoolsthatteach.com/) that prominently displays another reassuring claim: "The

governor's budget also includes a historic $3.8 billion in property tax relief and cuts property taxes by

more than 50 percent for the average homeowner." The site does not define “average homeowner”.

The passage about cutting property taxes for that hypothetical person by 50 percent is not explained;

no facts are provided to support it. In the absence of Wolf administration facts, I used two from the

list included in this evaluation for each school district: (1) median property tax, presumably paid by

Mr. Average Home Owner in that district; and (2) Homestead Exclusion increase attributable to

Wolf’s proposed 2016 state allocation. Since the Homestead Exclusion increase that can be claimed

by individual qualified home owners can be and often is referred to as a property tax cut (i.e.,

reduction), simply divide that value by the value for median property tax to get a reduction percentage.

Those “property tax cuts” for the 17 school districts range from 16.8% to 44%, with a mean of 31%.

The upshot of these calculations: the claim on the Education Department’s web site significantly

exaggerates property tax relief attributable to Wolf administration proposals.

19- There’s a practical reason to seriously consider modifying procedures related to homestead

exclusions or abolishing homestead exclusions entirely: they sometimes produce results that are

unexpected, clearly unfair, and contrary to the underlying rationale for the homestead exclusions, i.e.,

“sending the most state resources to the communities with the greatest tax burden and least local

wealth.” For example, consider the Bellefonte Area and Philipsburg-Osceola districts. The

Philipsburg-Osceola district has a lower adjusted personal income, a lower median assessed property

value (i.e., tax base), a lower state allocation for homestead exclusions in 2014-15, and a lower

proposed state allocation for homestead exclusions in 2016. If home owners in one of the two districts

are “disadvantaged”, it’s in Philipsburg-Osceola. The rational expectation is that the Wolf

administration proposals would benefit the Philipsburg-Osceola district home owners to a greater

extent than Bellefonte district home owners. But, contrary to that expectation, as detailed in

Summary & Conclusions paragraph 14 Group A, Philipsburg-Osceola district home owners with

income of $40,000 or more would have a combined tax increase (a greater “burden”), whereas

Bellefonte district home owners at all income levels below $90,000 would have a combined tax

decrease (tax relief). Philipsburg-Osceola home owners who believe the Wolf administration’s claims

and support its proposals may find they’ve taken the bait and then been “switched”. The “switch”

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from expected tax relief to actual tax increases may be inadvertent, due to the complex procedure for

state homestead exclusion allocations (Section 505(a)(3) of the Taxpayer Relief Act, Special Session

Act 1 of 2006) or to calculation of the homestead exclusion that each qualified home owner may

claim, but that won’t be much consolation to those home owners when they get their tax bills.

20- Anticipated effects of the Wolf administration proposals in Lower Merion and Radnor Twp.

districts can be mentioned again (see Summary & Conclusions paragraph 14 Group H and paragraph

16) as examples of consequences that are unintended. Those districts are very well positioned on the

socioeconomic spectrum, by many if not all metrics one might consider. In accordance with the

underlying rational for homestead exclusions, and Gov Wolf’s mind-set that involves the “rich”

always paying their “fair share”, my expectation was that most home owners in those districts would

have combined tax increases attributable to his proposals. Doing the math revealed that contrary to

that expectation, all home owners in those two districts with incomes up to $100,000 would instead

have combined tax decreases, i.e., tax relief. That circumstance would not occur in any of the other 15

districts, even though all of them are lower on the socioeconomic spectrum than Lower Merion and

Radnor Twp.

20- There’s also a philosophical reason for abolishing homestead exclusions. They entail too much

decision-making by individuals who are too far removed from the taxpayers. Decisions about property

taxes should be made by elected members of school boards and county governments. If voters choose

wisely, those members will understand that wealth inequality, which some people, including Gov.

Wolf, find so alarming, is not a flaw in America’s social fabric but rather the natural state of affairs in

open societies, the consequence of countless decisions made by individuals – taxpayers and their

elected representatives -- throughout their lives. State or federal government lacks the responsibility,

the moral authority, and the moral clarity to eliminate it fairly.

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End