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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.
2
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.
3
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
QuickFind
___________________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
20
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
QuickFind
______________________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.
QuickFind
End