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State lawmaker proposes eliminating school property taxes, shifting burden to the state

ALLEGHENY COUNTY, Pa. — Homeowners across Pennsylvania are paying billions in school property taxes, but a new proposal aims to eliminate those taxes and shift the burden to the state.

Currently, school real estate taxes account for $17 billion a year in funding for public education. In Hempfield Area School District, more than 60% of the operating budget relies on local property taxes.

For some, like Hampton resident Rose Furrel, the school taxes are a major financial strain. “That’s more than my property taxes; I pay probably six times school tax as I do for my property tax,” Furrel said.

Under a proposal from Sen. Chris Gebhard (R-48), Pennsylvania could eliminate school property taxes through a constitutional amendment. If voters approve the amendment, funding for schools would come from the state. However, questions remain about how the state would make up for the lost billions of dollars.

Gebhard told Channel 11 some proposals on the table include raising the state income tax from 3.07% to 4.5% or increasing the statewide sales tax from 6% to 8%. But some residents, like Furrel, are hesitant. “I would be willing to pay more on sales tax if it’s on items I don’t consider essential. I don’t want to pay more tax on my groceries, but I would be willing to pay more on my clothes or shoes,” she said.

School districts like Hempfield depend on local taxes to operate, and Superintendent Dr. Mark Holtzman said the state must have a solution in place to replace the funding if the amendment passes. “Most districts won’t be able to keep the doors open without that money,” he said.

Holtzman also believes charter school reform could be part of the solution to fair funding, citing the growing impact of charter schools on district finances, plus rising retirement system costs.  He said charter schools is something that impacts most districts across the state and could help with the fair funding formula that was deemed unconstitutional two years ago.

“If the Pennsylvania public would vote for this and be in favor of this, it would force the General Assembly’s hand to come up with an equitable solution to this problem,” Gebhard said.

To place the amendment on the ballot, it must pass two sessions in both the Pennsylvania House and Senate. If successful, the earliest it could appear before voters is the November 2027 general election.

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