The plain truth and facts about HB 1275

Why is Reform Necessary?

•         Antiquated taxation system

•          Property taxes inherently arbitrary and unfair

•          Inability to pay property tax bills

•          Out-of-control spending

•          Lack of effective education cost controls

•          Educational inequities

•          Projected cost of education

House Bill 1275    The School Property Tax Elimination Act

•         Completely eliminates school property taxes on homesteads/farmsteads over a four year phase-out period.

•          Eliminates local school EIT (0.5%) and nuisance taxes.

•          Funded through an expansion of the SUT at 6% to include more services; does not raise the rate.

•         Raises the state PIT 0.85% from 3.07% to 3.92%; net increase is 0.35%.

SUT Key Exemptions 

•          All food and clothing currently not taxed

•          All items covered by the food stamp and WIC programs

•          All residential utilities and heating fuels

•          Health services – doctors, dentists, hospitals

•          Five major professional services including legal

•          All prescription drugs

•          Public transportation

•          Core business-to-business services

•          Sale for resale, manufacturing wholesale purchases

•          Trucking

•          Advertising

School funding Eliminates taxing ability of local school boards

•          All school districts “held harmless”

•          Dedicated Education Operating Fund (EOF)

•          Eliminates unfunded mandates

•          Educational equity for rural, urban, fast-growing districts

•          Minimum per-pupil funding for poorer districts

•          Local EIT or PIT by no-exception referendum only

Constitutional Amendment

Companion legislation to the School Property Tax Elimination Act of 2007 provides for a constitutional amendment which GUARANTEES that, once eliminated, school property taxes would be gone forever and that a future legislature could never re-institute the taxing of our properties.  This amendment NOT REQUIRED for implementation of the SPTEA.

How can you help?

•         Get Involved! This can be accomplished ONLY with taxpayer support.

•         Spread the word to others about HB 1275,

•          Encourage others to subscribe for PTCC e-mail updates click here.

•          Frequently write or call your Representative or Senator asking for their support for HB 1275 and to oppose all ineffective “relief” schemes.  Call Becky Heller @570-594-7179 or Robert Runyon @ 570-752-2959 for more info.