Slow go on property tax reform
House, Senate form committee to try and resolve differences
By Dave Pidgeon
Updated Oct 03, 2008 11:08

"We are helping the truly needy," state Senate Majority Leader David "Chip" Brightbill said Wednesday. "The House has not yet passed a plan that works."

A month ago, the House and Senate passed competing plans to stem rising school property taxes, months after Gov. Ed Rendell called a special session of the Legislature to address the issue.

A recently named committee of six legislators -- three senators, including Brightbill, and three House members -- is charged with the responsibility of drawing up a compromise between the two plans.

The committee has not yet convened, Brightbill said, but staffers for the six lawmakers have been talking.

State Rep. Mike Sturla, a Lancaster city Democrat, said Republicans, who control both chambers of the Legislature, are stalling so conservative initiatives -- like a marriage amendment to the state constitution -- dominate the political conversation this election year.

"They have a majority" in the House and Senate, Sturla said. "Any day they want to, even if we didn't want to, they could move this (property tax reform). We want to do it. ... It's not their caucuses' priority."

Legislators on Wednesday said the House plan is essentially dead because the Senate won't budge from its package, which would use revenue from slots machines and increased earned income taxes to offset property taxes.

The Senate also calls for doubling the size of a property tax and rent rebate program for seniors.

State Rep. Scott Boyd, a Lampeter Republican, said parts of the House plan -- which would use gambling revenue and an expanded sales tax to offset property taxes -- might be salvageable.

"There may be some elements of it that can be put into an ultimate, final (package)," Boyd said, "but I don't know what parts those might be."

Sturla said the Senate plan does not completely solve the property tax issue because it provides minimal relief for most taxpayers.

"I would like a plan to go farther, but I sense we'll end up with something closer to the Senate plan because they've dug in their heels," he said. "They set the bar low."

Critics of the House plan said it would drive business out of the state by taxing items previously not taxed, such as advertising and attorney services.

Brightbill challenged House members to draw up something new.

"We believe the House conferees ought to come forward with either some proposed changes in our plan or some other plan they think they can pass," he said.

Gov. Ed Rendell recently has held several press conferences at the homes of senior citizens, urging the Legislature to pass a relief package.

Although Rendell championed expanded gambling laws to provide an estimated $1 billion in property tax relief and has pledged support for the Senate's plan, he has come under fire from Republican challenger Lynn Swann.

Swann, who will appear at the Lancaster County ACTION banquet Friday, has slammed Rendell for not providing property tax relief during his first term in office.

Dave Pidgeon's e-mail address is dpidgeon@lnpnews.com.
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