Section 672.1 of the Pennsylvania Public School Code creates a taxation system that is unfair to property taxpayers. This archaic and complex system – is difficult to explain to citizens – leads to wide and disparate millage swings that can result in tax increases that are in the double digits, well beyond limits set forth by the Act 1 index.
 
The purpose of Section 672.1 is to provide uniform and fair taxation for taxpayers in multi-county school districts. However, because this law has been largely untouched since its inception in 1949, it is not consistent with other laws – most importantly Act 1 – and, as such, fails to meet its intended purpose.
 
Act 1 is a property tax relief bill passed by the Pennsylvania legislature in 2006, which set a cap on the amount a school district can raise property taxes. The cap is calculated with an eye toward allowing school districts to cover normal inflationary cost increases. If a school district wishes to raise taxes above that cap, the increase must be voted on in a district-wide referendum. Because Section 672.1 predates Act 1, there exists an unintentional consequence that often leads to significant tax increases above the Act 1 index. This is something that neither Section 672.1 nor Act 1 intended to take place.
 
Legislation we plan to introduce is simple and comes with no impact to the Commonwealth's budget. By amending Section 672.1 to allow multi-county school districts to apply the Act 1 index equally and fairly to both counties (just as single county systems apply to taxpayers in their one county), this would result in:
  This legislation is a companion to a bi-partisan House Bill that will be introduced by Representatives Christina Sappey, Chris Pielli, and Craig Williams.

Please join us in addressing this challenge for 88 school districts in the Commonwealth by becoming a co-sponsor.