Bill Eliminating Property Taxes Rejected In Harrisburg

A bill that would have eliminated property taxes in Pennsylvania was narrowly rejected by the Senate Monday night.

The Associated Press reported that the preliminary vote tied at 24, but Lt. Gov. Mike Stack broke the deadlock in a vote against it. The vote came after more than an hour of debate, the AP said.

The bill, called The Taxpayer Relief Act, would have completely eliminated $14 billion in school property taxes. The revenue would have been replaced with higher state sales and income taxes.

According to figures from PA Independent, under the bill, personal income tax would have gone from 3.07 percent to 4.34 percent. State sales and use tax would have gone from 6 percent to 7 percent. Plus, the number of taxable transactions would have increased, PA Independent reports.

Monday’s vote may not be the end of the Taxpayer Relief Act, however. One co-sponsor was absent from Monday’s vote and a recently-elected candidate is expected take office later in the week, the Associated Press reports.

A spokesperson for the House Democrats told the Inquirer he did not believe it would pass the House, where a similar bill was defeated in 2013.

Numerous organizations are opposed to the bill, including the Pennsylvania Chamber of Business and Industry, the Pennsylvania Bar Association, the NAACP, according to the Associated Press.