HARRISBURG, PA —The Pennsylvania House approved House Bill 504 on May 21, which would significantly reduce school property taxes across the Commonwealth through a dollar-for-dollar tax shift.

House Bill 504 would change the personal income tax rate to 3.7% and the sales and use tax rate to 7%, without expanding it to include currently exempt items. The plan would generate nearly $5 billion in total relief and would include a $125 million expansion of the property tax and rent rebate program, which benefits low- to middle-income senior citizens and disabled residents across the state. The plan includes cost controls to make sure the tax reductions stay in place, ensuring that residents across the state see long-term relief.

Since every new dollar generated as part of this plan would go toward property tax relief, it would increase the Commonwealth’s commitment to its schools while reducing the tax burden to property owners.

Legislation to reduce the property tax burden on homeowners in the state is supported by Gov. Tom Wolf, but it is not clear how the Senate will act. The bill has support from some quarters such as the Pennsylvania Farm Bureau, but has been opposed by many businesses because they say the increased sales and income tax will make it too expensive to continue to do business in the state.

The bill now goes to the Senate for consideration, and the state budget is due by the end of June.