Senate Democrats advance $4.4B property tax relief plan

Written by The Associated Press | Jun 24, 2015 3:11 PM

Photo by AP Photo/Matt Rourke

(Harrisburg) -- State Senate Democrats are backing a plan to cut school property tax bills in exchange for higher state taxes on income, retail sales and tobacco products.

Senate Minority Leader Jay Costa says his caucus wants to inject life into an issue that also is important to Governor Tom Wolf, but has stalled in the Republican-controlled Senate.

The Democrats' $4.4 billion plan differs from Wolf's plan and a plan that passed the Republican-controlled House, most notably in how it distributes property tax relief.

Democrats say their plan would eliminate school property tax bills for 2 million homeowners. Under the bill, each homeowner would get a check for the total amount of their tax bill, up to $1,990.

The plan also would include $500 annual rebates for low-income renters.

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