HARRISBURG -- After 30 years of futility and failure, the General Assembly is ready to approve a measure that would bring modest property tax relief to Pennsylvanians.

		Property tax reform at a glance Highlights of the tax relief bill: Immediate increases in tax rebates for low-income and senior citizen property owners and renters. Within two years, all homeowners to get an estimated $200 to $400 in tax relief from slot machine revenue. Voters in most school districts can opt for additional property tax reductions by approving an increase in their earned income tax. "Back-end" referendum allows voters to approve or reject school district budgets that outpace inflation.

The state Senate is set to vote today on a conference committee report that would provide immediate tax relief to low-income senior citizen homeowners and renters for the 2006-07 fiscal year, which starts July 1.

Within two years, once slot machine revenue begins rolling in, the bill would provide modest tax relief to all homeowners in the state.

The bill that goes before the Senate today was unanimously approved last night by a House-Senate committee that has worked for six weeks to hammer out a tax relief bill.

Sen. Robert Mellow, D-Lackawanna, one of the six panel members, predicted the property tax measure will pass the Senate today and move on to the House for a vote tomorrow.

House members also expect it to be approved, though probably only after some complaining that it doesn't provide as much tax relief as some legislators would like.

Gov. Ed Rendell, who praised the conference committee's action last night, is expected to sign the bill tomorrow if it passes both chambers.

"Property tax relief is finally on the way," Mr. Rendell said in a statement last night. "This bill will give unprecedented tax relief to those who need it most, our seniors living on fixed incomes."

Currently, 339,000 people 65 and older, with incomes of no more than $15,000 a year, are eligible for $500-a-year property tax or rent rebates.

The new bill would add 422,000 additional seniors, 39,000 of them in Allegheny County, Mr. Rendell said. The bill also would increase the annual income limit for seniors to $35,000 and increase the maximum relief for most recipients to $650 a year.

Seniors whose property tax bills still consume 15 percent of their income after the rebates would get additional relief of up to $325, for a maximum rebate of $975.

Property tax relief was one of the major points in Mr. Rendell's agenda when he ran for governor in 2002, and he's been trying to get something enacted to help him win re-election in November.

Many legislators, especially those who face primary challenges on May 16, also are anxious to leave Harrisburg tomorrow with something to show voters to take their minds off the legislative pay raise fiasco of July.

Two tax relief panel members, Sen. David Brightbill, R-Lebanon, and Rep. Mike Veon, D-Beaver Falls, are especially under the gun, with tough primary races, and need the tax relief bill to boost their re-election chances.

For the first two years, the legislation would pay for the expanded senior citizen rebate program by using $200 million from an existing surplus in the state Lottery Fund.

Under the bill, elderly persons with the lowest incomes, up to $8,000 a year, would get $650 a year in tax or rent rebates. For seniors earning up to $15,000 a year, the maximum rebate would be $500.

For the first time, seniors earning up to $18,000 year would get $300 rebates, and those earning up to $35,000 a year would get $250 rebates.

In about two years -- once the state's 14 new casinos are fully operational -- the $200 million from the Lottery Fund would be replaced with proceeds from the state's new Gaming Fund.

Besides the expansion of tax relief for senior citizens, the gaming revenue -- estimated by Mr. Rendell at up to $1 billion a year -- would give all homeowners an estimated tax break of $200 to $400 a year, depending on which school district they live in.

"Every homeowner will get some tax relief once the gaming proceeds are received," said Mr. Veon, a supporter of expanded gambling in the state.

The conference committee bill contains another major feature, tax shifting. It would give voters in all but three school districts the option of additional property tax relief by increasing the local earned income tax.

Voters would be able to vote on tax shifting in a May 2007 referendum.

The tax shift would not apply to three school districts -- Pittsburgh, Philadelphia and Scranton -- where the earned income tax rate already is at least 3 percent.

The bill contains a $20 million fund to ease property taxes for lower-income homeowners in those cities. Homeowners making up to $30,000 a year would be eligible for supplemental payments to further lower their property taxes beyond what the gaming money allows.

Another major element of the conference committee bill is back-end referenda.

Voters could say "yes" or "no" to any proposed school budget that exceeds an annual rate of inflation, probably about 3 percent. The first such referenda would be in May 2007.

In calculating the percentage increase of a school budget, certain expenses won't be counted. Exemptions would include school construction costs, certain employee pension costs, costs for special education and spending required to meet mandates from the state or federal government.

Mr. Mellow admitted that some critics will say the bill doesn't provide enough tax relief. He called it "a major first step" and noted it has taken the Legislature decades to get this far.

Some legislators wanted to broaden the base of the sales tax, by taxing food and clothing, to raise additional millions of dollars to use in further lowering -- or even eliminating -- property taxes.

Mr. Mellow said he opposed such a move, calling the sales tax regressive, hurting poorer people in particular.

"This bill is the first time where we'll have comprehensive tax reductions affecting every school district in the state," he said.

The Legislature still has the option next year of making further property tax cuts if it can find the revenue to do so, he said.