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First cut: Without tax shifting, Pennsylvanians will get relief
Monday, April 28, 2008

It's been a long time coming, but Pennsylvanians' next school property tax bill, to be sent in July, will contain the first break due to casino gambling. Around the state, that tax cut will average $169 per home or farm -- not exactly a lottery jackpot, but still part of a $613 million package of property tax relief delivered by the state's first seven slots casinos.

While some taxpayers are bound to grumble about the size of the initial break, the relief will only grow in subsequent years as the rest of the 14 authorized gambling operations open for business. Elderly Pennsylvanians with incomes up to $35,000 will be eligible for an even bigger break -- up to $650 in rent or tax rebates -- because of revenue from the state lottery fund. (Philadelphians will get a reduction in the 4 percent wage tax instead of the property tax.)

This is good news for all Pennsylvanians because the initiative, put forth by Gov. Ed Rendell, didn't require a tax shift to accomplish -- no legislative "deal with the devil" to raise the sales tax or personal income tax in exchange for reducing the school property tax. All that was needed was the arrival of slots casinos and thousands of willing players, many of whom were already gambling at venues in nearby states.

The property tax savings will be broad-based, tangible evidence of this new form of legal entertainment. While the amount of savings will vary by school district, every homeowner in a given district will get the same amount of tax relief. (In early May, the Rendell administration plans to list the size of the tax break headed to each school district.)

While lawmakers and talk-show hosts continue to debate the best way to cut property taxes, Gov. Rendell will be delivering on his promise of lower school taxes in three short months. Given steady play at the new casinos, it's a safe bet there will be more to come.

First published on April 28, 2008 at 12:00 am