Experts disagree on impact of gambling revenue on school tax bills
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In 2004, during the debate over whether to legalize gambling in Pennsylvania, Gov. Ed Rendell predicted that slot machine revenue one day would be able to cut school property taxes by an average of 23 percent.
About 71/2 years and 10 casinos later, many homeowners are still waiting for that day.
While slot machine gambling is delivering promised tax relief, it doesn't appear that many residents locally are getting close to the 23 percent savings predicted by the former governor -- or even the 15 percent to 20 percent estimated when slots gambling was legalized in July 2004.
This year, the average reduction statewide will be $198. It might buy a nice dinner out or a cheap flat screen TV, but chances are it won't come close to covering a school tax bill.
"In reality, I think in the Bucks County area, it might be 7 to 8 percent at most. When you're talking about a $4,000 to $5,000 tax bill and you're getting $250, that's 5 percent," said state Rep. Paul Clymer, a Bucks County Republican who opposed legalized gambling.
In Allegheny County, based on data from the state Department of Education and the Allegheny County website, it doesn't appear as if many property owners are seeing reductions anywhere close to 23 percent.
For instance, a property owner with a $100,000 house in South Fayette is seeing his school tax bill cut by 5.8 percent. In Bethel Park, it's 6.5 percent, and in Moon, 6.2 percent. In McCandless, part of the North Allegheny School District, it's 7.3 percent. In Penn Hills and Plum, it's 7.3 percent and 9.4 percent, respectively. In Carnegie, it's 6.8 percent.
Some, however, are making out better. In the city of Pittsburgh, the reduction is $269. That equals about 19.3 percent of the school tax bill for a $100,000 house.
In Duquesne, it's 16.6 percent on a $100,000 house. But on the median value of a home in that city of $16,700, it's enough to cover the entire school tax bill. In McKees Rocks, part of the Sto-Rox district, it equals 12.5 percent on a $100,000 home.
But for many others, the amount of school tax relief being provided through slots gambling appears to be more of a pittance compared to what originally was promised.
One who won't argue with that notion is state Rep. Bill DeWeese, the Waynesburg Democrat who helped to usher through the bill that legalized gambling in 2004.
First Published February 1, 2012 12:00 am
