HARRISBURG -- With a House-Senate property tax reform panel still stuck on the 10 yard line, Gov. Ed Rendell is expected to join the huddle.
The House-Senate panel, chaired by Rep. Lynn Herman, R-Centre County, said it would like to have the governor directly involved, and his aide, Kate Philips, said he's likely to do so.
The panel said today that it's about "90 percent there'' toward hammering out a bill that would provide modest tax relief, mostly to senior citizens over 65.
Seniors making no more than $15,000 a year are now eligible for property tax rebates or rent rebates of up to $500 a year. The panel wants to expand that, letting seniors earning up to $30,000 be eligible for rebates of up to $650 a year.
But doing so would cost the state an estimated $200 million to $250 million a year, said Rep. Mike Veon, D-Beaver Falls, another member.
That money would, for the first couple years, come from the state Lottery Fund, which is doing well because of Powerball and other games.
When the projected $1 billion in slots revenue starts coming in, within two or three years, the Lottery Fund would be paid back, Mr. Veon said.
But the panel hasn't fully agreed yet on how much the tax and rent rebates will cost and how fast to repay the lottery fund.
The $1 billion in slots revenue would also pay for statewide tax reductions averaging $200 to $300 a year for homeowners, depending on which school district they live in.
The tax-relief program also will include a tax-shifting element, where voters in all but three school districts could elect to raise their earned income tax and lower their property tax.
Pittsburgh, Philadelphia and Scranton would not be eligible for this shift because their earned income taxes are already high, panel members said.
Mr. Herman said he hopes to meet with House and Senate leaders, along with Mr. Rendell, tomorrow, with a vote possible in the committee Wednesday. Approval by the full House and Senate will then be needed.
More details in tomorrow's Pittsburgh Post-Gazette.
First Published: April 24, 2006, 4:00 a.m.