Rendell: $200 in property tax help for Pa. homeowners

Pennsylvania homeowners outside of Philadelphia will for the second year receive at least $200 in property-tax reductions from slot-machine gambling revenue, Gov. Rendell said yesterday.

Speaking at a news conference in Pittsburgh, Rendell said that despite the recession, the amount of gambling revenue available for tax relief has remained stable, because the state's casino venues have proved to be competitive with neighboring states', including New Jersey.

He said the troubled economy makes property-tax rebates even more important to struggling homeowners this year.

"The national recession makes our property-tax relief law more valuable than ever for senior citizens on a fixed income and for families who may be suffering due to a layoff or a cut in working hours," said Rendell. "And property-tax relief will also benefit our small businesses, since the $770 million that Pennsylvanians will save this year is money that will be reinvested in the local economy."

He said Budget Secretary Mary Soderberg would certify tomorrow that there is $770 million in the tax-relief fund.

Last year, slots revenue funded rebates for 2.7 million Pennsylvania households, and in Philadelphia provided for a reduction in the wage tax.

Property-tax bills for roughly 110,000 lower-income senior citizens will be eliminated this year, as they were last year, and many more seniors with incomes of $35,000 or less will receive additional rebates of up to $975.

The exact number of Pennsylvania households receiving rebates this year will not be known until May 1, when counties report the number of homeowners who signed up for them by replying to notices in the mail. In early May, the amount of property-tax reductions in each school district will be available online.

The 2006 Tax Payer Relief Act, which designated gambling revenue to reduce property taxes, also limits school districts' ability to raise taxes.

"I have called on school boards to go even further to avoid any property-tax increases by tapping the federal stimulus funding that I have proposed dedicating to our schools," Rendell said. "It is important that the General Assembly target these resources to education as the federal law intends. Otherwise, property taxes will rise dramatically at a time when it is hardest for Pennsylvanians to pay, and the quality of our schools will suffer."

Rendell said homeowners could expect additional property-tax reductions once the other licensed casinos open, particularly the two in Philadelphia and one in Pittsburgh.