In response to a legislative request, the IFO analyzed data from the American Community Survey (ACS) to estimate the share of school property taxes paid by households in which the householder (or spouse, if applicable) had attained the ages 60 or over, 65 or over and 70 or over. The analysis applies the shares derived from the ACS to estimated school district property tax collections attributable to homestead properties for FY 2015-16 to further estimate the dollar amounts paid by such households.
As an extension of its recent research relating to property taxes, the IFO has released additional data regarding homestead property. Estimates for the numbers and assessed values of homestead properties by county are based, in large part, on the results of a survey of county assessment offices. The County Commissioners Association of Pennsylvania provided valuable assistance by coordinating the survey. Data for Philadelphia has been adjusted based on new information provided by the Philadelphia Department of Revenue.
In response to a legislative request, the IFO collected and analyzed certain data related to school property taxes and potential replacement revenues. Data for Philadelphia in Table 3 has been adjusted based on information provided by the Philadelphia Department of Revenue.
Throughout May, Director Matt Knittel and Deputy Director Mark Ryan will make five presentations on the potential implications of school district property tax reform. The events are sponsored by the Pennsylvania Economy League and will take place at the various locations listed below.
Click the following links for additional details:
READING Thursday May 4th 7:30-9:00am
WILLIAMSPORT Friday May 5th 12:00-1:30pm
YORK Thursday May 11th 12:00-1:30pm
WILKES-BARRE Friday May 12th 12:00-1:30pm
LEHIGH VALLEY Friday May 19th 12:00-1:30pm
The IFO has released new projections regarding school property tax elimination. The document projects the school property tax revenues that would be eliminated, and thus subject to replacement, under legislation that may be introduced in the near future (the relevant parameters are summarized in the document). The projection builds upon a school property tax forecast the IFO released in January of this year.
Director Matt Knittel and Deputy Director Mark Ryan made a presentation to the Pennsylvania School Boards Association (PSBA) regarding the current proposal and forecasts for school district property taxes in Pennsylvania.
*Updated February 13, 2017
Letter updating the IFO's forecast of school district property tax collections for FY 2015-16 through FY 2021-22. The letter also includes projections of school district debt service payments and earned income tax collections for FY 2015-16 through FY 2021-22.
Total school property tax collections for FY 2015-16 ($13.6 billion) and FY 2016-17 ($13.9 billion) are estimated using millage rates published by the Pennsylvania Department of Education. For FY 2017-18 through FY 2021-22, collections are projected based on a forecast of the Act 1 index and exceptions. During that period, total school property tax collections are projected to grow by an average annual rate of 3.5 percent, reaching $16.5 billion by FY 2021-22.
Prior reports / references: (1) 2013 IFO analysis of HB / SB 76 and (2) 2014 update of the school property tax forecast.