Pa. Resumes Debate to Cut Property Taxes (www.forbes.com)

By MARK SCOLFORO 01.28.08, 4:14 PM ET

HARRISBURG, Pa. -

The quest for ways to lessen the multibillion-dollar burden of school taxes on homeowners has gone on in Harrisburg for decades, and the Pennsylvania House of Representatives was to resume the search Monday.

Debate on dozens of amendments to bills that would cut property taxes - and make up the money by increasing state income or sales taxes - was expected to begin in late afternoon and last well into the evening.

House Majority Leader Bill DeWeese, D-Greene, told a Pennsylvania Press Club luncheon Monday that Republican leaders have been "not inclined to deal aggressively" with the property tax issue for the previous 12 years.

"We are going to do just that, and I'm confident that there will be a series of very, very substantial votes this week," he said.

The House has to consider all amendments before a final vote on legislation can occur. That could result in sending legislation to the state Senate as early as Tuesday, but it would face an uncertain fate there.

DeWeese said he sensed less momentum and enthusiasm for changing the property tax structure among leaders of the GOP-controlled Senate.

Earlier this month, the House took the first step toward removing from the state constitution a provision that limits how much of residential property taxes the Legislature can eliminate. The measure would keep taxes in place for businesses and other commercial properties.

Officials say it would cost the state about $5.5 billion to eliminate property taxes for primary residences and farms, and another $5 billion to eliminate all property taxes. The current constitutional provision limits any reduction in residential property taxes to half the median assessed value of homes within a given taxing jurisdiction.

Most of the state's share of revenues from Pennsylvania's nascent slots gambling industry - an estimated $1 billion a year - is already earmarked for reductions in homeowners' property taxes and Philadelphia's wage tax, starting with the 2008-09 fiscal year.

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