Senate Republican News Home

Tax Relief

The Senate approved significant reforms to the Emergency and Municipal Services Tax, with legislation that has been signed into law.

The Senate concurred with House amendments to Senate Bill 218 (now Act 7 of 2007), sponsored by Senate Finance Committee Chairman Pat Browne (R-Lehigh).

The new law ends the lump-sum maximum payment of $52 and set specific restrictions on how taxing entities may use revenues raised by the levy. It also requires that the tax be withheld on a payroll-period basis with a maximum deduction of $1 per week. Employers will be required to send collections on a quarterly basis. Those earning $12,000 or less per year are exempted from paying the tax.

Senate Bill 218 renames the tax as the more accurate “Local Services Tax” and requires that a minimum of 25 percent of the total revenue collected must go to support emergency services including police, fire and emergency medical services operations. The remaining revenues could be used for road construction and maintenance, and property tax relief.

The Senate Finance Committee, chaired by Sen. Pat Browne (R-Lehigh), approved the Taxpayer Protection Act bill and Constitutional Amendment, designed to rein in state government spending.

Senate Bill 7, sponsored by Sen. Bob Regola (R-Westmoreland), is a proposed amendment to the Pennsylvania State Constitution that would limit state spending to the average inflation rate plus the average percentage change in state population over the three preceding years. Senate Bill 707, sponsored by Sen. Mike Folmer (R-Lebanon), would provide the same limitation, but not as a Constitutional Amendment.

To prevent the state from pushing spending requirements onto local taxpayers, the measures were amended to include a provision by Sen. John Eichelberger (R-Blair) stating that the spending limit would be decreased when funds are cut to a mandated service.

In addition to the spending limits in the Taxpayer Protection Act, the proposal also sets realistic restrictions on the use of any unanticipated revenues received by the Commonwealth. Specifically, 75 percent of any revenues exceeding the spending limits imposed by the bill would be returned to taxpayers. The remaining 25 percent would go directly into the Rainy Day Fund to help address unanticipated revenue shortfalls.

The Senate Banking and Insurance Committee, chaired by Sen. Don White (R-Indiana), and the Senate Finance Committee, chaired by Sen. Pat Browne (R-Lehigh), held a joint public hearing on the legality and practicality of Gov. Rendell's proposed tax on employers to support his health care plan.

The committees heard testimony from a national expert, who said a recent court decision involving a mandated health benefits program in Maryland means "an act of Congress" would be needed before Gov. Rendell's proposal could be enacted. In January 2007, the U.S. Court of Appeals for the Fourth Circuit affirmed a decision that invalidated Maryland's program citing that it clashed with the Employee Retirement Income Security Act of 1974.

Todd Anderson, Outside General Counsel for Retail Industry Leaders Association, said the Fourth Circuit Court's decision would directly apply to Governor Rendell's tax proposal.

Taxpayer Protection Act

2007 Budget Hearings Highlights and Summaries

Finance Committee Again Approves Tax Stimulus Package
The Senate Finance Committee today approved an amended House Bill that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators, according to Committee Chairman Senator Pat Browne (R-16).
(full story)

Committee Approves Bills to Close Property Tax Loophole
The Senate Finance Committee today (June 25) approved legislation designed to close a legal loophole that has resulted in property tax increases for many Pennsylvania homeowners, according to Committee Chairman Senator Pat Browne (R-16).
(full story)

Finance Committee Approves 100 Percent Tax Relief Bill
The Senate Finance Committee today approved legislation that would allow for a 100-percent homestead exemption, according to Committee Chairman Senator Pat Browne (R-16).
(full story)

Senate Approves Tax Stimulus Package
The Senate today approved a sweeping four-bill stimulus package that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators, according to Senator Pat Browne (R-16 and Chairman of the Senate Finance Committee), which has oversight powers over state tax matters.
(full story)

Finance Committee Approves Tax Stimulus Package
The Senate Finance Committee today approved a four-bill stimulus package that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators, according to Committee Chairman Senator Pat Browne (R-16).
(full story)

Mobilizing to Ease the Tax Burden
HARRISBURG – Most mobile homes are set on land the "homeowner" does not own. But like the home down the street, mobile home and house trailer owners still receive a property tax bill each year. 
(full story)

Senate Republicans Unveil Tax Stimulus Package
The Senate Republican Caucus today unveiled a sweeping stimulus package that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators.
(full story)
- Sen. Browne
- Sen. Corman
- Sen. Eichelberger
- Sen. Regola
- Sen. Vance
- Press Conference

Baker and Waugh Push Tax Credit Bills To Help Volunteer Firefighters and EMS Workers
Stressing the need to do more to recruit and retain volunteer firefighters and emergency responders, Senators Lisa Baker (R-Luzerne) and Mike Waugh (R-York) are working to provide tax credits to fire and emergency service volunteers and their employers.  Their plan, which was introduced today, includes: 
(full story)

Senator Regola Introduces Two Tax Cut Measures
State Senator Bob Regola (R-39) today introduced two bills during the General Assembly’s Special Session on Energy that would provide tax breaks for individuals and businesses that take steps to improve their energy efficiency and reduce pollution.
(full story)

Committee Approves Tourist Industry Relief Bill
The Senate Finance Committee today approved Senate Bill 1012, a measure introduced by Senator Bob Regola (R-39) that would exempt Pennsylvania’s amusement and water parks from the local amusement tax.
(full story)

Committee Approves Economic Stimulus Bill
The Senate Finance Committee approved an economic stimulus measure on Wednesday (January 16), according to Committee Chairman Pat Browne (R-16).
(full story)

Rhoades to Introduce Legislation Limiting Local Government Assessment Appeals
Acting to close a legal loophole that has resulted in property tax increases for many Pennsylvania homeowners, Senator James J. Rhoades (R-29) introduced legislation to limit when a local government can reassess property.
(full story)

Rhoades Unveils the Property Tax Elimination Act
Encouraging his colleagues in the General Assembly to "let the people decide," Senator James J. Rhoades (R-29) unveiled his proposed Property Tax Elimination Act, a plan that would eliminate $9 billion in school property taxes if it is approved by the voters. 
(full story)

Local Government Package Aims to Save Taxpayer Money
As part of his efforts to provide local governments flexibility from state mandates and save taxpayers money, Senate Local Government Committee Chairman Bob Regola (R-39) today coordinated the introduction of a bipartisan 16-bill package raising  the levels at which municipalities must go through the formal bidding process when purchasing products or contracting for services.
(full story)

Sen. Browne's EMS tax reform headed to Governor
The Senate concurred with House amendments to Senate Bill 218 -- a measure introduced by Senator Pat Browne to bring about significant reforms to the Emergency and Municipal Services Tax -- and sent the legislation to the Governor for his signature.
(full story)

Committee Reports Taxpayer Protection Act
The Senate Finance Committee reported out the Taxpayer Protection Act bill and Constitutional Amendment, as well as a pair of bills that would provide income tax breaks for volunteer firefighters and EMS personnel, according to Committee Chairman Senator Pat Browne.
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Armstrong: Substantial Tax Hikes and Spending Increases Are Wrong for Taxpayers and the Economy
Governor Rendell's proposed state budget is the wrong prescription for the Pennsylvania economy and runs counter to public demands for fiscal restraint, according to Senate Appropriations Chairman Gib Armstrong.
(full story)

Governor Overstates Effect of Federal Funding on State Budget Woes
In his 2007 budget address, Governor Rendell put much of the blame on the federal government for the sizable gap between anticipated state revenue and the amount of money the Governor is pushing to spend.
(full story)

Governor's Jobs Tax Needs "Act of Congress"
While it would take an "act of Congress" for the Governor's proposed "Fair Share Tax" to avoid a legal challenge, the issue may be moot since the plan seems to have no support in the Legislature.
(full story)

OP-ED: Act 1 Rejection Shows Need for New Approach to Eliminate Property Taxes
As the only two members of the Senate who from the very beginning opposed Act 1of 2006, we laud the people of Pennsylvania for joining us in overwhelmingly rejecting the local tax referendum on May 15th.  With this vote, taxpayers have sent a clear mandate: A tax shift that only promises possible relief is not the answer to our property tax woes.  Our response: School property taxes must be eliminated.
(full story)