Property Tax Relief: The Devil’s in the Details Karen Miller, Executive Director, Pennsylvania Economy League's State Office

3 Property Tax Relief: Gambling Toward Tax Reform – articles on Slots and Property Tax Reduction: Unfinished Business In the Game to Win Putting a Billion Dollars in Perspective In the Mix Gambling in Other States

4 Property Tax Relief: There’s a reason why – after decades – it’s still not a reality: The Devil’s in the Details.

5 Property Tax Relief: The Formula PI/ADM + MV/PI + STR + EM x ADM x NF 1,000 IF < MIN % RELIEF, ADD $$ IF > MAX % RELIEF, SUBTRACT $$ DIVIDE BY # QUALIFIED HOMES AND FARMS IF NECESSARY, ADJUST FOR HOMESTEAD EXEMPTION LIMIT = PROPERTY TAX RELIEF?

6 Property Tax Relief: $5:$1 Goal: $5 State Gambling Revenue for every $1 Increase in local Earned Income Tax –Minimum: less than $1 –Average: $3.79 –Maximum: $13.51 »Based on $600 million in gambling revenues

8 Property Tax Relief: Minimums and Maximums $63 million in state gambling revenues to boost school districts to minimum guarantee (10%) $13 million would not be distributed because of maximum limits (40%) »Based on $600 million in gambling revenues

9 Reading Based on formula $7.2 million After maximum limit $5.3 million Lower Merion Based on formula $55,190 total After minimum guarantee $7.3 million Property Tax Relief: A Tale of Two Districts »Based on $600 million in gambling revenues

10 Property Tax Relief: Per Student »Based on $600 million in gambling revenues

11 Reading Based on formula $503 per student $7.2 million After maximum limit $370 per student $5.3 million Lower Merion Based on formula $8.37 per student $55,190 total After minimum guarantee $1,111 per student $7.3 million Property Tax Relief: A Tale of Two Districts »Based on $600 million in gambling revenues

12 Property Tax Relief: Change in the State Share »Based on $600 million in gambling revenues

13 Property Tax Relief: The Devil’s also in the Winners and Losers.

14 Property Tax Relief: Still under discussion –Referenda – control and accountability for school directors –Minimum and maximum levels of property tax relief –Whether to require local income tax increase –Level of gambling revenues required –The who, where and how’s of the slots part of this package, and more…

15 Property Tax Relief: Still under discussion –Referenda – control and accountability for school directors –Minimum and maximum levels of property tax relief –Whether to require local income tax increase –Level of gambling revenues required –The who, where and how’s of the slots part of this package, and more…