- What is meant by Tax Fairness?
Tax fairness means that taxes levied by local governments are based on the ability to pay.
2. Would property taxes be reduced?
If counties and other local governments are granted authority by the Governor and the legislature to levy alternate taxes, a county could reduce its property tax rate proportional to the revenue generated by new, fairer taxes.
3. Would a shift in taxes create a windfall or tax increase?
For any increase in revenue from a new tax, the county would reduce other taxes. At the county level, this means reducing the property tax. Spending is based driven by many factors, including local needs, obligations to carry out state and federal mandates and orders of the court. Local elected officials are accountable to their constituents, and increase taxes only as a last resort.
4. What is the county option sales tax?
The Governor's budget address proposed an optional 1 percent county sales tax to be levied at the option of local governments. Half of this revenue would be used at the county level, and half would be distributed to the townships, boroughs and cities within the county. Counties propose to use the majority of their share for property tax relief.
5. Why not repeal all property taxes?
Each community has a unique situation regarding its tax base. For some, property taxes may actually be the most equitable measure based on economic condition, rate of development and demographics. This is why counties favor choice among a menu of local taxing options with a corresponding reduction in property taxes.