The state House passed a bill Wednesday that would give school districts the option of imposing an elimination tax as a way of reducing dependence on the property tax.
Authored by York County Republican Rep. Seth Grove, House Bill 1189 would allow districts to use earned income tax, business privilege tax or a mercantile tax. They also could use a combination approach. All funds generated would need to be used to directly eliminate or reduce school district millage rates.
The bill limits the use of the business taxes to 50 percent of the total elimination tax revenue. And a school board that eliminates property tax millage rates would be prohibited from levying it in the future.
“House Bill 1189 provides a multitude of options for school districts to deal with their property taxes,” Grove said. “In areas where the local populace is demanding elimination, it eliminates. In areas where the local populace wants reductions, it reduces. In areas that want to be left alone, it allows them to keep the status quo.”
One of four property-tax bills on the table, it now moves to the Senate for consideration.