Rendell Proposes New Taxes
While there are no broad-based tax increases in this budgetproposal, the plan does call for more than $1 Billion in taxincreases.Pennsylvania remains the only state in the nation that doesnot tax smokeless tobacco and is one of only two states thatdoes not tax cigars. The governor’s plan includes a tax on bothsmokeless tobacco and cigars at 30 percent of their wholesalevalue.You may have heard of the Marcellus shale natural gasreserve, the geologic formation believed to contain as much as500 trillion cubic feet of natural gas. In a recent Marcellus shaleland lease sale, the Commonwealth received more than twicethe revenue it expected. The governor feels the industry canbear a modest tax — 5 percent of value, plus 4.7 cents per 1,000cubic feet of gas produced — without hurting industry growth.Pennsylvania is one of six states that does not tax naturalgas, and should remain that way. Natural gas is a burgeoningindustry in Pennsylvania and we should not be putting uproadblocks that may be a deterrent to what could be a solution toour addiction to foreign oil.
What Property TaxRelief?
The overwhelming topic brought up bythe people I meet continues to be propertytax relief. The governor addressed this inhis budget proposal by saying Pennsylvaniahomeowners, on average, will continue toreceive nearly $200 in state-funded propertytax relief – with even more savings for older adults who have the most urgent need.When gambling was legalized in 2004,significant property tax relief was promised.The current budget proposal does nothing tokeep that promise. During the debate aboutexpanded gaming last year, House Republi-cans attempted to have table games reve-nue diverted to the Property Tax Relief Fund.The legislation was defeated on a party linevote.My hope is that the proposed increasein basic education funding will not only leadto Lebanon County schools being sufficientlyfunded, but also will result in the lack of necessity for an increase in local propertytaxes.
Applications Now Available for Property Tax/Rent Rebate Program
Applications for the state’s Property/Tax Rent Rebate program for tax year 2009 are now available. Eligible par-ticipants can receive a rebate of up to $650 based on their rent or property taxes paid in 2009. The program benefitseligible Pennsylvanians who are 65 years or older, widows and widowers 50 years or older, and those 18 years or older with disabilities.Eligibility income limits for homeowners are set at the following levels, excluding 50 percent of Social Security,Supplemental Security Income, and Railroad Retirement Tier 1 benefits:• $0 to $8,000, maximum $650 rebate (Homeowners and renters)• $8,001 to $15,000, maximum $500 rebate (Homeowners and renters)• $15,001 to $18,000, maximum $300 rebate (Homeowners only)• $18,001 to $35,000, maximum $250 rebate (Homeowners only)Six weeks after a resident submits an application, he or she may visit the site to check the status of the rebate byentering the following information:• Social Security number • Date of birth• Anticipated rebate amountThe service will allow applicants to confirm the status, re-bate amount and the date a rebate is expected to be mailed or direct depositedThe Property Tax/Rent Rebate program is one of many ini-tiatives supported by the Pennsylvania Lottery, which dedicatesits proceeds to support programs for older Pennsylvanians.Since the program began in 1971, more than $4 billion hasbeen paid to qualified applicants.Residents are reminded to provide all the necessaryincome, property tax or rental information required to processclaims quickly and accurately. Applications are due by June30.Property Tax/Rent Rebate claim forms are available bycontacting my office at (717) 277-2101 or by visiting my Website at
RepSwanger.com.
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