The Pottstown School Board recently voted 5-4 to adopt a $79.9 million budget that does not raise taxes for the fourth straight year and includes a plan to return $740,000 of the surplus fund balance to taxpayers. The question on the mind of the board members who voted no is — which taxpayers? Initially, the board had intended to put that money into the existing Pennsylvania Homestead Exemption program, which uses gambling revenues to lower taxes for homeowners. Adding $740,000 to that account would have increased the tax relief those homeowners will already enjoy by an additional $203. Board Member Deborah Spence pointed out that option leaves more than half the town without any tax relief at all. Lowering the millage rate for all property owners could be an option, but that method gives tax breaks to people who own property in the borough, including those like landlords and commercial property owners who don’t live in the borough, and creates an automatic deficit for the next budget year. Neither option provides any benefit for renters. Another option for tax relief is to lower or remove the earned income tax (EIT) — such a cut would help property owners and renters but provide no relief to senior citizens whose retirement income isn't subject to the EIT. Much discussion ensued, with the board deciding to choose a tax relief option at the June 15 meeting.
Source: Pottstown Mercury; 5/19/2023