Act 1, Taxpayer Relief Act Information

Act 1, Pennsylvania's Tax Payer Relief Act Information

Act 1 Timeline through May 2007:

On May 15, 2007, T/E voters rejected the Act 1 Personal Income Tax through a majority "no" vote on the tax shift question on the primary election ballot.
In June 2006, the House approved Special Session HB 39, a tax relief conference report that distributes gambling proceeds for homeowner property tax relief, offers additional tax relief to qualified senior citizens, provides an optional shift of local taxes from property taxes to earned or personal income taxes, and imposes referendum on school district budgets that increase above an established index.
In September 2006, the T/E School Board appointed a citizen's Tax Study Commission to make the required recommendation on the type of income tax and the tax rate that will be included in the mandatory referendum question on the May 2007 ballot. The question will allow voters to approve or deny a shift from property tax to income tax.
On November 16, 2006 the T/E School Board held a required public hearing to obtain public input on Act 1.
On December 4, 2006, after months of study and public meetings, the Tax Study Commission recommended that voters in the T/E School District vote "no" to any change in the current property tax structure.
As required by Act 1, the Tax Study Commission recommended that the mandatory referendum question ask voters if they would like to adopt a .6% personal income tax in order to reduce property tax.
Homeowners who have not already done so will need to file a homestead/farmstead exclusion application with the county to be eligible for possible property tax relief. Letters and applications were mailed in December 2006 to homeowners who had not already submitted a homestead/farmstead exclusion application previously under Act 72. Please contact the Chester County Assessment-Homestead Office at (610) 344-4570 for additional information.
On February 27, 2007, the School Board held a public hearing on the local income tax ballot question at Valley Forge Middle School.
On March 12, 2007, the School Board determined the wording of the mandatory tax shift question for the May 2007 primary election ballot. The question will ask voters to accept or reject a .6% personal income tax in order to reduce property taxes.
On May 15, 2007 voters will approve or deny the local income tax through the ballot question during primary election process. Note: adult residents should ensure that they are registered to vote on the ballot question. Voters do not have to be part of a major party, or even any political party, to participate in a ballot referendum.

Act 1 of 2006 allows communities to make certain decisions about local tax structure. Specifically, it requires that a referendum question be placed on the May 2007 primary ballot that, with voter approval, would shift the funding for our local schools from a property tax to an income tax. T/E School District does not currently impose an income tax. Because the shifting of this tax would affect demographic groups differently, the Act requires that the School Board receive a recommendation from a citizen's Tax Study Commission comprised of representative members of the community. The purpose of the Commission is to make a recommendation to the School Board on the type of income tax and the tax rate that will be included in the mandatory referendum question. Under Act 1, the Commission’s options are limited to recommending an Earned Income Tax (EIT) or a Personal Income Tax (PIT). The law also prohibits alternate referendum questions concerning an EIT or PIT. The law requires that only one referendum question be submitted to local voters.

On Monday, September 11, 2006, the Board of School Directors held a special public meeting to appoint the members of the District's Tax Study Commission. The members of the Commission are Deborah Bookstaber, Armando L. Chardiet, Rachel Gibbs, Bryan Hampel, John G. Kershaw, Christopher A. Lewis, Debra L. Vermeire, Frank R. Yanni and Mark Zhen. On November 16, 2006, the School Board held a public hearing to obtain input from community members on Act 1 and the possibility of an income tax. This meeting was televised on local access cable Channel 14 and is available for circulation at the Easttown, Paoli and Tredyffrin public libraries.

On December 4, 2006, after months of study and public meetings, the Commission recommended that voters in the T/E School District vote "no" to any change in the current property-tax structure. As required by Act 1, the Commission also made a nonbinding recommendation to the School Board for a proposed referendum question. The referendum question must provide voters the option of property tax relief by replacing a portion of property tax with an earned income tax or personal income tax. The Commission recommended that the ballot question ask if voters would like to adopt a .6% personal income tax in order to reduce property tax. The School Board will consider this recommendation when preparing a referendum question to submit to voters in May 2007.

A public hearing on the local income tax ballot question was held on February 27, 2007 at 7:30 P.M. at Valley Forge Middle School to obtain public input.

In addition to the mandatory referendum question on the May 2007 ballot, Act 1 contains provisions for the expansion of the senior citizen tax rebate program, tax relief for all homeowners through gaming revenue, a mandatory referendum to raise property taxes above the annual inflationary percentage and the option of paying taxes in installments. For additional information on Act 1, please see the links on the right side of this page.

Additional Information

Senior Citizen Property Tax/Rent Rebate Form

Senior Citizen Property Tax/Rent Rebate Instruction Booklet

Act 1 Timeline Through May, 2007

Frequently Asked Questions on the Tax Study Commission and Act 1

School Board Resolution Opposing Local Income Tax - Adopted 3/12/07

Tax Shift Question for May 15 Primary Election Ballot- Approved 3/12/07

Pennsylvania Property Tax Relief/Rent Rebate Informaton for Seniors

January 2007 Act 1 Update Flyer

Tax Study Commission Chair's Presentation at 12/4/06 School Board Meeting

Homestead Exclusion Letter and Application

Tax Study Commission's Report - December 4, 2006