The state Senate Finance Committee plans a hearing Wednesday on a proposal to replace school property taxes with higher sales and personal income levies. A vote could follow the hearing. Should the vote favor the bill, it would then go to the full Senate for consideration, and if successful there, on to the state House.

Senate Bill 76 could become law as early as next year.The bill, introduced by state Sen. David G. Argall, would eliminate school property taxes by raising the state sales tax to 7 percent, up from 6 percent; and the state personal income tax to 4.34 percent, up from 3.07 percent. the sales tax would also be levied on a greater array of items, except for basic foods under the Women, Infants and Children nutritional assistance program."As Senate Bill 76 continues to gain momentum in the Senate, it is imperative that we continue to work out any potential road blocks before the bill comes up for vote and that is the purpose of this amendment. Legislation to eliminate property taxes has been circulated in the Capitol for many years but we have never been closer to making it a reality for Pennsylvania property owners than we are with the proposal outlined in Senate Bill 76," said co-sponsor John Yudichak, D-Carbon/Luzerne.Efforts to reach Argall for comment were unsuccessful early Tuesday.The bill, which has been in the Senate Finance Committee since March 2013, promises to keep school funding from the state on an even keel next year (the soonest the bill could be adopted), and provide for annual cost-of-living increases after that.It now has 26 co-sponsors, including local lawmakers Lisa Boscola, D-Lehigh/Northampton, and Patrick M. Browne, R-Lehigh.The number of supporters in the 50-seat Senate tips the balance in favor of the bill.The bill is supported by real estate and taxpayer groups, but opposed by the Pennsylvania Chamber of Business and Industry, which says it would unfairly burden small-business owners who lease space.Other proposals are also being considered.They include HB1189, which would allow each school district to decide how to raise revenue, whether by replacing property tax wholly or partially with higher earned income, or on business taxes.House Bill 125 would give local taxing bodies the authority to exempt all homesteads from property taxes. House Bill 1677 would amend the state constitution eliminating homestead exclusion limits of half of the median taxable value of a homestead property. House Bill 1685 would allow school districts to increase the earned income tax rate to provide homestead exclusions instead of through voter referendums.School districts now get gambling revenue to offset homestead exclusions.