A bipartisan effort to eliminate school property taxes in Pennsylvania has produced a new senate bill that could significantly alter public education funding.

Senate Bill 76, the Property Tax Independence Act, originally proposed in 2015, would call for an end to school property taxes.It would replace the funding source with an increased Personal Income Tax rate of 4.95 percent - currently at 3.07 percent - in addition to raising the sales and use tax to 7 percent.The tax would also be expanded, covering goods and services that currently have an exemption.Local Sens. David G. Argall, R-Schuylkill/Berks, John Yudichak, D-Luzerne/Carbon, Mario Scavello, R-Monroe/Northampton, and Lisa Boscola, D-Lehigh/Northampton, are standing up as sponsors and supporters of the bill, which has been referred to the Senate Finance Committee."While it will help all homeowners, the people that will be helped the most are seniors living on fixed incomes. They're most in danger of losing their homes due to rising school property taxes," Argall said.Argall's office said the initiative came from a collection of 20 lawmakers, and was drafted by more than 80 taxpayer groups from across the state."School property taxes are by far the fastest-rising tax in Pennsylvania and the largest concern from the residents we represent across the state," Argall's release said. "Efforts to reform the archaic tax in the past, while well-intentioned, have fallen short of the expectations of taxpayers. This plan is unlike any other piece of legislation as it was drafted by hardworking men and women across this state dedicated to the eradication of the 1834 model of funding our public schools. Clearly the time has come to eliminate school property taxes and in this age of partisanship, this is an issue that crosses party lines since it affects every property owner of this state."School agency waryWhile most homeowners would jump at the opportunity to eliminate school property taxes, groups like the Pennsylvania Association of School Business Officials are wary to back the effort."It creates some significant questions as to whether they can adequately fund the school districts," PASBO director of advocacy Hannah Barrick said. "The school property tax is stable. When you look at the Personal Income Tax and sales tax, it fluctuates significantly. Look at the recession - Personal Income Tax (revenue) went down, sales tax (revenue) went down."And due to the personal income tax and sales and service tax increases happening on a statewide level, a hefty sum of money would be coming from the capitol. This could prove problematic for school districts when it comes to everyday business."There would be a huge shift from local control to Harrisburg," Barrick said. "It takes the authority from school districts, boards, and administrations. Things as simple as starting a new program or hiring a new teacher will become difficult."Barrick said that PASBO is open to exploring other funding methods, but the best approach would be focusing upon individual communities as opposed to a blanket approach.Defeated last timeThe last time that the issue of school property tax elimination was addressed was in November of 2015, a 24-24 tie was broken when the Lieutenant Governor voted the measure down."In 2015, we came one vote short of passing it. We're trying again, beginning with a workshop at Pocono Mountain East high school on Thursday," Argall said.While the bipartisan group is open to working together and compromising on adjustments, Argall firmly believes that totally eradicating the tax is the only way to go."If you don't go for a complete elimination, no one will ever trust that the tax won't come back," he said.The problem with SB 76, however, lays in the fact that it actually allows for a grace period where taxpayers would still be responsible for school property taxes."It sounds fantastic, but the bill doesn't actually eliminate property taxes. It maintains them to pay off existing debt for five, 10, or 20 years. They're going to be doing that at the same time as the income tax and sales tax, so they're almost doubly taxed," Barrick said.Despite the increased public reaction to school property tax issues, including recent tax appeals that were eventually canceled in Jim Thorpe Area School District, Argall said that more education and negotiation is necessary before the bill can move forward."We're still a few votes short, but that's why we're convening these statewide workshops and public hearings, so we can get this to the governor's desk," Argall said.