More than 200 people crammed into Bethlehem Township's meeting room Wednesday night for a town hall on property taxes hosted by state senators Lisa Boscola, D-Northampton, Mario Scavello, R-Monroe and Dave Argall, R-Schuylkill.

Each is a co-sponsor of the Property Tax Elimination Act, which was defeated in 2015 when Lt. Governor Mike Stack broke a 24-24 tie to send this reform measure to perdition.

Argall has resurrected the legislation and is conducting town halls statewide to whip up support.

"It's the number one issue I face," said Boscola.

"I can't get a flat tire fixed without someone bringing it up," added Argall.

Under his proposal, school property taxes can only continue to be levied to pay off existing debt. Once that happens, the school property tax is eliminated. For school districts that have no debt, there will be no property tax.

Schools would be funded through an increase in income and sales tax.

State income taxes will rise from 3.07 percent, where they have been since 2004, to 4.95 percent. Sales tax will rise from the current 6 percent, where it has been since 1968, to 7 percent.

The sales tax will also be expanded to include many items that are now exempt, from nonprescription drugs to clothing.

School districts will receive the same sum, dollar-for-dollar, they would have received in property taxes.

Every year, annual school funding will rise based on the percentage increase in the Pennsylvania Average Weekly Wage or the percentage increase in sales tax revenue, whichever is less.

Enough money?

In 2013, the state Independent Fiscal Office concluded that sales and income tax increases would "more than offset a reduction in property taxes."

School districts that would like to collect even more revenue will have to take their case to the voters and ask them to approve an increase in earned income tax, which would expire after four years.

Property taxes will still be collected for municipal and county governments.

Ron Boltz of the PA Coalition of Taxpayer Associations, said the current system is antiquated.

"We no longer earn our living from our homes as we once did," Boltz said.

He said school taxes have increased 146 percent between 1993 and 2013, while wages only grew 80 percent.

Jim Rodkey, who is with the Lebanon County Property Rights Committee, was also invited to speak.

"No tax should have the power to leave anybody homeless," he said. "If we can't do this without stealing people's homes from them, then we have a serious problem."

Most people in the sometimes raucous crowd were there to support the elimination of school property taxes.

Bob and Jan Kistler, both sporting property tax elimination T-shirts, made the trip from Palmerton.

Bob Kistler noted that Pennsylvania has the country's second highest number of people who are moving out of the state. The lead reason they give for leaving is high property taxes.

One member of the audience also complained about free school lunches for impoverished children. Boltz made clear, however, that he supports public schools.

"We are not trying to get out of funding our schools," he said. "We are just looking for a more fair way."

He said, under the current system, 10,000 homeowners are dispossessed at sheriff's sales every year because they are unable to pay their property taxes.

Linda Robertson, one of the few people who seemed to be concerned about an outright elimination of the property tax, noted that a regressive sales tax will be imposed on day care, nontuition college fees and even caskets.

"Who wants to pay a tax on caskets?" quipped Argall. "The good thing about that is you only do it once. Property taxes are over and over."

Funding disparities

Jeff Garis, representing the state Budget and Policy Center, pointed out that there are huge "educational disparities" throughout the state.

One school district might be able to spend $20,000 per student while others are unable to spend even half that amount. Property tax elimination just locks in that disparity, which will then continue.

Boltz said the funding formula can be adjusted to eliminate any disparity.

Salisbury Township's Elizabeth Lechner wanted to know why so many school administrators oppose this tax.

"They are afraid of change," answered Argall. This is a major, major change in the way we do business."