Lebanon County Tax Fairness Calculator
 

 
Estimated 2005 Property Tax Savings1
CCAP Tax Fairness Proposal as Contained in HB 1248
 
 
Current Tax Revenues
The county's current real property revenues are: $12,985,448  
The county's current revenue from all other local taxes
(including personal property, per capita or occupation assessment)2: 		$0  
The county’s current total tax revenue: $12,985,448  
 
The Sales Tax Option
If the county chooses the sales tax option allowing for a 1% county sales tax,
the sales tax would generate3: 		$7,203,000  
Which would yield a property tax reduction of at least4: 55.47%  
 
The Personal Income Tax Option
If the county chooses the personal income tax option allowing for a 0.5% county personal income tax, the personal income tax would generate: $11,651,000  
Which would yield a property tax reduction of at least4: 89.72%  
 
The Earned Income Tax Option
If the county chooses the earned income tax option allowing for a 0.5% earned income tax, the earned income tax would generate: $11,293,000  
Which would yield a property tax reduction of at least4: 86.97%  
 
1) Estimates of county revenues are projections based on tax year 2002 data. Sales tax revenue, personal income tax revenue, and earned income tax revenue are based on 2005 Department of Revenue Estimates. Details of the proposal can be viewed at: Tax Fairness Proposal and legislation based on the proposal is at HB 1248. The 1% county sales tax would be assessed on the same basis as the current 6% state sales tax.
2) Currently all counties are permitted to levy a personal property tax. Counties of the 4th through 8th classes are also permitted to levy a per capita or occupational assessment tax. Under the proposal these “nuisance” taxes would be prohibited.
3) The tax fairness proposal provides for sharing the revenue generated from a 1% increase in the sales tax with the municipalities and school districts in the county. The amount shown is the county’s net share.
4) This calculation is based upon an across the board property tax reduction after first using a portion of the revenue to make a dollar for dollar replacement of the repealed nuisance taxes. The proposal also gives each county the option to grant the property tax reduction through a homestead exclusion, which would provide even greater property tax reductions for owner occupied residential property with a correspondingly lower reduction for commercial and industrial property.

 

 
The County Commissioners Association of Pennsylvania
17 North Front Street, Harrisburg, PA 17101-1624
Phone: 717-232-7554 Fax: 717-232-2162
Web Maintenance: Rita Reynolds