Lower Moreland Township
School District
Understanding Act 1 – Property
Tax Relief Act
IMPORTANT NOTE!!!!!!!!!!!!
• On December 18, 2006, a mailing went out from
the County Assessment office to let people know
if their homestead has already been approved or
a new application was mailed if one was not on
file.
• If anyone has not received either document
please contact the County Assessment office at
(610) 278-3761 or go to www.lmtsd.org and
download the forms and send in.
• Deadline for filing is 3/1/07!!!!!!!!!!!!!!!!!!!!!!!!!
Act 1 – Major Provisions
•
•
•
•
•
•
Signed into law on June 27, 2006.
Mandated the provisions of Act 72 (with a few adjustments) that over 4/5 of
the school districts in Pennsylvania voted against.
Will provide an allocation of gaming receipts (slot machines) when they
become available – exact timing and amounts are uncertain at this time (no
allocation for the 2007/08 school year).
Allows for a voter referendum to determine whether there should be a tax
shift from property taxes to an additional earned income or personal
income tax.
Put limits on school district budgets; any tax increases must be within a predetermined index for property tax increases. Note: there are ten (10)
exceptions per the law that a District can apply for that would increase the
rate over the index.
The District had to create a Tax Study Commission to study existing taxes
and make a non binding Earned Income Tax (EIT) or Personal Income Tax
(PIT) recommendation for the purpose of reducing property taxes.
Tax Study Commission
• Met several times during the months of
September, October, November and
December.
• Based on historical information, as well as
on an analysis by Public Financial
Management (PFM), the Tax Study
Commission recommended an additional
1% EIT.
Lower Moreland Township Board
of School Directors Preliminary
Ballot Question Language
• Adopted preliminary language at 1/16/07
meeting. The language coincided with the
Tax Study Commission’s recommendation.
• Final vote on language will be at a Special
Board meeting on 3/6/07.
Language to Appear on Ballot
Question at 5/15/07 Primary
Election
• “Do you favor imposing an additional 1.0% earned
income tax? The revenue generated from the increased
tax rate will be used to reduce taxes on qualified owneroccupied residential properties approximately up to $360
in the first year, potentially rising up to $601 in
subsequent years. The current school district earned
income tax rate is 0.5% and the current combined
municipal/school district rate is 1.0%.”
What does this mean for me??
•
2nd Year Collections @ 1.00% EIT
• 1st Year Collections @ 1.00% EIT
Homestead Exclusion Value = $360
Total Inc.
1% EIT
Homestead
$300,000
$3,000
(360)
$270,000
$2,700
(360)
$255,000
$2,550
(360)
$225,000
$2,250
(360)
$210,000
$2,100
(360)
$180,000
$1,800
(360)
$150,000
$1,500
(360)
$135,000
$1,350
(360)
$105,000
$1,050
(360)
$ 90,000
$ 900
(360)
$ 75,000
$ 750
(360)
$ 45,000
$ 450
(360)
$ 30,000
$ 300
(360)
$ 15,000
$ 150
(360)
$
0
$
0
(360)
Variance
$2,640
$2,340
$2,190
$1,890
$1,740
$1,440
$1,140
$ 990
$ 690
$ 540
$ 390
$ 90
($ 60)
($ 210)
($ 360)
What does this mean for me?
2nd Year Collections at 1% EIT
Homestead Exclusion Value = $601
Total Inc.
1% EIT
Homestead
$300,000
$270,000
$255,000
$225,000
$210,000
$180,000
$150,000
$135,000
$105,000
$ 90,000
$ 75,000
$ 45,000
$ 30,000
$ 15,000
$
0
$3,000
$2,700
$2,550
$2,250
$2,100
$1,800
$1,500
$1,350
$1,050
$ 900
$ 750
$ 450
$ 300
$ 150
0
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
(601)
Variance
$2,399
$2,099
$1,949
$1,649
$1,499
$1,199
$ 899
$ 749
$ 449
$ 299
$ 149
($ 151)
($ 301)
($ 451)
($ 601)
Show Me the Money????
(Tax Bill Example)
•
Lower Moreland Township School District – 2007 Real Estate Tax Notice
(EXAMPLE ONLY!!!!!!)
Date: 7/1/07
Parcel Number:
123467890
Property Location:
555 Red Lion Road
Millage/Tax Rate:
22.2014 mills
Assessment:
Original Assessment
$210,000
Homestead Exclusion
$ 27,070
Net Assessment
$182,930
Millage rate times net assessment will be new total and will reflect
projected homestead exclusion dollar amount or property tax savings.
Example:
$210,000 * .0222014 mills = $4,662.30 (original assessment)
$182,930 * .0222014 mills = $4,061.30 (net assessment)
601.00 (homestead savings)
Assumptions: Assumes 1% earned income tax, 2nd year (full year) collections and
100% homestead participation.
Act 1 Winners &
Losers
• Winners may include:
• Those individuals who do not have “earned income” (retirees).
• Individuals who live in Lower Moreland but work in Philadelphia.
• Losers may include:
• Individuals whose earned income is above the break-even point.
• Renters.
• Those individuals who may own more than one home.
Act 1 – What is next??
•
•
•
•
•
•
•
Continue working on the school district preliminary budget.
Feb 19 – School District deadline to submit preliminary budget with
proposed tax rate increases to Department of Education.
Feb 22 – School District deadline to publish notice in newspaper of intent to
file petition with Court of Common Pleas in the judicial district in which the
administrative office of the school district is located or request approval from
the Department of Education for a referendum exception.
March 1 – Department of Education deadline to notify school districts that
submitted preliminary budget whether the 2007-08 proposed tax rates are
equal to or less than their Index.
March 1 – Deadline for homeowners to file a Homestead Application.
March 13 – School District deadline to hold public hearing on resolution
authorizing referendum question for the May 2007 primary.
March 13 – School District deadline to adopt resolution authorizing
referendum question for the May 2007 primary.
Act 1 – What is next??
(continued)
•
•
•
•
March 21 – Deadline for Court of Common Pleas or Department of
Education to issue ruling on school district’s petition for referendum
exceptions.
March 26 – School District deadline if the Court of Common Pleas or the
Department of Education deny the request for referendum exception(s) to
submit to county board of elections a referendum question seeking voter
approval of tax rate in excess of index.
May 1 – Assessor provides each school district with a certified report with
information on homestead properties.
May 15 – Primary Election
Questions??????
• Contact Information:
Nine Elected School Board Members:
Dr. Murray Cohen, Board President
Mr. Steve Lux, Vice President
Dr. Barbara Breitman, Board Secretary
Mr. Alan Steinberg, Board Treasurer
Mrs. Dorothy Kueny, Member
Mr. Michael Mueller, Member
Mr. Cedric McKeever, Member
Dr. Mark Elfont, Member
Mr. David Deibert, Member
Dr. MaryKay Feeley, Superintendent
Dr. Marilyn Lake-DellAngelo, Assistant Superintendent
Mark McGuinn, Business Manager
• Phone: (215) 938-0270
• Website: www.lmtsd.org