SUNBURY — “It’s a short term fix to a long term problem” – that is how State Representative Fred Keller (R-85th, Kreamer) describes a proposed property tax shift. Keller says he does not agree with Republican legislation that will be voted on next week in the state house.
“The concern I have is the bill that we’re looking at shifts from one tax to another,” Keller said. “It is not an elimination of a tax, it’s a shift away from property tax to a sales tax and a personal income tax increase. When you look at what happens it sounds like a good idea, but it’s a short term fix to a long term problem.”
Keller says he knows people are currently concerned about the affordability of property taxes, but this plan is not the answer. “The problem is, initially you would see reduction in your property tax – and I know we all experienced a little bit of that with the slot machine money. But then over time the very reality of it is, you would eventually see your property taxes increase again, therefore creating a similar situation to what we have now, in the next 5 to 7 years after any bill like this would be passed,” Keller said.
Keller said the net effect for Valley property owners would be an overall tax increase — plus in future years, school taxes can go up again to the existing levels. (Codi Jade)