Ballot Question for May 2007 Primary

Members of the North Hills School Board will follow the recommendation of its nine-member Tax Study Commission and ask voters whether they wish to shift some property taxes to an earned income tax.

As required by Act 1 of 2006, a referendum question will be on the May primary ballot asking voters if they would like to increase the earned income tax by 1 percent ~ to a total of 2 percent.  Currently, residents pay 0.5 percent to the district and 0.5 percent to Ross Township or West View Borough.  This increase in earned income tax would fund a Homestead real estate tax reduction of approximately $703.

The tax shift would affect residents differently depending on household income and whether a resident rents or owns a home.  Regardless of income level, all renters with earned income will pay more in taxes because they would not qualify for the $703 Homestead Exemption. Qualifying homeowners with an annual household income of less than $70,269 would pay less net tax.  Homeowners with an annual household income in excess of $70,269 will see an increase in their net tax.

The question on the May ballot will read:

“Do you favor the North Hills School District imposing an additional 1.0% earned income tax?  The revenue generated from the increased tax rate will be used to reduce school district taxes on qualified residential properties by an estimated $703.  The current school district earned income tax rate is .5%.”

If approved, this tax shift will be revenue neutral for the school district.  The increase in earned income tax revenue will be offset by a reduction in property taxes via the homestead exemption.