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Know More - Act I

September 24, 2006

The issue: Act 1 mandates that Pennsylvania school districts appoint local tax study commissions to recommend how school boards should shift taxes away from property taxes, either by increasing the earned income tax paid by wage earners, or creating a broader personal income tax, which also taxes some investment income.

What's new: The local tax study commissions have begun holding meetings to examine each district's tax structure to determine how much property taxes should be reduced and local income taxes increased.

What's next: The commissions have until Dec. 13 to make their recommendations to their respective school boards, which can accept the plans or craft their own property tax relief proposals for voters to consider in the May 2007 primary.

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