CHAMBERSBURG, Pa. - The Chambersburg School Board is scheduled to vote tonight on a property tax relief proposal that would provide a homestead exemption of $259 for most homeowners in its first year, although an increase in the earned income tax would result in many households paying more taxes.
The district's local tax study commission held a public hearing Tuesday night on its tax reform proposal which, if accepted by the board, will be placed on the May 15 primary ballot to be approved or rejected by district voters. If the referendum is approved, the new tax rate would go into effect July 1, 2007.
The proposal raises the earned income tax from .5 percent to 1.2 percent, the minimum increase allowed under the guidelines set by Act 1. In the second year, the homestead and farmstead exclusions, which property owners must apply for to receive, would go up to $367, according to figures provided by Public Financial Management Inc., the firm hired by the district to assist the tax study commission.