The property tax relief plan approved by the House this week includes a personal income tax hike and adds 18 categories of goods and services not previously taxed to the sales tax, including management, consulting and public relations services.

The plan was offered as an amendment by Rep. Scavello (R-Monroe) to Senate Bill 854 (Armstrong-R-Lancaster).

The bill would increase the state income tax by .22 percent and, together with the additional sales tax revenue and revenue from slots, would result in an up to 50 percent decrease in local school property taxes for some residential property owners, according to the plan’s proponents.

The Senate passed a different plan that does not expand the sales tax in Senate Bill 30 last week, so the issue will not be resolved until the General Assembly returns to session in January.

12/23/2005