PROPERTY OWNERS Schools mail forms to tax-cut applicants

Participating districts must first raise the earned-income tax on residents.
SHARON, Pa. -- All 12 of Mercer County's public school districts are mailing state homestead/farmstead applications to property owners as the first step in complying with the Homeowners Property Tax Relief Act (Act 72) passed earlier this year.
None of the school boards has determined yet if it will participate in the program, but Act 72 requires that the homestead/farmstead applications be mailed out now.
Act 72 proposes to provide school property tax relief with gaming revenue expected to develop from the legalization of slot machines in Pennsylvania.
All 12 Mercer County school districts, as well as the Wilmington Area School District in Lawrence County, put out a joint news release Wednesday saying they will be mailing the application forms.
The release also cautions that potential property tax reductions are not automatic.
Receiving forms
The forms are going to owner-occupied residential property and agricultural property owners and must be returned to the Mercer County assessor's office (Lawrence County in the case of Wilmington Area) by March 1, 2005.
If they miss the deadline, they won't be eligible for tax reductions, should they become a reality.
Commercial and industrial property owners aren't eligible for tax reduction under Act 72.
School boards have until May 30, 2005, to decide if their districts will participate in the program.
Participation
If a board decides not to participate, its taxpayers won't see any property-tax reductions from gaming revenue.
If a board opts to participate, it must first raise the earned-income tax rate on its residents by at least 0.1 percent to provide additional revenue. The district would then be eligible for tax relief from gaming funds.
School districts will send out a reminder mailing by the end of the year to eligible property owners who fail to respond to the mailing going out now.
If gaming revenues develop, property owners could expect to see some reduction in their tax bills beginning with the 2006-07 school year.
Just how much is uncertain. There have been some estimates that it will be as little as $100 a year.
gwin@vindy.com