Board to put wage tax question on ballot

Voters can change school funding to reduce the property tax for homeowners.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- Wage-earners living in the city could see a shift in their taxes if voters agree to support a proposed increase in the earned income tax this May.
New Castle Area School Board has agreed to place a referendum question on the primary ballot, asking voters whether they want to increase the wage tax. If so, revenue generated with that increase would provide tax relief to residential property owners.
Essentially, property taxes would go down, but earned income wage taxes would go up.
"It really helps the senior citizens in our district," explained Joseph Ambrosini, school district business manager.
Suggested by panel
The move is being made at the recommendation of a local tax study commission created to study the matter. Placement of a referendum on the ballot is a requirement of Act 1, the property tax relief act, adopted by the state Legislature last year.
If the school board had rejected the commission's recommendation, the district would have had to come up with an alternative proposal to place on the primary ballot.
Act 1 allows school districts to reevaluate the taxes levied and consider shifting more of the funding for education to the earned income tax or personal income tax, to reduce the property tax for homeowners.
Statewide, each local school board was required to appoint a tax study commission made up of local residents to make a recommendation to the board whether the personal or earned income tax should be used to offset the property tax.
The referendum will allow voters final say over whether this tax shift should occur.