Don’t spend it all in one place…

Pennsylvania slots will bring a whopping $169.00 in school tax relief according to an article published in the Pittsburgh Post Gazette.

While the size of property tax reductions from slots revenue will vary among 500 Pennsylvania school districts, $169 is the average amount of relief statewide when school property tax bills go out in July, Michael Masch, state budget secretary, said yesterday. In Philadelphia, the slots money will go to lower the city’s 4 percent wage tax rather than property taxes.

Since the money will go directly to the school district, the taxpayer won’t exactly see the money. What they should see is a reduction in their school tax.

The State will be sending out notices to some taxpayers. Since many homeowners have mortgages, they won’t see a reduction in their tax escrow account until next year. Yeah, you heard me next year. That’s because banks and mortgage companies collect the taxes one year in advance. Homeowners that have their taxes escrowed will have to contact their lender to find out how much of a tax break they will receive.

The law slapped a 34 percent tax on the gross terminal revenue from the casinos, a levy that has generated $661 million in property tax relief for the fiscal year that begins July 1, Mr. Masch said.

Of that amount, $612 million will go for “general, broad-based property tax relief” for home and farm owners under age 65. The other $49 million will be used for property tax relief and rent rebates targeted just for senior citizens (age 65 and older) with incomes no more than $35,000, he said.

The amount available for seniors’ tax relief is actually $173 million, with the other money million coming from the state lottery fund, as in the past. Because of slots, the number of seniors getting tax relief will almost double, to 600,000, and the maximum tax relief will jump from $500 to $650.

You can read the article in its entirety here…

Looks like the slots won’t be putting tax dollars directly back into home owner’s pockets. If you are looking for a Government handout, you will have to wait for that “stimulus check” . With the cost of oil, that “stimulus check” might help a teeny bit with the upcoming Winter’s heating costs.