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“No tax should ever lead to our residents having to face homelessness,” Pennsylvania state Sen. Chris Gebhard told WFMZ. Now, a newly proposed constitutional amendment aims to eliminate the tax that many Keystone State homeowners say is pushing them to the brink: the school property tax.
Introduced by Gebhard and state Sen. Doug Mastriano, both Republicans, the measure would prohibit school districts from collecting property taxes starting on July 1, 2029. In their place, the state would be required to adopt a new funding model for public education.
It’s a bold proposal that could upend a crucial source of funding for public schools in the state, which currently ranks 19th in the nation for best pre-K-12 education, according to the U.S. News & World Report rankings.
But for many Pennsylvania homeowners—especially retirees, low-income families, and longtime residents on fixed budgets—property taxes have become one of the most burdensome and unpredictable housing costs. Proponents say the amendment offers long-overdue relief and a path to greater housing stability. Critics warn it could destabilize school funding and deepen inequalities between wealthier and under-resourced districts.
What the amendment would do
The new proposal from Gebhard and Mastriano wouldn’t eliminate property taxes entirely. Instead, it would ban Pennsylvania school districts from collecting property taxes beginning on July 1, 2029. Lawmakers would then be responsible for replacing this model with a new framework that could draw from state sales taxes, state income taxes, and local earned income and net profit taxes.
If passed in the House and Senate, the amendment would then head to the ballot, where it would need a simple majority of voters to approve it before becoming law.
Public K–12 schools rely heavily on property taxes. Nationally, they account for 80% of public education funding, according to the Lincoln Institute of Land Policy. They provide a stable and predictable revenue stream and offer communities a degree of local control over their schools, allowing residents to vote on funding increases or bond measures for building improvements.
Still, the system has long faced criticism.
Property wealth varies significantly from district to district, leading to wide disparities in per-student spending. How much a school taxes residents can also vary widely from county to county, exacerbating disparities in wealth inequality.
For example, in Philadelphia, where the median-priced home is $289,000, the current effective property tax rate is 1.3998%—with the city accounting for 0.6159%, and the school districts accounting for 0.7839%. Meanwhile, on the other side of the state in Ellwood City, where the median home is worth $150,000, the effective property tax rate is 3.8%, with schools accounting for nearly 2%, and the remaining revenue split between the city and fire district.
As efforts to eliminate or reduce property taxes gain traction in states such as Nebraska, North Dakota, and Texas, education advocates warn that replacing local taxes with state-controlled revenue could introduce new risks.
Without the cushion of local property tax revenue, school funding could become more volatile, particularly during economic downturns when sales and income tax collections decline. Critics also warn that removing the local funding link could erode community influence over public schools and complicate long-term investment in school facilities.
Why lawmakers are pushing for this
For Gebhard and Mastriano, eliminating school property taxes is about protecting homeowners from what they see as an unjust and unsustainable financial burden.
“It is outrageous and unacceptable that property taxes are causing Pennsylvanians to lose their homes,” Gebhard said in a statement announcing the amendment. “We must act now to end the suffering so many people are facing because their property tax bills keep going up.”
He framed the proposed constitutional amendment as a way to give voters—not politicians—the final say on how schools are funded.
“The people of Pennsylvania deserve to have a direct voice on this issue, which is why we introduced this bill as a constitutional amendment, putting the final decision on property tax elimination in the hands of the voters,” Gebhard said. “Homeownership is a long-term goal for countless Pennsylvanians who are striving to achieve the American Dream.”
Mastriano echoed that sentiment, casting the current system as fundamentally broken and morally wrong.
“It is ludicrous that Pennsylvanians are being forced to pay rent—disguised as property taxes—on land they own,” he said. “This must end. Now.”
Mastriano pointed to the difficult choices many seniors face.
“Each year, thousands of our seniors—men and women who worked their entire lives, paid off their homes, and played by the rules—are being thrown out of those very homes simply because they can’t keep up with an ever-growing tax bill,” he said. “This is not just a financial issue—it’s a moral crisis. When it comes down to a choice between paying for insulin or paying the government to stay in your own home, something in our system is broken.”
He added: “It’s time we stop punishing homeowners for owning a piece of the American dream. We will not rest until this burden is lifted and justice is restored for our retirees, our families and all those who simply want to live in peace in the homes they rightfully own.”
Voters could reshape the property tax system
At stake are billions of dollars in annual school funding and the financial stability of millions of Pennsylvania homeowners. School property taxes generate a massive share of local revenue: money that pays for teacher salaries, building maintenance, extracurricular programs, and more. Changing how that system works would affect every district in the state and could set a precedent for other states watching closely.
Before anything changes, however, the amendment must clear two consecutive sessions of the Pennsylvania Legislature. If it passes both times, the final decision would go to voters in a statewide ballot referendum.
Whether this proposal is a long-overdue fix or a fiscal gamble with unpredictable consequences might soon be up to the people of Pennsylvania.