ISSUES & ADVOCACY

Act 1 Resources


Act 1, passed by the PA General Assembly in July 2006, authorizes school districts to levy new earned income or personal income taxes. Act 1 requires school districts to adopt a preliminary budget and seek voter approval in a referendum to implement increases greater than the year's index or to levy new taxes for the following fiscal year. Districts may qualify for exceptions to this requirement.

Act 1 Questions and Answers: What you need to know about property taxes in your district
With the renewed focus on the property tax forced upon local school districts by the Corbett administration, PSEA prepared a question-and-answer guide as a primer on the property tax system in Pennsylvania and Act 1 of 2006, the law that regulates it.

Key Dates for 2015:

  • Jan. 29. The deadline for school districts to make the next fiscal year’s preliminary budget available for public inspection or adopt a resolution indicating they will not increase property taxes above the Act 1 index
  • Feb 18. Deadline for districts seeking tax increases above their indices or applying for exceptions to adopt 2013-14 preliminary budgets
  • Feb. 23. Deadline for districts to seek state Education Department approval for referendum exceptions permitted under state law (now limited to debt load, special education costs, and pension contributions)
  • March 20. Deadline for districts not seeking exceptions or seeking increases beyond exceptions to submit referendum question to their county Board of Elections for approval
  • March 30. Deadline to submit referendum question for those districts that were denied a referendum exception
  • May 19. Primary election
     

Acronynms:

PTRA - Property Tax Reduction Allocations
EIT - Earned Income Tax
PIT - Personal Income Tax

Act 1 Example: 
Find additional examples 

Act 1 Example 1

 

 

 

 



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