Think your school taxes were high this year? Start saving for 2012-13.H/T Pittsburgh Tribune-Review
That's when Pennsylvania property owners will pay a lot more money to cover the generous pension bump state lawmakers awarded themselves, school employees and state workers in 2001.
The tax hikes will cost the average property owner $558.00.
Jay Himes of the Pennsylvania Association of School Business Officials has tried to estimate the effect on particular school districts:
"I was in the Erie area the other day, and one school district there calculated they would have to raise taxes 14 mills on top of their 48-mill taxes to cover it. That's a 25 percent property tax hike just to cover retirement costs. I don't think the property owners will stand for it. Something absolutely has to happen," Himes said.
Read the Tribune-Review article for the history of the pension increase.
Needless to say, as these tax hikes approach, property prices in Pennsylvania will face downward pressure.