There's nothing like paying less in taxes.
Every Lancaster County school district raised property taxes this year. The county median hike came to 4.65 percent, nearly half a percentage point above the national rate of inflation.
But for median qualified property owners across the county, the savings have been significant. Their bills have dropped 1.28 percent from the 2007-08 school year.
It's all thanks to $17 million in state slot-machine profits intended to cut property taxes for those who qualify for homestead or farmstead exemption, meaning they live on the property they own.
"We only expect that these rebates will get larger," said Leah Harris, spokeswoman for the state Department of Education.
In all, 110,199 residents in the 16 public school districts qualified, but only 103,977 saw lower tax bills.
Eastern Lancaster County's school board voted down accepting gaming revenue — the only district in the state to do so. So its 6,222 qualified residents faced the district's full 4.27 percent tax hike.
By now, you've received your tax bill and might have even paid it.
This New Era review examines how state slots money affected property-tax increases on qualified median-assessed properties.
In dollars, the median countywide decrease comes to about $25 in savings.
Breaking it down, qualified property owners in 11 districts are paying less this year than they did last year.
Tax decreases in those 11 districts range from Lancaster, 13.12 percent, to Lampeter-Strasburg at 0.11 percent.
In dollars, the homestead savings ranged from $458 per qualified median assessed home in Lancaster to $79 in Solanco.
Lancaster School District's slice of the gaming money amounted to nearly $5 million for its 10,527 citizens who qualified.
Those citizens are grateful, school board President Patrick Snyder said.
"I think a couple of people I spoke to were surprised by the amount of relief," Snyder said. "I don't think all of them quite believed (slot money would cut their taxes) until they received their tax bills."
The median decrease in taxes for qualified residents in Manheim Central came to $95. The district also had one of the lowest tax increases at just under 2 percent.
One Manheim resident, Ken Kowalski, said he appreciated the break (His was around the $95.).
"Anytime you can pay less taxes it's a good thing," he said.
But in five school districts, residents are still paying more than they did in 2007.
Eastern Lancaster County is one.
The school board has come under fire for turning down the slots revenue. It's also received praise from those who oppose using gambling money.
Board President Loren Martin said his No. 1 reason for voting down the money was based on the feelings of the majority of residents who attended past meetings on the state taxpayer relief law.
The overwhelming majority said, "We don't want anything to do with gambling money to fund education," Martin said.
His personal moral beliefs did contribute to his decision, he said.
Also, the 2006 taxpayer relief law, Act 1, which drives the plan to relieve property taxes with gaming money, is complicated.
He believes it's best left to voters.
In November, Eastern Lancaster County residents in his district will decide if they want to participate or not when they go to the polls.
As for the other four districts — Solanco, Hempfield, Pequea Valley and Elizabethtown — with the slots money, qualified residents at the median are paying more than they did last year, but not by much.
The final tax increases in those four districts come to 0.27 percent, 0.29 percent, 0.52 percent and 1.16 percent, respectively.
To qualify for property-tax relief, a resident had to apply and receive approval for a homestead or farmstead exemption with the Lancaster County Property Assessment office. The deadline for applying was March 1.
Property owners can only get credit for one home or farm that is their primary residence.
Landlords and renters do not qualify.
Any approved applications at this point, up until March 1, 2009, qualify for tax relief in the 2009-10 school year.
In the meantime, Snyder said he believes the state needs to eliminate property taxes as a means for funding public education.
"It's a nice Band-Aid, but it's not an answer to the problem..." he said.
Staff writer Robyn Meadows can be reached at rmeadows@LNPnews.com or 481-6025.
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