Pa. renters have big stake in referendum

By Charlie Ban
VALLEY NEWS DISPATCH
Sunday, April 8, 2007

Passing on the chance to vote this spring may prove costly for renters.
The May 15 primary will include a referendum on a tax shift that would increase the wage tax or establish an income tax in order to provide property tax relief.

This relief, ranging from $82 to $677 depending on the school district, will apply only to homeowners. Since renters are not property owners, they will see their local income tax rise without the benefit of a corresponding tax break on property.

The referendums were approved by school boards after recommendations by local tax-study commissions. They either approve increasing the wage tax -- now 0.5 percent in all school districts -- or establish personal income taxes, which include earnings from such things as stocks, bonds, rental property income and other investments.

The deadline to register to vote is April 16. Any U.S. resident who has lived in a district for 30 days prior to the election and will be at least 18 on the day of the election is eligible to vote.

A study by the Pew Research Center found that 22 percent of Americans are not registered.

Nish Suvarnakar, field director for the Pittsburgh League of Young Voters, said the referendum is not the kind of issue that inspires voters.

"Largely, renters vote when it comes to the presidential level, when there are candidates they can relate to," he said. "Things they can't see, like a referendum, aren't going to bring them out to vote."

He said the timing of the referendum would affect turnout because there is no high-profile race to draw voters. This also makes voter education difficult.

"We can do everything we can to engage them, but off-cycle elections are a challenge," he said. "Getting people interested in a referendum isn't as sexy as getting them interested in who the next presidential nominee will be.

"When you put it into context, (this election) matters a lot more, though," Suvarnakar said. "Local elections have a more immediate effect as to how you will live your life."

Greg Primm, president of the Apollo-Ridge School Board, said a high number of low-income residents and retirees in his district would benefit from the 0.8-percentage-point increase in the wage tax his district is proposing.

"I do think the referendum passing would be good for our area," he said. "I say this knowing it will cost me more."

Allegheny Valley School Board President Scott Redman said the proposal was awkward for his district.

"We kept no secret we weren't happy with the limitations the referendum placed on us," he said. "We figured that there was no possible change allowed by the state that would benefit most of our residents. If it's going to harm 80 percent of our taxpayers, it's a bad idea."

The board approved a referendum that would tax investments as well as income.

"By voting no, you vote to keep the system we have," he said. "I would have preferred it to be more straightforward, though."

Primm stressed the need for voters to become aware of the impact of the referendum's approval.

"It's hard for some people to want to pay a few hundred dollars more, knowing it will go elsewhere," he said. "Voters need to make sure they read the question carefully."

Charlie Ban can be reached at cban@tribweb.com or 724-226-4702.