By Dawn Keller, Staff writer

dkeller@observer-reporter.com

The Pennsylvania Department of Education announced Thursday how much less property owners will pay in taxes in the coming fiscal year because of gaming revenues.

The amount varies by district, depending on how many homeowners and farm owners applied for the property tax reduction. Only those who live in their homes and on their farms can get the reduction.

The highest reduction in Washington County is in Washington School District, an estimated $406. The lowest amount is in Canon-McMillan, an estimated $99. In Greene County, the highest is in Central Greene, an estimated $362, and the lowest is in West Greene, $105.

The average Pennsylvanian will save about $190, Gov. Ed Rendell said in a news release.

"It is our belief that when all 14 venues are up and running, the average property tax relief for each homeowner will rise to $300, in addition to the $250 to $650 property tax rebate for seniors also made possible by gaming proceeds," he said in the release.

State law requires state revenues collected from gambling to be distributed annually to provide local tax relief. This year is the first time homeowners are seeing a property tax reduction because of that law.

School districts will receive the money and then reduce the amount taxpayers owe when tax notices go out in July, said Washington business manager Rick Mancini.

"They will not be getting a check," he said. "A check is not in the mail."

Instead, it means that they will pay less property taxes. In the city, it's almost a 50 percent reduction, and in East Washington, property taxes will be reduced by roughly 30 percent, he said.

Mancini said it will be good for Washington because 53 percent of the properties in the district are rental properties. Rental properties are not eligible for the reduction.

That means the tax reduction is higher for people who live in their own homes in Washington, he said.

"Because of the number of rental properties, property owners (who live in their own homes) are going to get a bigger break," Mancini said, adding that may mean more people will buy their own homes in the district.

The reduction may not be the same next year, depending on how much money is available through gaming revenue and how many people in each district apply for the relief, said Fort Cherry business manager Paul Sroka.

Debbie Bardella, director of tax revenue for Washington County, said applications were sent out to property owners for the past four years to determine whether they are eligible. She said owners will probably only have to apply once and new people can apply each year.

"We'll have to see how it goes," she said.

Though the districts are getting the money from the state, they must pass it all on to taxpayers, Sroka said.

"It's a straight wash for us," he said.

Sroka said he's glad to see the initiative finally bearing fruit. Districts have been wondering if the money would ever come through.

"It shows that the bureaucracy does work," he said.

View the tax reductions for each district at www.observer-reporter.com/OR/sourcedoc/.

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