Office of Speaker Dennis M. O’Brien

Pennsylvania House of Representatives

139 Main Capitol Building, Harrisburg

FOR IMMEDIATE RELEASE                                          CONTACT:  Bill Patton

                                                                                                                       717-787-4610

O’Brien hails tax reduction in Philadelphia

PHILADELPHIA, April 15 – House Speaker Dennis O’Brien says the coming reduction in Philadelphia’s resident and non-resident wage tax is great news made possible by the money generated by slot machine gaming in Pennsylvania.

The state budget secretary today announced that the resident wage tax rate is projected to decrease from 4.169 percent to 3.93 percent in 2009 – a 5 percent overall reduction – while the non-resident wage tax rate is projected to decrease from 3.685 percent to 3.5 percent.

“Today’s announcement is great news for Philadelphians and it gives an important boost to the ongoing reduction of the wage tax here,” O’Brien said. “Our city will become more competitive as a result and hundreds of thousands of working people and retirees will keep more of their hard-earned money.”

O’Brien noted that today’s certification triggers additional relief for Philadelphia’s older residents under the state’s Property Tax/Rent Rebate Program. Senior households in the city with incomes under $30,000 will see higher rebates starting this year because of the money generated by gaming.

Rebates for older Philadelphians with modest incomes will rise by 50 percent, with the maximum rebate going up from $650 to $975. Rebate amounts will be automatically computed by the Department of Revenue and O’Brien encouraged people to file for the rebates by June 30.

“When I voted to legalize slots in Pennsylvania, it was with the foremost goal of tax relief. The new industry that developed is still young and growing pains are inevitable, as we’ve seen with regard to the two Philadelphia licenses.

“But this industry is going to provide a reliable source of tax relief for all Pennsylvanians from here on out, and when all the licensed facilities are up and running the tax relief generated will be even greater,” O’Brien said.

Thousands of slot machines are now operating at seven locations in the state, including Philadelphia Park in Bensalem. An additional seven facilities are scheduled to begin operation by 2010, increasing the revenue stream for future tax relief.

###