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According to figures projected by the Pennsylvania
government, for the second year in a row, tax revenues from slot
machines reached a threshold for use for tax relief in Philadelphia.
The amount of tax relief this year will be similar to relief offered
last year, only a little bit less.
Act 1, passed in 2006, is the piece of legislature
that specifies how tax dollars from slot machines shall be divided up
into tax relief.
Suburbs surrounding Philadelphia will receive about
$139 million in tax relief this year. That is only about $169,000 less
than these areas received from slot machines last year. In Chester,
Montgomery, and Delaware counties, individual property owners will
receive between $73 and $641 in school tax reductions.
Wage tax reduction is the only tax relief that
Philadelphia will receive. Workers in the city, both residents and
suburban commuters, will receive roughly $86.3 million in wage tax
reductions. Last year the same workers received $86.5 million.
The tax relief from slot machine revenues is not
given directly to individuals or households in Pennsylvania. In the
city the money is used to lower the percentage of the wage tax. In the
surrounding suburbs it is used as a credit on tax bills.
However tax relief for the state overall has increased by about
$600,000 this year. Pennsylvania property owners that do not live in
Scranton or Philadelphia will be receiving about $528 million in tax
relief. The only reason that individual will be seeing less in tax
relief is because the tax dollars must be split up among more homeowners
than the year before.
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