Many taxpayers were under the impression that state funding would offset school property taxes. It seems we've all been hoodwinked. We send our legislators to Harrisburg to work on our behalf, and now we're told that we're being misled. State funding MUST be linked to reducing school property taxes, or we should be allowed to stop paying school property taxes until it happens.
OPEN LETTER TO PA SENATOR ROSEMARY BROWN (R-40):
Pennsylvania State Senator Rosemary Brown (R-40) just sent out her Friday, February 28, 2025, late afternoon newsletter about education taxes not being reduced in accordance with federal, state, and local education tax funding being sent out to the schools and school boards. Senator Brown says we all should attend school board meetings to make sure that the funding offsets the school taxes. That's great in theory!
Well Senator, it appears many of us are too busy working to pay the excessive school and property taxes to get to Board meetings after being too tired from a day's work, or getting home late from work. And what about the Monroe County Commissioners holding their twice-monthly hearings at 10:00 in the mornings on weekdays, when nobody can attend due to a thing called "WORK"!?!?!?!? That's why we voted you into office (hired you) to represent us against the usurpations and deprivations of the local and county governments, as well as against the state government usurping our rights.
Further, education taxes for East Stroudsburg and Stroudsburg are the highest in the Commonwealth, while the median household income is around $60,000 in the two boroughs, compared to the Commonwealth average of $73,000. Approximately 65% of all properties in East Stroudsburg and Stroudsburg are RENTAL PROPERTIES, leaving homeowners with a larger stake of the burden. Even high-end income suburbs around Philadelphia pay less in property taxes than East Stroudsburg and Stroudsburg.
Isn't that interesting? While we fight the Boroughs and Townships to reduce property taxes after a 50% increase over two years, and now face ever-increasing school taxes that need to be controlled by We the People, the Legislature—voted in by We the People—sits there and twiddles their thumbs about using (and/or not moving) House Bill HB451 to use the 18% liquor tax to reduce property taxes. HB451 has languished in the committee process since May of 2023.
Also, where's the clamor by the legislators to go after the "non-taxable" "exempt" properties like hospitals, medical facilities, East Stroudsburg University and other colleges, government buildings, etc., that are sitting on $3-$4 BILLION DOLLARS in value but pay ABSOLUTELY NO PROPERTY TAXES to East Stroudsburg, Stroudsburg, and Monroe County in general? Why isn't the Legislature looking at the Court decisions compelling several hospitals in several counties to pay their "FAIR SHARE" of property taxes because it was litigated that hospitals and medical facilities are, in fact, "for-profit entities" and, therefore, taxable? It's called the "HUP test" after the state Supreme Court ruling in 1985, which outlined the requirements of a purely public charity.
The Supreme Court in Hospital Utilization Project v. Commonwealth, 487 A.2d 1306 (Pa. 1985) (commonly known as “HUP”) ruled that a purely public charity must meet a five-prong test:
To be considered a “purely public charity,” nonprofits must:
(1) advance a charitable purpose;
(2) donate or render gratuitously a substantial portion of its services;
(3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity;
(4) relieve the government of some burden; and
(5) operate entirely free from private profit motive.
Since the ruling involves the conjunctive word "and," it means all five (5) requirements must be met in total. If one or more requirements are not met, then the test fails. About four (4) of the five requirements fail the test:
(1) Allegedly non-profit hospitals are NOT advancing a charitable purpose;
(2) They do not render gratuitously a substantial portion of their services since they collect insurance, Medicare, Medicaid, and bill patients on top of that;
(3) They do not relieve the local governments (e.g., East Stroudsburg, Stroudsburg, Monroe County, other boroughs, towns, and counties) of some of the burden as property taxes skyrocket;
(4) They do not operate "entirely" free from private profit motive, as the state Supreme Court found out.
Additionally, what about directing some of the for-profit tourism money from the resorts in the Poconos toward East Stroudsburg, Stroudsburg, and Monroe County? These businesses are NOT taxed either, yet millions of tourists beat up our roads, abuse our services, and take over the area during summer and for winter skiing/sports.
Where's the effort in the Legislature to correct this imbalance? Where is the Legislature putting their feet on the necks of the local school boards that are abusing the taxpayers by essentially stealing federal, state, and local funding that are supposed to offset school taxes? We're not seeing it.