Property Tax Bite May Worsen

Here's one more after-shock from the stock market crash: A crisis in Pennsylvania's pension fund is likely to cause hefty property tax increases.

The Public School Employees' Retirement System took a big hit in the crash, its assets plunging 26 percent last year to $43.2 billion. School districts and the state have to make up a $15 billion liability so that retired teachers and other school employees will get their full pensions, as required by law.

Homeowners may wind up shouldering the burden. Property taxes vary district to district, but the average tax bill will jump at least $200 to $300 by 2013, said the Pennsylvania School Boards Association (PSBA).

Everyone dreads higher taxes, but for older people it is especially upsetting.

"When you are talking about the average senior who is on a fixed income and did not get a Social Security increase this year, how can they afford higher taxes and still be able to afford their homes?" said Ray Landis, AARP Pennsylvania advocacy manager. … Back to Article