Home Rule in Lancaster City, what is it?

The upcoming Home Rule vote on November 5th could have significant implications for the local housing market. Uncertain about the potential impact on property taxes and affordability? Unsure of what Home Rule even means?  You are not alone. 

  What is Home Rule and why is it important that you know more about it? I am no expert on it, however, since Lancaster City residents are voting on in less than two weeks, I felt it was important to provide some basics. 

  Did you know, it's almost like creating a new government, in fact, it's called a new constitution for Lancaster City. Don't worry about the terminology, the City will still be bound by the US and PA constitutions.

  Home Rule is being proposed and voted on, to give more power to the City to to utilize 4 different taxes (not new taxes) to help the City avoid running a deficit budget. The thought process is a one-size fits all, as passed in Harrisburg, may not be best for Lancaster City. 

  Lancaster City only collects 4 taxes, the Property Tax, Earned Income Tax (EIT), Local Services Tax and the Real Estate Transfer Tax. The Property Tax is currently the only tax the City has local control over. One argument that proponents of Home Rule note is: The current necessity of having to raise property taxes, as the cost of services in the City (Fire, Police, Public Safety and more) go up will place an undue burden on Home Owners and especially on retirees on fixed budgets and lower income families.

  Those in favor of Home Rule, believe the Earned Income Tax would be a better way to pay for some of these Gov't services as it is directly tied to one's earnings. If your pay goes up, the tax goes up and vice versa if/when your pay goes down. 

  There are also restrictions within Home Rule as to how much taxes can be increased in any given year. 

  Home Rule is not new to PA... there are Counties and other similar cities across the State that have adopted Home Rule. In fact, Home Rule has been voted on before in Lancaster. 

   Can the EIT and Property taxes be raised in the same year. Can the Real Estate Transfer Tax be increased, making housing potentially even more expensive, what happens if Home Rule isn't adopted? How would an increased Real Estate Transfer Tax in Lancaster City impact the housing market and your business? 

  This quick read is not designed to sway you one way or the other. This is meant to give you a bit of information about a large decision that is being voted on, by City residents only, on Nov 5th. 

Here is a link to an FAQ about Home Rule in Lancaster City, click the link:  https://www.homerulefaq.com/

More information can also be found at www.CityofLancasterPA.gov