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The Sentinel

An Eye on the Penn State Administration


Power in the Tax

This past Monday, I attended the Borough Council Meeting. One thing that I heard, really got my attention. Apparently students do have a major economic impact.

Silvia Lawrence, a Borough Council Woman made a statement which proves the impact of students on the economy.

“The Real Estate Tax is the primary income for the borough”

These real estate taxes apply to property ownership and are based on the assessed value of your property.

If you are a renter, which most students are, these taxes are passed from the owners, onto you, by masking the taxes within your rent.

Since there is an amazing amount of properties that are rented within the borough, this translates into major income for the borough.

Additionally, think of all the businesses in State College that have to pay these Real Estate taxes. Would these businesses be here without students? Would there be 25 pizza shops to pay taxes?

In an interesting note, if you are a full time homeowner, the real estate tax is much less because you apply for the Homestead Exclusion.

If you can prove that your home is a primary residence, and not used for rental or business, the tax is drastically reduced.

This came as a shock to me as I have heard from certain State College residents, that students do not pay as much in taxes, therefor do not truly gain the right to speak about issues.

Well Silvia Lawrence seems to think otherwise, as the borough relies heavily on students for income.

Lawrence went onto say, since the business privilege tax was removed, the borough really only has the Real Estate tax for major income.

While borough residents do pay a high amount in taxes which should be respected, it is important to not forget that students are a large reason why the borough has income.

Respect and Understanding for one another will go along way in realizing Resident and Student contribution to the State College Community.

Remember, together we fund the State College Economy.

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Comments

actually i’d call it taxation without representation…

but if you don’t vote, who’s to blame?

Interesting how you fail to consider the additional expense that students cost the borough. I’d say student have a right to have their voice heard, but they also have the responsibility to respect where they live. Paying taxes for services used comes along with this responsibility.

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