How Are Local Taxes Currently Used in Pennsylvania?
Use of the different local taxes available in Pennsylvania varies across local government types and school districts. Some local taxes are only available to certain local government types. In addition, state set limits on these tax rates vary across local government types. Both factors combined mean that the range of local tax choices varies dramatically across local governments and school districts in the Commonwealth. School taxes are the largest local tax bill faced by most taxpayers in Pennsylvania, accounting for 57 percent of all local taxes in 1995. County Governments Most county governments have only four local taxes available to them (the real property, occupation, per capita, and personal property taxes), but due to tax rate limitations they essentially have little choice other than relying heavily upon the real property tax. This result is reflected in county governments’ average reliance on different taxes in the state (see graphic below). Municipal Governments (cities, bor
