UNIVERSITY PARK, Pa. -- For residents facing a school tax referendum on November ballots, a new booklet from Penn State Cooperative Extension has answers to their questions about Act 24 of 2001.

"Understanding Act 24 of 2001: the Optional Occupation Tax Elimination Act" is a free publication that explains the school tax reform law being considered by many school districts across Pennsylvania, according to Timothy Kelsey, associate professor of agricultural economics in Penn State's College of Agricultural Sciences.

"This publication will help citizens understand what the act does and doesn't do, and how it can be implemented in their community," he says. "Many school districts have put a referendum on local ballots asking taxpayers to change the local system of taxation. This booklet will help voters better understand the choice they face."

Act 24 allows school districts to replace an occupation tax (which assesses citizens according to their job titles) with an earned income tax. Kelsey explains that many people view the earned income tax as fairer than the occupation tax, but switching to earned income may not benefit all local communities.

"Pennsylvania's officials, school board members and administrators have been trying to improve the way we finance public schools for decades," he says. "The addition of Act 24 gives districts another option in selecting a system that meets their financial needs while not overburdening anyone. But local citizens must assess all the options and choose the system that they deem best for them. This booklet helps them make an intelligent assessment."

The booklet outlines which districts can use Act 24 and how the changes can be implemented. Tables and graphs offer such information as a regional summary of the act's potential impact, the break-even point for impact on taxpayers of selected earned income tax rates, and a comparison of earned income and occupational taxes for a sample taxpayer.

The publication features a county-by-county assessment of potential impacts of the act on earned income tax rates and lists the potential earned income tax rate increase of each county's school district (drawn from 98-99 budget data). It also directly addresses such frequently asked questions as:

-- "Will Act 24 reduce my property taxes?"

-- "Can Act 24 be used indirectly to reduce my property taxes?"

-- "How does Act 24 of 2001 differ from Act 50 of 1998?"

Single copies of the booklet are available free of charge by contacting your county Penn State Cooperative Extension office, or by calling the College of Agricultural Sciences Publications Distribution Center at 814-865-6713. Electronic versions of the booklet and more information on Act 24 of 2001 and local tax reform are available on the Local Tax Reform Web site at http://cax.aers.psu.edu/taxreform.

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EDITORS: Contact Timothy Kelsey at 814-865-9542.

Contact:

Gary Abdullah gxa2@psu.edu 814-863-2708 814-865-1068 fax