Warwick School District

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Act 1 Overview:

Act 1, also known as the Taxpayer Relief Act, was mandated by the state in June of 2006. This act allows the voters of each school district across the state to decide whether they want to reduce their property taxes by increasing the local income tax.

It is important to note that Act 1 does not bring in more money to the district; it is merely a shift in where the revenues will come from.

Some important facts about this tax shift:
  • School districts are required to give voters the choice of a reduction in property taxes in exchange for an increase in local income taxes prior to  the primary election.
  • If voters approve, then the local income tax will increase and local property tax bills will be reduced.
  • All of the revenue raised by increasing a local income tax will remain in the community. At least 98% will be used to reduce local property taxes. Up to 2% can be used for school district operations.
  • The choice before voters in the spring is only whether to reduce the local property tax by increasing a local income tax. The referendum does not determine whether the school district will receive funding from the state to reduce the local property tax burden using gaming revenue. It also does not determine whether the school district must comply with the limits on future tax increases that are also contained in the state's new property tax relief law.