HARRISBURG -- The average homeowner's tax cut from slots won't buy a high-definition TV or a riding lawnmower, but then again, it's doubtful that anyone's going to turn down a tax break of $169 from the state government.

While the size of property tax reductions from slots revenue will vary among 500 Pennsylvania school districts, $169 is the average amount of relief statewide when school property tax bills go out in July, Michael Masch, state budget secretary, said yesterday. In Philadelphia, the slots money will go to lower the city's 4 percent wage tax rather than property taxes.

Taxpayers will not actually see the money and may not be notified directly about how much their school taxes will be reduced. The money will go directly to school districts that will reduce the homeowner's tax bill by the appropriate amount.

The state is expected to send a notice to taxpayers, but some taxpayers have their tax bills go directly to mortgage companies that pay property taxes for them. Mortgage companies typically adjust the amount of money they require for the borrower's tax escrow account annually, which means taxpayers with a mortgage likely won't see the savings until next year.

Homeowners can contact the school district or their mortgage company if they want to know the amount of the tax reduction.

Homeowners without a mortgage should receive the notice about their tax bill reduction directly and have their bill reduced beginning in July.

Mr. Masch said Gov. Ed Rendell made "a promise to bring property tax relief through expanded gaming opportunities in Pennsylvania, and it has become a reality. And the amount of the relief will increase when all of the authorized gaming facilities open in the next few years."

The slots law, enacted in July 2004, authorized seven racetrack/casinos, five stand-alone casinos and two smaller casinos in resort hotels. So far, seven casinos are open, six at racetracks and one non-track casino in the Poconos.

The law slapped a 34 percent tax on the gross terminal revenue from the casinos, a levy that has generated $661 million in property tax relief for the fiscal year that begins July 1, Mr. Masch said.

Of that amount, $612 million will go for "general, broad-based property tax relief" for home and farm owners under age 65. The other $49 million will be used for property tax relief and rent rebates targeted just for senior citizens (age 65 and older) with incomes no more than $35,000, he said.

The amount available for seniors' tax relief is actually $173 million, with the other money million coming from the state lottery fund, as in the past. Because of slots, the number of seniors getting tax relief will almost double, to 600,000, and the maximum tax relief will jump from $500 to $650.

Since the state Legislature, at Mr. Rendell's urging, legalized slot machines nearly four years ago, property owners have been wondering when they would get the tax relief Mr. Rendell promised.

"It took us a while to get here (with tax relief) but we are finally here," Mr. Masch said.

The slots law also requires the state budget secretary to certify, each April 15, how much slots-related revenue is available for cutting school property tax bills.

Mr. Masch quipped, "So April 15 will bring some good news," to offset the bad news of the state and federal tax-filing deadline.

The tax bills that school districts send out will have three key pieces of information: how much a person's property tax would have been without slots revenue; the size of the reduction the homeowner is getting; and finally, how much the property owner still owes the school district.

The percentage of property tax relief will be the same for each homeowner in a particular school district, but the dollar amount will differ due to differences in the assessed values of homes.

The amount of property tax relief will vary among school districts because of differences in personal income, property values, millage rates and the amount of aid the district gets from the state Department of Education.

Mr. Rendell has frequently predicted that slot-machine gambling would bring at least $1 billion in tax relief to the state, once all 14 authorized casinos were operating.

The $1 billion mark will be reached, but probably not before 2012, when all the casinos should be open, Mr. Masch said. He's projecting that the Majestic Star casino will open in Pittsburgh by May 2009 and the two casinos planned for Philadelphia will open by late 2010.

The two Philly casinos have been delayed because of zoning challenges and citizen opposition.