The Occupational Privilege Tax...
Bleh..
The PA House and Senate just passed HB197, an attempt to help Pittsburgh out of it's financial woes but actually a terrible failure of state government.
I actually agree with State Rep. Maitland's NO vote on concurrence in Senate Amendments, and I am ashamed that my party provided the majority of the votes for this poorly written bill.
First, my laundry list...
- Changing the range of the taxing authority from a maximum of $10 to a minimum of $10 will require those municipalities that only tax at $5 to either raise to $10 per annum or eliminate altogether.
- I wanted the elimination of the occupational privilege tax, and in fact, this has been accomplished... The tax has been RE-NAMED the "Emergency and Municipal Services Tax" and is now restricted in use by municipalities for "Police, Fire and/or Emergency Services," "Road Construction and/or Maintenance," and, "Reduction in Property Taxes."
This means more bureaucracy and paperwork making sure these funds do not pay the secretary and treasurer's salary instead of the public works employees. - "This act shall take effect for tax years commencing on or after January 1, 2005" - bad idea. For municipalities that have a $5 occupational privilege tax (see point #1), this bill could make those taxes invalid. Note that a School District's $5 should count towards the $10 minimum, but there are some places where the School District has eliminated the Occupation Privilege tax and the municipality remains at $5. I need to look at my Adams County graph to find one around here..
- "This act shall take effect immediately" - bad idea, see points 1 and 3.
While I understand the need to put controls on runaway use of new taxation and limiting such to specific categories, I have a big problem with the wholesale, overnight changes to a base tax for not only McSherrystown's budget, but so many other's as well.
How many questions will arise from the passing of this bill, and will the state put municipalities minds at ease?
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