Protesters: Impact Fee Not Enough

A group of activists gathered outside the Pittsburgh offices of energy company EQT today, to argue that a Marcellus Shale natural gas extraction tax is needed in Pennsylvania.

About thirty protesters toted homemade signs on the steps of EQT Plaza downtown, as the EQT Board of Directors met inside. The activists say rather than forcing the public to absorb proposed budget cuts in education and environmental protection, state government should pass a tax on the extraction of shale natural gas.

Despite numerous bills in the House and Senate, every attempt to pass such a severance tax has failed. As an alternative, Senate President Pro Tem Joseph Scarnati's "impact fee" proposal would put a $10,000 base fee on each gas well, which would rise with the well's production.

But Rachel Filippini, director of the Group Against Smog and Pollution, says the impact fee proposal is flawed because it only addresses the effects of drilling in counties and municipalities where wells are located.

"Water and air pollution doesn't just stay at the well site, doesn't just stay in those municipalities. In fact, some air pollutants don't even form until they're up in the atmosphere and they've traveled many miles. And so you need to have a severance tax that's going to protect all communities, because air and water do move."

Steve Hvozdovich of Clean Water Action says a severance tax would produce more revenue than an impact fee, which could be used for environmental programs.

Governor Tom Corbett is opposed to a severance tax, but he has said he would consider an impact fee.

Township Leaders Want Tax Payments Early

A league of Pennsylvania municipalities is urging Governor Tom Corbett to distribute fuel tax funds early so they can repair winter road damage.

The Pennsylvania State Association of Township Supervisors wants about $300 million in fuel tax revenue issued about two months earlier than its regular April 1 release.

The PSATS says this “unusually harsh winter” has made local roads unsafe for motorists.

But Pennsylvania Department of Transportation spokesman Rich Kirkpatrick says there might be drawbacks to releasing the funds early.

“It’s a matter of following what is provided for in state law,” says Kirkpatrick. “Currently, those payments are supposed to go April 1. Any deviation from that gets into a number of legal and technical issues that Governor Corbett’s administration is reviewing at this point.”

The association’s executive director David Sanko says if the state doesn’t release the money early, many local governments will have to borrow money and thus pay interest.

The fuel tax revenue was distributed early last year after former Governor Ed Rendell declared a state of emergency.

PA Communities Want Tax Options

A group of Pennsylvania municipalities wants state government to implement fiscal reforms which could lift many of the communities out of financial trouble.

The Pennsylvania League of Cities and Municipalities presented a report to Governor-elect Tom Corbett today recommending new policies for collective bargaining, bidding, and especially taxation in local governments.

President Kip Allen says the League wants a “menu” of tax options that municipalities could choose from. He says many counties also want the right to increase their sales tax rates above 6%, like Allegheny and Philadelphia Counties have done.

Allen says in addition to new tax options, the league would like Pennsylvania to update some of its fiscal policies. He says for example, the state’s collective bargaining agreement with police and firefighters has been the same since 1968.

Including Pittsburgh, 19 municipalities are under state fiscal supervision via Act 47.

Extension for County Real Estate Tax Deadline

Allegheny County property owners who are late paying their real estate taxes have been given a bit of a reprieve. Due to the downturn in the economy, County Controller Mark Patrick Flaherty, Treasurer John Weinstein and Sheriff William Mullen announced today they will delay taking legal action against the property owners until September 30. Controller Flaherty says usually liens are filed in August against the properties of owners late in paying their taxes. He says the number of people neglecting the tax for their first time has increased from 3,000 to 5,000 in recent years.
Flaherty says they've delayed filing liens in previous years, and that's proven to be helpful. “It seems that if we give them one last final chance, there is an increase in the payment rate overall.” He says for those who still cannot pay the tax in full, they can get sign up for a payment plan that is approved by the treasurer’s office. If the tax is not paid by this extended deadline, that person will be put on the Allegheny County Real Estate Tax Lien list. As of 2009, there are 46,000 names on that list. The delay in filing liens will allow the property owners additional time to pay without incurring further penalties and costs.

He suggests that property owners go to or call the treasurer’s office to get the tax debt taken care of before September 29.

PA Senate Says No New Taxes

The House is expected to vote today on a budget bill that would increase cigarette taxes and impose a levy on natural gas drilling in Pennsylvania.
The House was set to act on its tax bill in late May, but Democratic leaders postponed the vote after caucus members’ support wavered.
The measure has since been amended and it now includes a cigar tax, and reduces its cigarette tax increase from 30 to 10 cents a pack.
Johnna Pro, the spokeswoman for House Appropriations Chair Dwight Evans, says Democrats feel like that’s a better approach.

"I think once folks really had a chance to sit down and look at the numbers, it more sense to do a lower cigarette tax increase, and then bring cigars back into the mix. We are the only state that doesn’t tax cigars."

The bill also includes an eight percent tax on natural gas drilling, which is nearly twice as much as the rate Governor Rendell initially proposed, and caps the discount given to vendors who turn in tax revenue at 500-thousand dollars.
Pro says the package generates about 280 million additional dollars for the commonwealth’s general fund.,
If the measure passes it heads over to the Senate, where Republican leaders say they’re opposed to any tax increases.
Meantime, the Senate Appropriations Committee has acted on the 29-billion dollar spending bill the House passed earlier this year. The panel gave the bill a ‘negative recommendation,” which moves it to the full Senate floor.

PA Officials Hope Amnesty Response Picks Up

With a bit more than two weeks to go in Pennsylvania's tax amnesty program, the Revenue Department has collected 76.9 million dollars.
That's less than half of the effort's 190 million dollar goal.
Revenue Department spokeswoman Stephanie Weyant says there were a lot of applications in the first few weeks of the program, but that traffic slowed down in late May.
She says the department expects a big surge in the final two weeks, and has recently launched another advertising campaign to help boost awareness of the program.

"We had a television commercial that ran the first three weeks. We have a new television commercial running for the last three weeks of the program. We're also continuing all of the radio, print and online advertising throughout the rest of the program."

The General Fund is counting on at least 190 million dollars from the effort to balance the budget. Anything less would add to the state's 1.2 billion dollar revenue gap. Weyant says more than three quarters of applications came in during the final two weeks during the last amnesty effort, so she's confident the program will reach its financial goal.

"We know from last time that about 74 percent of people waited until the last two weeks before the deadline to apply. So if that holds true this time, we plan to reach the 190 million dollar goal."

Weyant says they advise people not to wait until the last minute because they anticipate the phone center will be very busy in the coming weeks.

Tax Delinquents Can Still Take Advantage of Pennsylvania Tax Amnesty

Thirty one days remain for those who have have unpaid back taxes in the Commonwealth. The Pennsylvania Tax Amnesty Program received 24,433 completed or somewhat completed applications in the first three weeks. The largest payment so far was $548,284.00 for corporate taxes.

Pennsylvania Department of Revenue spokesperson About two thirds of the payments have been from businesses.

For a short period of time, the Pennsylvania Department of Revenue is waiving 100 percent of penalties and half the interest for anyone who applies for tax amnesty online. It began on April 26th. By June 18th, it is expected to net $190 million for the current fiscal year.

For more information visit www.pataxpayup.com

North Hills Republican Says .3% Tax DOA

This week, Pittsburgh Mayor Luke Ravenstahl proposed an income tax on anyone who works in the city. The.3% tax would be used to keep the city’s pension program as part of a package of options to help right the city's underfunded pension system. State Representative Mike Turzai of Bradford Woods says there is no chance the tax will ever be enacted. Before the city could collect the tax it must be approved by the state legislature and Turzai says there is no support from either side of the aisle. “It’s a non starter,” says Turzai. The Republican Lawmakers says the legislature will consider new revenues for the city but only after the pension system is reformed. Truzai says he city needs to look at the making cuts, privatization and using a more private sector type model “but a percentage tax will never be allowed,” says Turzai.

Ravenstahl says the tax is part of a larger reform effort. The tax would replace the $52 annual local services tax. The city must shore up the pension fund and find a way to sustain it by the end of the year to prevent the state from taking over the plan.

Most Pennsylvanians Oppose Sales Tax Plan

The majority of Pennsylvania voters aren’t on board with Governor Rendell’s proposal to lower the sales tax rate and expand its base.
Just three in ten people think broadening the sales tax base while lowering the rate from six to four percent is a good idea.
Franklin and Marshall College Poll director Terry Madonna says that’s according to the school’s new survey.

"So that’s one of the reasons Governor Rendell is having this huge problem as he moves around the state trying to sell this sales tax. By and large, the voters in the state are not in favor of it."

The sales tax proposal is the centerpiece of Rendell’s plan to create a stimulus transition fund. The proposal also includes a tax on smokeless tobacco and cigars, which is popular with voters.
The poll says six in ten respondents support that idea. A tax on natural gas drilling is also unpopular, with only 35 percent supporting the levy.
The survey interviewed a bit more than 11-hundred Pennsylvania residents.

Tax Relief Changes Proposed

Pennsylvania Auditor General Jack Wagner is urging lawmakers to simplify the application process for gaming-based property tax relief.
Wagner says the current county-by-county property tax relief system is too confusing.
He says a major issue is the fact property owners need to fill out an application in order to receive a tax reduction funded by revenue from Pennsylvania’s casinos.
Wagner, a Democrat who’s running for governor, says a study of several counties shows many people just don’t get around to doing that, so lot of revenue is going unclaimed.

"And with those 49 counties alone, I stand up here and can absolutely say there are at least a hundred thousand property owners not getting property tax relief from gaming revenues in Pennsylvania."

The size of rebates fluctuates by school district, but Wagner says they averaged out to 189 dollars last year. County tax assessors process relief applications, but Wagner wants the Department of Revenue or another statewide agency to assume more oversight.

Public Hearing on Taxing Large Non-Profits

A public hearing on taxing large nonprofits is taking place tomorrow in Pittsburgh. The state Senate Democratic Policy Committee is convening the meeting and speakers will include city and county elected officials as well as non-profit administrators. Allegheny County Senator Wayne Fontana says he wants two questions answered: should non-profits be taxed? And if so, what's their fair share? He is quick to point out that he is only talking about large nonprofits that own property and use city and county services without paying. Fontana already has legislation in the state senate that taxes non-profits based on the square footage they own, but he says he's open to changing the legislation based on ideas and information that come from the hearing. He says every time there's a budget shortfall the idea of taxing non-profits comes up, and it's time to "get it over with."

The hearing will take place at the Pittsburgh Federation of Teachers' Hall, at 10 S. 19th Street on the South Side, Tuesday at 10:30 a.m.

City Passes Prevailing Wage Legislation

Pittsburgh City Council today approved a bill that would guarantee that workers in future developments that contain city funding earn wages that are based upon the average earnings of their peers in the market. The vote on the legislation was unanimous but came after a shouting match devolved in council chambers. Councilman Patrick Dowd tried unsuccessfully to un-table a series of amendments that he voluntarily tabled when the bill was still in committee and eventually ended up in a shouting match with Council President Doug Shields over his right to be heard by the council. Councilman Peduto was able to introduce amendments that clarified how grocery stores were to be considered and also added a fine for violating the measure and eased reporting regulations among other things. The legislation will apply to projects of more than 100,000 square feet or 25,000 square feet for grocery stores that get $100,000 or more of city grants, favorable loans, financing, discounted land or infrastructure help. When approved the legislation received a standing ovation from the members of the audience.

Also passed today was the city's budget that did not include the 1% student tuition tax.

An Alternative University Tax

A Pittsburgh Councilman says he’ll propose an alternative to the tax bill on university tuition in council next week. Councilman Ricky Burgess says his legislation would take the burden off students’ tuition bills, and instead push universities to help the city by having them willingly pay in lieu of paying taxes. Burgess says universities have other “pots of money” like endowments to use, while students don’t. He says Harvard, MIT and Brown all have similar programs in place with their respective cities.

The councilman also wants the City Finance Department to assess the market value of all land owned by educational institutions, as well as estimate a per-resident cost of delivering city services to the residents of Pittsburgh.

Burgess says there is approximately $26 million in taxes universities don’t pay the city of Pittsburgh and the School Board, and that’s before calculating land value. If universities are not willing to help, he says there is no other choice than to look into putting a tax onto students' tuition.

Performing Arts Groups Concerned About Sales Tax

A key component of Friday’s budget deal has members of Pennsylvania’s performing arts communities rankled.
Over the course of the summer, Governor Ed Rendell insisted lawmakers should close sales tax loopholes to help overcome a 3.2 billion dollar deficit. During the last day of budget negotiations, leaders agreed to remove the exemption for live theatrical and musical performances.
That alarms Jeffrey Gabel, the executive director of the nonprofit Majestic Theater in Gettysburg, Adams County. Gabel says the recession has already hurt ticket sales, and an additional tax on top of local levies will make things worse.

"Even as a non-for-profit I already have to collect and impose a ten-percent tax on my tickets at the Majestic Theater. And now I’m gonna have to ask my patrons to spend another six percent in taxes? Why don’t you just put me out of business?"

Mitch Swain, the Pittsburgh Greater Arts Council’s CEO, says cultural groups do everything they can to lower ticket prices right now.

"This could affect schools and educational opportunities, where there are larger numbers of kids maybe coming in on a bus for a performance or educational opportunity they wouldn’t have otherwise. So all of the sudden that percentage starts to add up.
We’re hearing all sorts of percentages. We’re hearing other ways this might be implemented. So honestly, it’s hard for me to say how that would work, and what the effect would be."


The governor’s initial budget proposal estimated a performance tax could bring in 100 million dollars this year.

Push for Sales Tax Hikes in Counties

The sponsor of a bill allowing counties in Pennsylvania to impose a one-percent sales tax says he’s hoping for a House vote on the measure this fall.
Democratic Representative Mike Sturla, of Lancaster County, says the expected passage of a bill increasing Philadelphia’s sales tax gives him high hopes for his legislation.
Sturla explains the Philadelphia bill, if approved, would likely block a push for a statewide sales tax increase, which he thinks would have derailed his county proposal.

"In order to do that you’d have to take Philly from what is now 7, and they would be going to 8 for the one cent that they need. You would be going to 9 and I don’t think that’s tenable in the Philadelphia region."

Sturla initially wanted to give counties and municipalities the option of imposing a one-percent sales tax in order to reduce their reliance on property taxes. But an amendment to the measure divides up the tax revenues, sending half to school districts, a quarter to counties and a quarter to municipalities.
The County Commissioners Association of Pennsylvania, an early supporter of the measure, is working to restore the bill to its original form, arguing local governments need property tax relief more than school districts.
Doug Hill, the executive director of the Pennsylvania County Commissioners Association, argues school districts have “already had their bite of the apple.”

"They’ve had a couple authorizations for an earned income tax. And of course now they’re getting the gaming money, and that’s going to start going up now that the other couple casinos have opened. And we believe it’s really time to provide some relief for county and municipal property taxes."

The Senate Finance Committee will hold a hearing on a similar proposal this week.
Hill says counties and municipalities can’t keep raising property taxes, and need the flexibility offered by the legislation.