The 9-12 Project of Central PA

"You Are NOT Alone!"

ALERT: Centre County Tax Press Conference; 15 July

This is potentially a complex issue because it represents a tax increase and the promise of a related property tax cut. On the face of it, this sounds just and reasonable, but in the real world of politics, things seldom what they appear. Without time to digest this issue, this organization cannot take a position. Therefore, we urge members to consider attending this press conference as 9-12 citizen reporters and asking some hard question. Then report back to the group with what you learn or write up an article for the upcoming newsletter.

Centre Daily Times

County leaders back sales tax increase
Anne Danahy - adanahy@centredaily.com

Lower property taxes in exchange for paying slightly more while shopping — that's the idea behind legislation a group of regional leaders is supporting.

Elected officials from Centre County and municipalities will hold a news conference Wednesday to promote a Pennsylvania House bill that would let counties increase the sales tax 1 percentage point. In exchange, the counties would use 60 percent of the money generated to lower real estate taxes. The county, municipalities and multi-municipal projects would split the rest.

Jon Eich, chairman of the Centre County commissioners, said the bill would help municipalities and the county pay for needed services, such as the police and 911 emergency communication.

“I think Centre County would benefit from this tax because visitors to this area are significant in number, many more than a million and a half a year,” Eich said.

He said the legislation would mean the 43,000 Penn State students and area visitors would contribute directly to services paid for by tax dollars.

After the property tax relief, the county would get 50 percent of the remaining money generated by the tax, with 40 percent going to the municipalities and 10 percent to regional projects. A board would decide which projects the money would support.

According to the state Department of Revenue, the 1 percent sales tax would generate an estimated $6.6 million in Centre County in 2009-10.

State College Borough Council President Elizabeth Goreham said it would increase municipalities’ options for generating revenues.

“We have a lot of expenses that are brought through visitors. We want visitors. We love being the host town for Penn State football,” Goreham said.

But, she said, the borough doesn’t have a sales tax or business tax. And those activities cost money. For example, traffic control and clean-up at each Penn State football game costs thousands of dollars.

Under the proposed legislation, county commissioners would decide whether to implement the tax.

If they choose not to, municipalities could force the county to participate by getting support from municipalities representing more than 60 percent of the county population.

According to organizers of Wednesday’s news conference, county and municipal officials across the state are holding similar events this week to draw attention to the House bill, “The County and Municipal Property Tax Relief and Collaborative Services Act.”

The Centre County news conference will take place at 10 a.m. in the Willow-bank Building, 420 Holmes St., in Bellefonte, and will include elected leaders from Centre County and Lewistown.
Anne Danahy can be reached at 231-4648.

Views: 6

Comment by Christine A. Pacifico on July 14, 2009 at 2:17pm
Nice job guys. Way to stay on top of things.
Comment by Greg Fasolt on July 14, 2009 at 3:13pm
All credit is due my Ann for spotting this!
Comment by Joyce C. Haas on July 14, 2009 at 7:59pm
I agree that it is tax increase being disguised as something to save you taxes. I do not support it. What they are saying is it that it will save us raising taxes elsewhere - otherwise, why would it be needed?
We need spending decrease - not tax increase.
Do not fall for this.

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