Local Services Tax Could Triple Under Act 47 Plan

HARRISBURG — People who work in Scranton and other distressed municipalities could see a $52 annual tax triple under a new Senate amendment.

Lawmakers want to steer Act 47 municipalities to levy a higher local services tax as an alternative to a commuter tax.

The distressed cities legislation cleared a first Senate hurdle Wednesday with a comprehensive amendment added by the Local Government Committee.

The committee’s action is the latest step in an effort to overhaul the Act 47 program for fiscally distressed municipalities. Scranton, Nanticoke, West Hazleton and Plymouth Twp. have Act 47 status. Shamokin is seeking to enter the program.

Read more: http://thetimes-tribune.com/news/tax-could-triple-under-act-47-plan-1.1705643

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PEL: Scranton Needs More Than 12% Tax Hike

Map of Pennsylvania highlighting Lackawanna County

Map of Pennsylvania highlighting Lackawanna County (Photo credit: Wikipedia)

Scranton‘s state-designated recovery coordinator, Pennsylvania Economy League, has told city officials they need to raise property taxes next year higher than the 12 percent that the city budget for 2013 proposes. Exactly how much higher was not stated.

In a letter received Thursday, PEL Executive Director Gerald Cross notes that the city has not dedicated a tax millage toward paying for the city’s second unfunded debt package approved by a court this year, of $9.75 million. In that case, Judge Peter O’Brien, a senior visiting judge from Monroe County, on Oct. 31 ordered that a tax millage be dedicated to paying back this unfunded debt.

It was the same arrangement the city sought and received in January, when a different judge, Senior Monroe County Judge Jerome Cheslock, approved the city’s first unfunded debt, of $9.85 million, and ordered that this amount be paid back with a dedicated tax millage over 10 years.

The first unfunded debt package translated into the 12 percent tax hike in the proposed budget for next year, city officials have said.

Read more:  http://thetimes-tribune.com/news/pel-scranton-needs-more-than-12-tax-hike-1.1413187