York City Commuter Tax ‘A Very Real Possibility’

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

A majority of York City Council members said they are willing to consider authorizing a new tax in 2015 that would reach into the pockets of many more people.

The distressed pension earned income tax — more commonly known as the commuter tax — has been on the city’s menu of revenue-generating options for the past several years.

But, so far, city officials have been able to balance York’s budgets without wading into the controversial waters of taxing commuters’ earnings.

That might change next year.

Read more: http://www.yorkdispatch.com/breaking/ci_26465818/york-city-commuter-tax-very-real-possibility

Reading City Council Disagrees On Land-Value Tax Option

Map of Berks County, Pennsylvania, United States with township and municipal boundaries (Photo credit: Wikipedia)

Mayor Vaughn D. Spencer’s push to switch the current property tax to a land-value tax over the next five years ran into a traffic jam with City Council on Monday.

Some members flat out rejected it, and Council President Francis G. Acosta said he’d prevent any vote until he hears public support for the move.

The argument began when Gordon Mann, senior consultant with Public Financial Management Inc., the city’s Act 47 adviser, said it expects to have a recommendation on the proposal in 30 days.

“On the other hand, we have had a lot of conversations about it, and I need to have some feedback from council,” said Eron Lloyd, Spencer’s special assistant and point man for the land-value tax, which he says will encourage economic development.

Read more: http://readingeagle.com/article.aspx?id=503411

Reading Considers Consultant’s Proposal For Budget

The city of Reading and its outside consultants have come up with a new tax plan using a complex and untested state law to pay for the 49 percent hike in pension contributions the state is requiring it to make in 2013.

Essentially, Act 205 says cities facing sudden dramatic pension-cost increases can levy a so-called distressed pension tax, either as a separate property tax or a separate earned income tax. But every nickel collected has to be used to pay off that obligation, not spent anywhere else.

At City Council’s Wednesday night budget session, the consultants recommended applying it to the earned-income tax – using the same rate for both residents and commuters – since the administration and council don’t like the 15 percent property tax hike that’s already in the budget.

Gordon Mann, a consultant for Public Financial Management who is leading the team, said the tax cap is based on a complex formula comparing pension contributions and city payroll for three years.

Read more: http://readingeagle.com/article.aspx?id=424643

City Of Reading Budget Plan Calls For 15% Property Tax Hike

 

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

Mayor Vaughn D. Spencer, angry at the city’s outside consultants who he said forced an austerity plan on the city at the last minute, on Wednesday presented a $73.4 million proposed 2013 budget that includes a 15 percent property tax hike.

But Spencer said he didn’t support the spending plan.

“This forced austerity plan suggests that we continue on a narrow pathway where our citizens pay more and get less,” he told City Council.

Council members agreed.

Read more:  http://readingeagle.com/article.aspx?id=418705