News

That's because communities here and across the state are lining up to cash in on heftier taxing power given to boroughs and townships as part of the city bailout package.

Penn Hills Council members said Monday they will look at hiking their occupational privilege taxes from $10 to the new maximum of $52. Moon, Clairton and Butler officials also have backed the increase in preliminary spending plans expected to be approved by the end of the year. Officials in Ross, Robinson, Mt. Lebanon and Shaler told the Pittsburgh Tribune-Review they are discussing doing the same.

Part of the bailout package passed last month, House Bill 197 allows townships and boroughs for the first time in 40 years to increase the head tax on people who work within their boundaries. People making less than $12,000 pay nothing.

The renamed "emergency services and municipal tax" can be spent on police, fire and public works departments.

For municipalities such as Penn Hills and Mt. Lebanon, the change can mean hundreds of thousands of dollars in additional tax money. For people charged with paying the increase, it means they will go from forking over less than 20 cents to $1 a week to the towns where they work. Municipalities collect the tax at the start of each year, in a lump sum.

Local officials would "be foolish not to consider raising the tax now that they can," said state Rep. Tony DeLuca Sr., D-Penn Hills, who backed House Bill 197 in Harrisburg.

Unless they operate under home rule, municipalities share half of the $10 collected with school districts.

Mt. Lebanon commissioners have scheduled a public hearing at 8 p.m. Dec. 13, when they will discuss increasing the tax from $10 to $52. They say the move would raise an additional $394,800 in revenue.

Penn Hills Finance Director Ed Schrecengost estimates the municipality would see occupational privilege tax revenue rise from $110,000 to $440,000 a year. The Penn Hills School District will still receive the $55,000 it has gotten all along, meaning that the municipality will keep about $390,000.

But Penn Hills resident Donald Sanker doesn't see the need for the higher tax.

He pointed to a projected $1.2 million surplus that could be realized through a 2-mill increase the Penn Hills Council passed last night for the 2004 budget that was not adopted earlier.

"Why do we need to raise taxes again?" he asked. "We shouldn't need to go after taxpayers for another $52 in the occupational tax."

Acting Penn Hills Manager Jim Schaffer said even with a surplus, he still supports the new tax. Schaffer said not having the new tax might affect the municipality's eligibility for state grants, because state agencies look at whether communities are collecting all available revenue at the local level.

Penn Hills Mayor Anthony DeLuca Jr., the state representative's son, said the increase is something "we have to look at."

"If Penn Hills does enact it, I'd like to see it reserved for things like bond payments and capital equipment," he said.

Officials in some communities, though, aren't jumping at the chance to jack up the levy -- at least not yet.

Findlay officials have decided against hiking the tax, largely because of worries about the impact on US Airways workers already hit hard by pay cuts, said township Manager Gary Klingman.

Bethel Park Manager William Spagnol said officials there have no plans to reopen its budget, which already is balanced and passed.

"We won't be doing anything with it this year," Spagnol said.

Moon has passed a preliminary budget that includes hiking the occupational privilege tax but also has backed a tax break that would virtually offset it. People who take advantage of the $15,000 homestead exemption backed by Moon would reap an annual savings of about $50, based on the township's annual 3.28 mill tax rate.

• Most Read
• Most E-mailed
• Latest News