Posted on 11/23/2004 6:53:24 AM PST by Josh in PA
City may avoid 1-mill tax hike
Those who work in city may have to pay four times more
R.A. Walker Sun-Gazette Staff
A 1-mill city property tax increase may not be needed next year.
Mayor Mary B. Wolf said a measure passed the state Legislature over the weekend to replace the $10 occupation privilege tax with a municipal services tax of up to $52 on each person who works within a community’s boundaries.
The mayor said the measure, if signed into law by the governor, would generate more than a $1 million revenue if City Council approved setting it at the maximum allowed.
She said such an infusion of revenue would enable the city to hold tax property tax rates at a level no higher than the 5-percent increase allowed in the year following a reassessment.
The city’s property tax rate in the wake of the countywide reassessment would be adjusted downward to 8.1 mills to be “revenue-neutral,” or about 8.5 mills if the city wanted to take the whole 5 percent revenue increase it is allow.
Earlier this month Wolf said she would ask for an additional 1-mill property tax beyond the 8.5 mills, if the municipal service measure did not pass.
Each mill of city real estate tax in 2005 would generate about $857,000, city officials said last week.
Wolf declined further comment on her budget proposal until after she presents it to City Council tonight and made no definitive statement about whether she will request a tax rate beyond the break-even 8.1 mills.
The mayor did, however, acknowledge she will recommend council set the municipal services tax at the maximum $52 and will not recommend an additional 1 mill increase in property taxes.
Wolf said passage of the new tax has “made a significant difference” as she and her staff fine-tune the budget package.
The municipal service fee can be charged anyone working in the city and earning more than $12,000.
State Rep. Steven W. Cappelli has been keeping the city administration posted on the progress of the legislation.
Cappelli was unavailable for comment Monday, but Mike Miller, his director of special projects, said the measure cleared the final legislative hurdle Sunday.
I can remember when employers REQUIRED you to live in the city where you worked. Now they are talking about charging a higher tax on those who do?
This is a state measure, not a local initiative.
Yes.. the state "allowed it", I believe they had a limit on how much a community could charge for OPT, but it's up to the local communities on whether they want to do it.
They jacked up the limit to $52, and Wolf is jumping at it.
The demokkkRATs running York and talking about the same thing, here. The lib-dems overspend and then need to raise taxes to cover their overages, instead of reducing spending and cutting services.
I'm glad I live and have my business outside of York City.
I foresee jobs fleeing from that city.
No, the jobs aren't leaving.. This isn't affecting them. It's not costing the companies a nickle.
The City has been fiscally irresponsible, and they have two choices to pay it, either OPT or raising property taxes, which would drive people out.
The only think OPT does is punish people who live outside Williamsport who come to work in Williamsport, which is why even Republicans in the city are catering to it. There is no accountability for this tax.
Votes/City Residents can say, "Oh well, my property taxes aren't as high, it all breaks even." People outside the city who come into work, get jacked up $52 the first week in January and there is nothing they can do except shut up and take it, or find a lower paying job outside the city.
OPT is dirty local/state level GOP trick to pad their own fiscal irresponsibility.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.