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Higher occupation tax? It works for them

Michael Aubele
By Michael Aubele
4 Min Read Dec. 13, 2004 | 21 years Ago
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Saying they would be crazy not to, officials in some of the Alle-Kiski Valley's larger communities have indicated they will institute the new EMS and Municipal Services Tax.

At their recent agenda meeting, Lower Burrell officials announced they would approve an ordinance allowing for the tax later this month. Officials in neighboring communities, such as Arnold and New Kensington, have said they will follow suit.

"Why should we be the only ones not taking advantage of it?" New Kensington Councilman Don Bowers said.

Bowers said that 17 of the city's 23 police officers live outside the city as well as many of the teachers in the New Kensington-Arnold School District, which are small examples of the larger employment situation in the city.

He said the city is looking to apply the maximum allowed for by the new law, which is $52. The tax would replace the $10 occupational tax in the communities that wanted it.

Communities don't have to set the tax at $52, and there is no deadline for approving the tax, said Greg Morgan, spokesman for the state Department of Community and Economic Development.

"Municipalities are free to assess their own needs and act upon them," said Chuck Ardo, spokesman for Gov. Ed Rendell.

New Kensington City Clerk Dennis Scarpiniti has said that applying the tax could generate more than $300,000 for the city.

The money, however, would be designated for specific uses, such as police, fire and emergency services, road construction or maintenance, or property-tax reduction.

That's exactly where the money is needed in growing communities such as West Deer, Township Manager Jason Dailey said. West Deer also is considering adopting an EMS and Municipal Services tax to replace the current $10 occupational privilege tax. Supervisors have not decided how much the tax would be, Dailey said.

"That increase would obviously fill some voids in our emergency services," Dailey said.

To make ends meet in the township's 2005 budget, Dailey said supervisors made cuts, mainly to the police and roads departments. With housing plans under construction and many miles of roads to maintain, communities such as West Deer are under constant pressure to find money for needed repairs without overburdening property tax payers.

"The major driver for us was the never-ending need to upgrade our roads, police and fire equipment, and not having a steady stream of revenue to adequately do it," Lower Burrell Councilman David Regoli said.

"Typically, the only people we can go back to are the property owners," the councilman said. "But, for the most part, it's not the property owners who are going to pay this tax. It's going to be people who use our services on a daily basis and don't pay anything for those services."

Regoli said another positive aspect of the new tax is that it doesn't affect the elderly.

Lower Burrell hasn't raised property taxes in eight years, he was quick to point out.

Although their community isn't a large one, officials in Arnold are expected to approve the new tax, said Councilman Skip Alcibiade.

"I don't see any downside for us," he said.

He added, "I don't think many communities won't accept the tax."

One of the larger communities in the Valley, however, won't be applying the tax in the near future because officials there don't want to overburden taxpayers.

"These are difficult times, and we have tried to be very prudent about our taxing abilities," said Harmar Supervisor Bob Seibert.

"Just because a tax becomes available doesn't mean you should take it up. I've been very sincere about wanting to hold the line on taxes."

Seibert said good government is holding down taxes while offering the best services possible.

"Very little is said when a municipality doesn't raise taxes," he said.

He was critical about the bailout plan for Pittsburgh, which is where the new tax originated. It was poor judgement that led to the city's financial woes, he said.

Regoli said he takes exception to the idea that adding the tax is a government escape route. Little can be done about the rising cost of services, he said.

Officials in communities such as Cheswick, Tarentum, Apollo, Saxonburg and Freeport have said they still are considering the tax.

Staff writer Wynne Everett contributed to this story.

Additional Information:

New tax considered

Communities around the Valley are considering levying a new tax created by the state Legislature's bailout plan for Pittsburgh. Municipalities can vote to replace their occupational privilege tax -- which is capped at $10 a year -- with an Emergency and Municipal Services Tax, which can be as much as $52 per year.

Here are the Valley communities considering such a tax:

Planning to vote this month: New Kensington, Arnold, Lower Burrell and Allegheny Township.

Considering it, but not scheduled to vote on it in the immediate future: West Deer (at meeting Wednesday), Harrison (at meeting Dec. 30), Cheswick, Tarentum, Apollo, Saxonburg, Freeport, Buffalo Township.

Not considering it: Harmar.

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