Archive

ShareThis Page
Kittanning per-capita tax will be eliminated | TribLIVE.com
News

Kittanning per-capita tax will be eliminated

Tribune-Review
| Tuesday, November 4, 2014 12:26 a.m

Kittanning Council plans to hold the line on real estate taxes in 2015 and eliminate the borough’s per capita tax.

Officials are expected to approve a proposed $2.65 million budget in December and nix the $10 tax levied on all working adults in the borough.

The borough’s tax rate will remain at 27.5 mills, which translates to a tax bill of about $1,100 on a home assessed at $40,000.

“We’re definitely in a position to eliminate the per-capita tax,” Council President Randy Cloak said. “And we don’t feel it’s a tax that can be properly collected.”

Collecting the tax presents a challenge because it’s hard to keep tabs on which residents in the borough are employed.

Cloak said that in some cases, retirees — who don’t have to pay the tax — pay it anyway.

“They were receiving the bill, and there was no rationale,” he said. “It really becomes a nuisance.”

The revenue Kittanning stands to lose from getting rid of the tax — more than $10,000 a year — can be made up in other ways, he said.

Armstrong County collected the per-capita tax for Kittanning until 2008. The next year, the borough assumed responsibility for collecting it. Meanwhile, a number of other Armstrong municipalities discontinued it.

The per-capita tax was expected to bring in about $14,000 in 2014 — the equivalent of half a mill in property tax. Kittanning took in $11,000 in 2014 in per-capita taxes, Cloak said.

The tentative 2015 budget includes $18,000 in carryover and a savings of about $80,000 because of a change in health insurance plans for borough employees.

The budget sets aside $28,000 for major police equipment, among that, a cruiser, and $20,000 for blight elimination efforts.

With the surplus and health insurance savings, Cloak said he is confident about keeping taxes steady.

“It’s all about pinching pennies,” he said.

Julie E. Martin is a staff writer for Trib Total Media. She can be reached at 724-543-1303, ext. 1315, or jmartin@tribweb.com.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.