Rental-unit taxes, fees targeted in Westmoreland | TribLIVE.com
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Rental-unit taxes, fees targeted in Westmoreland

Paul Paterra
| Saturday, June 16, 2012 4:00 a.m.
Export Mayor Bob Campagna says the borough is losing thousands of dollars in wage tax revenue because some landlords are failing to file occupancy permits when tenants move in or out. Export, like other communities, is taking steps to collect that revenue. "We're losing a lot of money," Campagna said. "That really bites into our tax. We're figuring the average wage tax is between $200 to $600 a year. If you have 20 to 50 people who fall through the cracks, that adds up." If a landlord fails to file the occupancy permit, the borough is unaware of who is living in a particular rental unit and cannot collect the tax. Export, Jeannette and Leechburg are among the communities that recently have taken steps to deal with the problem. In Export, Mike Stack, who works part time for the borough, will combine zoning duties with those of code enforcement officer. "We decided to hire Mike Stack to not only enforce the Uniform Construction Code, but to enforce all ordinances," Campagna said. "We're trying to get people to comply with the rules. A lot of renters are diluting the tax base. If (our tax collector) doesn't have the info, we don't know who to send the info out for wage tax. ...We're losing an awful lot of money in wage tax revenues for that fact." Mt. Pleasant Council is exploring an ordinance that will address issues with borough landlords, specifically getting a record of who owns buildings and who the tenants are. "We don't have any register of who owns these buildings and who's in them," said borough Manager Jeff Landy. "There's a lot of unknowns about landlords and these rentals." Council recently met with landlords to explain the situation. "We wanted to have a public meeting to let landlords know we wanted this ordinance and got a mixed reaction, so we want to do some more research," Landy said. "There's always a few landlords who would rather move somebody in and not apply for an occupancy permit and wait and see if they get caught," said Brian Lindbloom, Trafford code enforcement officer. "Some simply didn't know. There's always a few that claim ignorance. I know they know better." Jeannette and other communities also are addressing problems blamed on absentee landlords. "There's numerous (landlords) who live outside the city," said Ed Howley, Jeannette's former code enforcement officer. "They bought the property for a dime and make as much money as they can off the backs of city residents. The biggest problem is maintaining the property in a habitat safe for human occupancy. We want to make sure the residents of Jeannette have a safe, clean environment to raise a family in." In October, Uniontown City Council approved a Regulated Rental Unit Occupancy Ordinance despite the disapproval of landlords and property owners. The 28-page rental ordinance lists responsibilities of owners and occupants, information on licenses and inspection, grounds for non-renewal or suspension or revocation of licenses, violations and penalties, and other provisions. It calls for a $15 inspection fee per unit, which goes toward registration costs, technical support and the overhead of running the code enforcement office. Protesters showed up at Uniontown's council meeting in December with signs that compared the city to China. They felt the fees were unnecessary and violate the Fourth Amendment, which protects citizens from unreasonable search and seizure. Meanwhile, Leechburg Council suspended enforcement of its new landlord ordinance after 100 landlords packed council chambers earlier this year. The ordinance requires landlords to pay $100 for inspection of each rental property per year. After nearly 60 people packed Leechburg Volunteer Fire Company social hall to complain about the ordinance, a closed-door meeting was held with the borough's ordinance committee, two landlords and attorneys for both sides to hash out the complaints. As a result, council drafted a new series of amendments at its June 2 meeting. If the amendments are approved, an annual inspection will not be required. Solicitor James Favero said one-time inspections will begin 30 days after the amendments are approved. Once the inspection is completed the landlord would receive a license/occupancy permit. Another inspection would not be necessary unless tenants move out or a complaint is lodged. Also being discussed is an inspection fee, which Favero said would be about $50 to $60. Such discussions seem to be contributing to the deliberate approach Mt. Pleasant officials are taking. "I don't think we want to reinvent the wheel," Landy said. "We need to find a good ordinance that works for Mt. Pleasant. We're still looking and reviewing. We're going to be more cautious and take our time. We're not going to jump into anything."


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