Saturday, November 7, 2009

Local Service Tax

The Borough is considering implementing a Local Service Tax (LST) of $52/year to be levied on people working in the Borough, like the School Teachers at NA, Borough Employees and employees at Sorgel Orchards and Children's Hospital. All this is being done so that we don't have to layoff 2 employees, an option offered in our Preliminary Budget. Supporting this tax are:
Martha Creese, Jane Hopey, Amy Sable and Mayor Kipp. Martha Creese and Bill Kipp are leaving the Council at the end of December, so this TAX would be their "parting gift" to the Borough.

Opposing this tax are myself, Dick Hartman and Andrew Hrishenko.

The final vote is due on Dec 16, 09.

A few facts besides the option of laying off 2 Borough Employees:
This tax is supposed to bring in $65,000 according to Manager Rocca, less expenses, it would amount to probably $45,000. This is all based on GUESSWORK. There is no survey to support these figures. I have asked for a SURVEY AND WRITTEN DOCUMENTATION OF COLLECTION COSTS and neither have been prepared.
This would be the worst time in the economy to be raising taxes. In addition, Manager Rocca now claims that he has FOUND AN ADDITIONAL $400,000 IN THE BUDGET (Money was always there, but he made the discovery now). The Local Service Tax will bring in a pittance compared to the $400,000 and that confirms that there is absolutely no reason to institute this ill timed, ill advised tax.
Additionally, we are going to lose our Earned Income Tax Dept. in 2012 to a centralized office in Northern Allegheny County under a new State Law. The LST will simply force us to maintain a TAX DEPT. UNNECESSARILY WITH A BONDED EMPLOYEE to review tax returns from the residents. This is an unnecessary burden on the residents of Franklin Park and I hope better sense prevails and this tax is not implemented.