Lawrence Co. commissioners oppose state plan for sales tax

By MARY GRZBIENIAK

Mercer County officials haven’t decided a position on the tax proposal.

NEW CASTLE, Pa. — Lawrence County commissioners think a county sales tax could hurt the county and plan to meet with all five area representatives to the Pennsylvania Legislature to make their feelings known.

In doing so, the commissioners are going against a group of influential government groups, including the County Commissioners’ Association of Pennsylvania, which helped develop the proposal.

The groups are pushing the measure, which was introduced in the Legislature in April, as a way to generate new revenue to ease governments’ fiscal problems.

Lawrence County Commissioner Dan Vogler said Tuesday that he fears the legislation — which would allow Pennsylvania counties to impose a 1 percent sales tax — could hurt the county.

Commissioner Steve Craig agreed.

If Lawrence County enacted a sales tax and a neighboring county did not, residents would likely go to the neighboring county to shop, putting local businesses at a competitive disadvantage, Vogler said.

He added that though the property tax is stable, a sales tax would be driven by economic conditions, and revenues would drop when times are bad. He pointed out that one reason the state is having budget problems is because state sales-tax collection is down because of the economic downturn.

“We kicked it around and concluded we are all against it,” he said.

In neighboring Mercer County, commissioners are still undecided on whether to support the sales tax. Commission Chief Clerk Tim Hofius said they are gathering information on the measure and waiting to see what happens with the state budget.

If the Legislature approves the measure, each county board of commissioners would have the option to adopt the sales tax, which would not apply to food, clothing and prescriptions. Proponents say it is more fair than the property tax because a laid-off person would purchase fewer items and pay less sales tax, though his property tax would remain the same.

Counties that adopt the tax would have to earmark 40 percent for distribution to local municipalities. In addition, even if commissioners chose not to implement the tax, local municipalities could force them to do so one year after the law went into effect.

A county would be required the first year to use 60 percent of its share for elimination of nuisance taxes and for property-tax relief through millage reduction and the Homestead/Farmstead exemption.

The first year, municipalities would have to use 60 percent for property-tax relief or to relieve the burden of tax-exempt property. After these conditions are met, the remaining money could be used for the county’s or municipality’s general fund.

There would be no such requirements after the first year.

Only Allegheny and Philadelphia counties are exempted from the bill because they already have 1 percent county sales taxes.

In addition to CCAP, the sales- tax proposal was developed by the Pennsylvania League of Cities and Municipalities, the Pennsylvania State Association of Boroughs, the Pennsylvania State Association of Township Commissioners and the Pennsylvania State Association of Township Supervisors.