How ’bout ‘dis?
In fact, I believe that we should do more to help cities and counties address the budget challenges they also face, and that’s why I am proposing to give counties the ability to broaden their tax base by allowing them to impose a sales tax increase of up to one percent on top of the state sales tax and share 50% of those proceeds with our hard-pressed cities.
That’s Gov. Ed Rendell calling on the Legislature to enact a law that would allow counties like Lancaster to implement a 1 percent sales tax within its boundaries. The money would go to help not only the stressed county budget but also Lancaster city’s.
How tempting? And how futile?
I’m waiting to hear how county Comissioners Dennis Stuckey, Scott Martin and Craig Lehman react. Has to be awful tempting but a board ruled by Republicans is not likely to raise a new tax. Not now in a struggling economy. Most likely not ever. But I’m guessing with a high sense of positivity that Mayor Rick Gray of Lancaster city would be in favor of it; afterall, the city can only raise revenue by hiking the unpopular property tax and nothing else.
But let’s face it: There will be outcry from the business community because what if Lancaster County pushes a sales tax but Berks County or York County doesn’t? Does Lancaster lose a competitive edge? I’ll bet you hear that argument, but give Rendell at least a little credit for creativity. That’s the first new revenue idea for municipal budgets I’ve heard in a long long time, and it shows the undeniable tie our urban centers have to the counties at-large. Here, Lancaster city is the hub of not only arts and entertainment in Lancaster County but health care and social services, too. Because of this, about a third of the city is exempt from property taxes, which pinches the budget.
I’m sure city officials would love a new dedicated revenue stream to help provide police, emergency, fire and public works services for not only residents but those who live in the county and drive in for work.
Don’t hold your breath. I doubt seriously whether the Senate Republican Caucus will even allow a hearing on this, much less vote in favor of it.
