The state Legislature will again be looking at changes to the
occupational privilege tax as the new session gets into full
gear.
On Monday, state Rep. Martin Causer, R-Turtlepoint, said
legislation will be reintroduced shortly in support of changes made
to the tax last year, namely the tariff will be incrementally
deducted from paychecks throughout the year instead of in one lump
sum at the start of each year. It would also exempt anyone earning
less than $12,000 annually from being subject to the tax.
However, the legislation – which was renamed the Local Services
Tax – was vetoed by Gov. Ed Rendell last November, citing a short
time frame for municipalities to institute the changes in
preparation for the new year.
The veto was also backed by the Pennsylvania League of Cities
and Municipalities, Pennsylvania Association of Township
Supervisors and the Pennsylvania Association of Boroughs, along
with numerous other agencies.
Both Causer and state Sen. Joe Scarnati, R-Brockway, voted in
favor of the changes. The Legislature had been looking at
overriding the veto last year, but that didn’t occur.
“The changes significantly help residents to pay the tax,”
Causer said. “At this point, we are right back at square one. The
law essentially stayed the same as before when the governor vetoed
the new changes.”
As it stands, most municipalities across the region have raised
the tax from $10 to $52, supplying extra funds for police and
emergency services, road construction and property tax
reduction.
The tax has a threshold of $52. If a person works in a
municipality that is at the $52 threshold, then $1 will be deducted
each week under the new taxing structure.
“I still support the changes made the last time,” Causer said,
adding he expects Rendell to sign the legislation this time around.
“It has bipartisan support in both chambers.”
It wasn’t immediately clear when the changes could be officially
implemented. Causer said the House is currently getting co-sponsor
memos for particular pieces of legislation.
“One of the first I saw to be reintroduced is that legislation,”
Causer said. “I’m pretty sure it will be dealt with quite soon in
the new session.”
On the local level, the City of Bradford awaiting any changes to
the bill. City Clerk John Peterson said previously the city already
has an ordinance in place regarding the tax, and would simply have
to make changes to it.
The city raised its rate up to $52 two years ago and has already
enacted the $12,000 and under portion of the legislation, which was
originally introduced in 2004.
The OCT tax won’t be the only piece of legislation members will
be looking at in the coming weeks.
Causer said the House will soon examine the elimination of
“ghost voting,” or when a lawmaker is not present to physically
vote on a certain measure or law but a vote is cast in his name
anyway. Some lawmakers have allegedly rigged the voting button to
register votes for them even though they are not in the
chamber.
“The members were elected by the people and they should be there
voting and not absent,” Causer said. “That is one of the
significant rules changes we will be looking at.”
In a similar vein, Causer said late night voting will also be
scrutinized. The Legislature has been burned by this before when it
passed middle-of-the-night pay raises.
“Under normal circumstances, there is no reason we can’t vote on
matters during the daylight,” Causer said, adding the state’s
Sunshine Law will also be on the agenda. “We need a new open
records law. That is something we’ve been talking about for a long
time.”
Such a movement is already getting under way in the Senate.
