6 The Dallas Post ‘Dallas, PA Wednesday, May 10, 1989 LOCAL TAX REFORM Tax Reform ——— (continued from page 1) Representative Dietterick agrees with the basic principle of relying more on income than real estate taxes. “It's fair to shift some more onto high income people,” he said. Kozick also said a tax on in- come was fairer, and that he might favor all local tax revenues coming from that source, with the elimi- nation of real estate taxes. “I believe that some day we are going to pay on our income - that is more fair,” he said last week. While the rumor that the new taxes would be collected by the state and then disbursed back to the taxing bodies worries some "officials, Superintendent Wycallis isn't concerned. Wycallis explained how the district actually makes a profit on money borrowed to tide it over while waiting for reimbursements. He said that the county offers special low interest loans to school districts and municipalities. The interest rate is generally lower than that which the district can earn on invested funds, so the distric makes money on the amount that ‘is not used immediately. Wycallis said the Dallas district made about $40,000 last year in this fashion. While Wycallis thinks his dis- trict will do well under the present reform proposal, he thinks reas- . sessment of property would offer big benefits, too. “The biggest problem we have is our average assessed value is about $4,000,” Wycallis said. “Re- assessment would probably bene- fit all school districts.” - Kozick agrees that out-of-date assessments are unfair. He cited a casein which an acre of land on one side of a local road was as- sessed at $120, while an acre di- rectly across the road was valued at $1,040. “I think we need fairer assessments,” he said. Charlotte Williams, business manager of the Dallas School Dis- trict, is concerned about the lack of detailed implenentation plans for the reform proposal. “I think there are a lot of things that have to be worked out,” she said Thursday. While Williams and other officials have been attending meetings about tax reform for sev- eral months, she said many of the details are up in the air. Williams explained that based on recent history, the switch to an income-based tax would keep local Ballot language only hints at changes Here is the wording for the tax reform proposal that will appear on the May 16 primary ballot” The Joint Resolution No. 1. Shall Article VIII, Section 2 (B) of the Pennsylvania Constitution be amended to allow for legislation which would require or permit local government units to reduce residential real estate tax rates to the extent of additional revenues obtained from personal income taxes, while keeping all other changes in real estate tax rates uniform? tax revenues up with inflation bet- ter than the real estate tax. She said the state Department of Consumer Affairs had provided statistics that showed the real es- tate tax base growing only 2 per cent annually, while the income base grew at 7.3 per cent. “How can senior citizens, who are exempt from paying many taxes, handle a tax on savings interest?” he asked. Other administrative items con- cern many of the official polled. Representative Dietterick said the state will have to hire 500-600 workers to process and manage Wycallis thinks the change may produce extra revenues for the Dallas district. “In our situation, because of the incomes here,” Wycallis said, “It could present us with a windfall of money.” The act contains provi- sions to handle that, requiring that a taxing body reduce residential real estate taxes an amount equal to the revenue increase generated by: the income tax. : But Kozick thinks the tax will not treat everyone equally. the proposed taxes, and that will eat into the revenues generated. Kozick doesn't like the idea of centralized collection of tax money, especially since so much of the extra revenue said to come from the proposal is earmarked for Phila- delphia. We Sell Great Foreign Cars At Reasonable Prices! (1 (=Toa Tel g P11 AVATARS] oF \T7=1 4 Coli} : (Across from McDonalds) Adopt-a-pet 675-5696/829-1050 The landlord won't allow the owner of Lady to keep her although Lady is a good dog and behaves very well. She is a five-month-old Doberman- Hound mixture, black and copper in collar. Lady has also had her first series of shots. She loves attention and is looking for someone to take her home and be kind to her. Call the SPCA at 825-4111, or stop in at the Shelter on Main Road, Fox Hill, Wilkes-Barre. INSURANCE ESTIMATES FOREIGN & DOMESTIC FRAME & UNIBODY STRAIGHTENING New Novels Paperbacks Bookmarks Cookbooks Bridge Sets fl tudor “Fender Benders? Rick's Body Shop Rr. 105 W. Saylor Ave., Plains - 823-2211 MOTHER'S DAY GIFT IDEAS FROM THE TUDOR BOOK SHOP Cards ¢ Stationery Large Print Books Gardening Books Travel Books : Decorative Paper Plates ¢r NapKins Bookends ¢ BooKplates Gift Certificates * Free Gift Wrap book shop 651 Wyoming Ave., Kingston « 288-9697 Mon. thru Fri. 10:00-9:00, Sat. 10:00-5:00 Sunday 12:00-5:00 FIBERGLASS REPAIRS - Will you win or lose? \ Proposed tax changes will affect everyone By RONALD BARTIZEK Post Staft Most voters have had too little time to learn about the impact of the tax reform proposal that will appear on the May 16 primary ballot. And much of the informa- tion that has Been available from either proponents or opponents has been slanted to suit their position. The information in this article has been gathered from several sources, including the explana- tion of the act provided by the Local Government Commission of the General Assembly. Bearin mind that the overall bill is highly complex and contains numerous provisions for changes, waivers and allowances when cer- tain conditions are met. For in- stance, local taxing bodies may exempt low-income senior citizens from local income taxes. Also, there are many “carrot and stick” provisions of the act that encourage counties, municipali- ties and school districts to adopt the proposal. The major thrust of the pro- posal, called Act 145 of 1988, The Local Tax Reform Act, is to shift the burden of local taxation from an overwhelming reliance on real es- tate property taxes to income taxes. It also would permit a lower prop- erty taxrate for residences than for business property. Some critics say this two-tier property tax will not hold up in a court challenge, resulting in an even greater reli- ance on the income tax. The act would allow local mu- nicipal governments and school districts to increase income tax rates and to tax so-called unearned income; interest, dividends, capi- tal gains, etc. Inreturn, they would Gold and Silver Jewelry « Diamonds Precious Gems Fashion Costume Jewelry Leather Hand Bags Indian Jewelry Trophies & Gifts Jewelry World "The Affordable Jewelry Store." REPAIRS « ENGRAVING LAMINATING SPECAIL ORDERS Buyers of Scrap Gold Silver Antique Jewelry « Coins 86 E. Tioga St. (Rt. 6) Tunkhannock, PA 18657 (717) 836-14KT Decorate Every Room at 40% Off! SPOT & COMPLETE PAINTING TOWING AVAILABLE / FE P WALLCOVERING | SHOWROOM ~~ WHOLESALE 100 PENNA. BLYD., WILKES-BARRE 829-5663 Mon , Wed , Fri Tues & Thurs Soturday . ® J OEE Gountry 5) HER) 0) JY KS 1989 PRO-GOLF QUIPMENT & Wilson, Lynx, P.G.A., Ram, Foot-Joy, Dexter, Spalding, Tommy Armour & Many More At Discount Prices i Also See Us For Hiking, Camping MON., THURS. & FRI. 10 to 9 239 E. MARKET ST. SCRANTON ° 961-2401 Mon Wad Fn Tues & Thurs Saturday ’ CLOTHING from & Boating PH. 824-0541 OPEN: TUES., WED., SAT. 10to 5 be required to lower revenues re- ceived from residential property taxes by an amount equal to that collected from the income tax in- crease. The plan does not require that income taxes be imposed, only that if they are, residential property tax reductions must*be made also. And while the act appears to dic- tate at least a 25 per cent reduc- tion in property taxes, there are provisions to allow for less under several circumstances. Opponents of the plan com- plain that there is only a four-year period during which increases in propery taxes are not allowed, and after that there are on limits on increases. Supporters counter that there are now no limits on tax increases at the local level, so the argument that after four years taxes will skyrocket is specious. The act also would allow coun- ties to enact a sales tax of .5 per cent, with 25 per cent of the reve- nues from that tax to be distrib- uted to the municipalities in the county. Some critics of the plan con- tend that if contiguous counties do not have the same sales tax rate, i.e. if one county imposes a tax and another doesn’t, consum- ers will tend to shop in the county without a tax. In the long run, they say, counties with the sales tax would suffer declines in busi- ness and employment. The act abolishes several “nui- sance” taxes - per capita, occupa- tion and occupational privilege. But it imposes a $20 “municipal services tax”. As a condition of the act, each local governing body must appoint a tax study commission to exam- ine local tax issues and recom- mend the course of action. Public hearings must be held as part of this process, and local officials may not serve as members of their own study commission. : The commission must recon- vene and review the tax system after four years. So, who wins and who loses in all this? According to the litera- ture available, the following would be winners if Act 145 passes, and their taxing bodies accept its rec- - ommendations: * HOMEOWNERS, who may see their property taxes reduced. * LOW-INCOME SENIOR CITI- ZENS, if their local taxing bodies grant exemptions from the income tax « WAGE EARNERS WITH NO | INVESTMENTS, if the new local income tax rate is lower than the present wage tax rate. e COUNTIES, which may take advantage of incentives toreassess property and mke other improve- ments in property tax assessment, - making administration of the prop- erty tax fairer. e RETIREES, who own a home.” And the probable losers? Ww - and have only Social Security and. «; pension income. iy Nt LE | > « SENIOR CITIZENS, who don’t: .« own a home and have savings and. investment income. * RENTERS, who may have logo to court to receive the benefits of 4 property tax reduction. e ANYONE, who sells property and has capital gains, which willbe | taxed as income. ¢ ANYONE, who has substantial : savings and investment income. HIGH-INCOME FAMILIES," with relatively little property. ~~ FRANK'S LAWN SERVICE Quality Work « Affordable Rates Services include: Mowing * Brush Cutting * Tree Rémoval « Leaf Raking « Mulching ¢ Fertilizing.» Insect & Pest Management. P.A. Certified Call 696-2421 Leave message BM ACUVUE® is the first contact lens you never have to clean. (GL BAVAS) SE TIRE DR. CURTIS GOODWIN, OPTOMETRIST We take pride in our personal care. 170 N. Memorial Hwy., Shavertown, PA 18708 Telephone 675-3627 ©“VISTAKON, INC., a Gotmon sfohmon company. SERVIOTAR. Better Quality Tools Long Handle 14" Garden Shovel Bow Rake Tempered steel Forged steel head round point blade and 14 curved with turned step. teeth 4' fire-hard- sieel power collar ened lacquered ash and fire-hardened handle. Excellent for cleaning and preparing soil SALRY/Y 2800! lacquered ash handle: Lhca 128110 Garden Hoe General purpose hoe features forged steel head and 47’ | handle Blade size Yasar {hnice W x4. SALZL. 1128/09 8% 6' Wood Stepladder Household stepladder features pail shelf with slot spacing for tools. 200-Ib. capacity SADYL/ 1.24085 #WUS6 Woodlife Preservative Exclusive formula Water proofs wood and protects against swelling, warping and shrinking Clear #00903 SADLY 123290 Murray & Slocum Sts. Forty Fort (Turn on Slocum St., Across From United Penn Bank) 287-3171 Open Daily 7 a.m. to 5:30 p.m. Saturday 'til 3 p.m. J Water Seal’ Ready-to-use penetrating water repellent sollution prevents moisture damage. Use on concrete, brick, Scopes wood. May also be used on leather, canvas and otherporous surfaces. Dries clear, Can be painted SADS0/1/39613 #101 01 PRR, 52% %4 LE EEE RTE = RE [1 a i i
Significant historical Pennsylvania newspapers