Rendell--Let Counties Raise Sales Tax--Give Half To Cities

Proposal Would Let Counties Hike Sales Tax
WHTM TV
Harrisburg, Pa. - Gov. Ed Rendell says other states have cut funding to counties significantly, in some cases by hundreds of millions of dollars. The governor says that shouldn't happen here, but in order to keep counties afloat he believes local leaders may need to bump up the sales tax.

The decision is up to individual county leaders. Rendell wants to give them the power to increase the sales tax from six-percent to as much as seven-percent.

Most residents appear to be against the idea.

"As long as it's an across the board raise and it's not staggered from county to county, I don't see the problem with it especially with the financial situation that's going on now," said Harrisburg resident Bob Bush.

"I don't have anything too profound to say except I pay enough," Sandy Gordon said.

A one-percent sales tax increase on a $20,000 vehicle means you'd pay an extra $200. Some lawmakers point out a non-uniform tax hike could affect where people do their shopping.

"If you're going to buy a car in Lancaster County or York County and one has the tax and one doesn't, where are you going to buy the car?" said Rep. Stan Saylor, R-York County. "What you're doing is pitting businesses in one county against another where you shop."

Where exactly would the new tax revenue go? Rendell suggests the counties would keep half, but financially-strapped cities would take the other half. Pittsburgh and Philadelphia already have a 7-percent sales tax.

Of course, the possible sales tax increase is a merely a proposal at this point and not a done deal. If it is approved, county commissioners would decide whether they want to adopt the hike and whether it's a full one-percent or a fraction thereof.