Though there is nothing official on the state’s Department of Community and Economic Development page as of this writing, a published report and an announcement on the website of the City of Altoona indicate that the City will be removed from Act 47 distressed status at a ceremony this afternoon. Though the news article says that today’s ceremony will mean that Altoona “…is the fastest city to leave behind distressed city status” it appears from the DCED list that Ambridge entered Act 47 in April of 1990 and was released in April of 1993. Altoona was declared distressed on May 3, 2012.
The City’s 2017 budget projected an exit from Act 47 by December 31st of this year, making today’s rescission ahead of schedule. The City collects most of the typical taxes permitted to local governments in Pennsylvania, but at the time of its entrance into Act 47 it held the unique position of being one of the few municipalities to levy a property tax only on land, not on buildings. Upon leaving Act 47, the City can no longer levy an earned income (wage) tax on non-residents, which the budget estimated would result in a decrease of about half a million dollars (total earned income taxes were budgeted at $5.09 million for 2017, and total revenue at $33.3 million).