Thursday, October 18, 2007
Mayor’s Veto—The Bigger Picture
Yesterday’s entry noted that the Mayor should veto the proposed parking tax freeze. The oversight board’s passage of the 2008 budget certainly helped the decision, and it is likely that the proposal got a very chilly reception in Harrisburg. And here’s why: the parking tax reductions are part of an overall tax reform package for Pittsburgh. It is not as though the parking tax is the only change going on. Recall that in 2005 the City was able to levy a new payroll tax and the $10 tax on workers jumped to $52. In return, the business privilege tax was cut and the mercantile tax was eliminated. These changes netted the City $17 million.
In addition, the City is getting a share of the school district’s wage tax, which is netting them money. They also don’t have to send the school district the $4 million they did when the RAD tax was created.
The parking tax reductions are part and parcel of this overall reform plan. It was not just supposed to force garages and lots to cut their rates. In fact, with many facilities holding their rates steady, they are absorbing a lot of the increased costs coming in the past few years.
In all, based on the City’s five-year financial forecast and actual collections from Controller’s data, revenue from directly-levied City taxes will stand at $320 million in 2012, up $60 million from 2000.
In addition, the City is getting a share of the school district’s wage tax, which is netting them money. They also don’t have to send the school district the $4 million they did when the RAD tax was created.
The parking tax reductions are part and parcel of this overall reform plan. It was not just supposed to force garages and lots to cut their rates. In fact, with many facilities holding their rates steady, they are absorbing a lot of the increased costs coming in the past few years.
In all, based on the City’s five-year financial forecast and actual collections from Controller’s data, revenue from directly-levied City taxes will stand at $320 million in 2012, up $60 million from 2000.
