Earlier this week it was reported that after a hearing on the proposed increase to the City’s realty transfer tax that there are not enough votes to pass the measure.  Recall that the City’s Affordable Housing Task Force proposed creating a local affordable housing trust fund (that was created here) and examined a few revenue raising measures that would have funded it, noting that any proposal should go on the ballot for an up or down vote by the City electorate.  That recommendation was not embraced, and City Council introduced legislation at the beginning of this May to raise the tax.

Would the increase have been well received by the City electorate if it made it on the ballot?  The last proposed tax increase that was considered by City voters was the 2011 increase in the property tax to provide dedicated funding for the Carnegie library system.

The members on Council opposed to the realty transfer tax increase have said they have an alternative plan to raise the money to provide revenue to the fund.  Another Council member said that the transfer tax is not a great proposal, but is “the only tool in my very, very, very small toolbox”.  If the Council member is referring to the fact that of the seven major taxes the City levies it has control only over two of them (property and realty transfer) because of the other levies altered by state law during the City’s early years of oversight and financial recovery and those levies would have to change in Harrisburg, that is accurate.  But if the City wanted to find $10 million in its $500 million plus budget then it could prioritize its functions and shutter something that is less important than the proposed fund.