Responding to comments by Allegheny County residents’ who are concerned about the Peduto plan to merge some City and County services because they fear County taxpayers that do not live in the City will get taken to the cleaners, a Pittsburgh resident lambasted their concerns claiming that visitors and commuters do not pay nearly enough to cover the costs of City services they use.
Two points: One, if done correctly and carefully through City contracting with the County in those instances where the County can do the job more cheaply with its own employees at no additional cost to County taxpayers, the concern about the City dipping further into County resident wallets would be misplaced. In any other arrangement, they have justification for being nervous.
Secondly, the Pittsburgh resident who still believes he is subsidizing city services for commuters and visitors needs to consider a few salient facts.
a. Pittsburgh’s real estate tax burden is borne heavily by the commercial sector much of which is owned by many non-residents who pay the tax. Moreover, a large fraction of employees in those buildings are non-residents, without whom the businesses could not operate at their current level, if at all. Much of the retail and restaurant business in the City is out of town spending, creating jobs for residents and non-residents. The pro sports stadiums were built principally with tax dollars form non-resident taxpayers. Ditto the Convention Center which attracts hotel occupants that enable hotels to hire people and pay City and City School taxes. Why else would every mayor want a convention center if visitors are a burden on City taxpayers?
b. Non-residents who come into the City pay the nation’s highest parking tax which is being used in great part to shore up the City employee pensions.
c. Non-residents pay the County’s RAD tax, the revenue from which supports stadiums, museums, the zoo, the aviary, libraries, cultural and arts groups and provide millions for tax relief that was unfortunately diverted by a previous mayor for capital developments that were disasters. Pittsburgh is by far the biggest beneficiary of the RAD tax.
d. Pittsburgh businesses pay at the oddly named payroll preparation tax on the gross income earned by all employees whether City residents or not.
e. State taxpayers heavily subsidize Pittsburgh schools to the tune of over $200 million and the Port Authority by almost the same amount to keep the buses and T cars rolling. And how about that half billion dollars to create the North Shore Connector. City coffers were not tapped for that boondoggle.
The City residents who complain about non-residents being a burden need to take a long look at the enormous benefits visitors, commuters, and non-resident property owners bring to the City. Taxed heavily to support the City and they do not have a vote. How’s that for fairness? In a city that spends more per capita, taxes more per capita and has more employees per capita, the complaint is doubly insulting.
