17512 Columbia

“Is there a tax that everyone has to pay?” – The Pocono Record

The next two paragraphs come from a Commonwealth Policy Brief, entitled: “Taxpayers’ Guide to the Rendell Property Tax Relief Act of 2006.”

This “‘largest property tax cut in Pennsylvania history,’ 64 Act 1 of 2006 is likely to fall short of expectations for the same reasons that its predecessors did—it shifts the school district tax burden, rather than reducing it; and it provides for no meaningful controls on the real culprit behind ever-increasing property taxes: school district spending increases in excess of citizens’ ability to pay.

“The only sure way to attain control over school district fiscal policy is to subject all district tax and spending decisions to referendum—with no exceptions.”

In Columbia and some other municipalities, the “hue and cry” about taxing everyone – meaning renters – regularly comes to the forefront of school and municipal taxes. This article from the Pocono Record tackles the topic of those taxes identified as nuisance taxes: head taxes, per-capita taxes, taxes on renters, etc.

“Through the Local Tax Enabling Act of 1965, most political subdivisions in Pennsylvania may levy an additional per-capita tax at a maximum of $10. That $10 must be split between a school district and member municipality if both entities wish to enact it. School districts that approved a higher Earned Income Tax under Act 50 of 1998 are prohibited from levying per capita taxes.”

By David Pierce | Pocono Record Writer – February 13, 2013

“Want to impose a tax that nearly all adult residents must pay, regardless of individual circumstances? Though less common than it used to be, one longstanding tax available to municipalities does just that.”Polk Township is the only municipality in Monroe County that still levies a per-capita tax on every adult resident.”‘We’ve just not done away with it,’ said Polk Township Secretary Nancy May, who says the $5 ‘head tax’ has been assessed since before she began her career in local government more than 30 years ago.”Polk Tax Collector Kathy Ridenour says the tax was assessed to about 4,000 people this year.

“Those who pay it promptly are charged the discount rate of $4.90, with a penalty pushing the tax to $5.50 for late payers. College students are exempt.”Though the tax generates something less than $20,000 annually, May says Polk supervisors haven’t thought seriously of eliminating it. One reason for this, she said, is the perception that the per-capita tax is at least one levy that every adult resident must pay. Only property owners pay real estate taxes, while even some gainfully employed adults, as well as those without jobs, avoid payment of the local Earned Income Tax.

“‘This way, as long as they’re a resident of this township they pay it,’ said May of the per-capita tax. ‘If they rent, they pay it.’

“May said it once was easier to keep track of all township adult residents for per-capita tax-ing purposes, because Pleasant Valley School District compiled a list of all township residents for collecting its former occupations tax. Now that Pleasant Valley has eliminated the occupations tax, Polk looks to property tax rolls as a beginning point for tracking new residents to pay the per-capita tax.

“‘Usually if they own a home they are residents,’ May said.

“Some people voluntarily stop by the Polk Township municipal building when they move into the community to learn their township responsibilities, she added. Township employees also sort through area post office boxes to match those box holders with their ‘physical’ residences.

“Information uncovered for the per-capita tax roll also is used to see if those people are paying any required Earned Income Tax, May said.

“While some see a per-capita tax as a fairer way to ensure all residents contribute at least something to operations of a municipality or school district, state restrictions make it nearly impossible for this tax to generate significant revenue. School districts, third-class cities and some Pennsylvania counties (including Monroe) may impose a per-capita tax at the maximum rate of $5, but only if those entities don’t impose an occupations tax.

“Through the Local Tax Enabling Act of 1965, most political subdivisions in Pennsylvania may levy an additional per-capita tax at a maximum of $10. That $10 must be split between a school district and member municipality if both entities wish to enact it. School districts that approved a higher Earned Income Tax under Act 50 of 1998 are prohibited from levying per capita taxes.

“The per capita assessment is mailed each year along with the township and county tax bills.”

(SOURCE: The Pocono Record)

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