Library Wants Tax Vote

The Carnegie Library of Pittsburgh wants to know if city residents are willing to raise their property taxes to help keep the system in the black. The library and its volunteers have launched a petition drive to place a referendum on the November ballot that would ask voters to raise their property taxes by .25 mills.

“That would be used exclusively, only, for the operation and maintenance of this system, which thousands upon thousands upon thousands of us across this entire city, and really this region, value as a corner stone,” said Library Board Member and Pittsburgh City Councilman Patrick Dowd.

The tax amounts to $25 dollars for every $100,000 of assessed value on residential and commercial property. The millage rate increase would raise between $3.25 and $3.5 million dollars a year. The library system is facing a projected deficit of $5 million in 2014.

Board Member and Allegheny County Judge Frank Lucchino says the library is looking at other income generating options. Also being pursued is a campaign to increase the library’s endowment, asking the Regional Asset District for more money, doubling individual giving, increasing corporate and foundation giving and working with state and local governments to find ways to boost revenues. Lucchino tired to fend off arguments that a tax increase would make the city less competitive in the fight for economic development. “The library is the future of the city and the library makes it more competitive.”

“115 years this library has been here and now the people will have a voice on deciding do they want this library to continue,” said Lucchino, “It will be up to them.”

To get on the ballot, supporters need to collect about 2,800 signatures. Lucchino has set a goal of collecting 9,000 signatures to avoid any problems if names are disqualified.

More Shale Tax Ideas Floated

Two more severance tax proposals are joining the party in Harrisburg.

The new bills come from Republicans legislators from the southeastern corner of the state where there is little or no Marcellus shale. However, they are the latest sign of growing support for some sort of tax on Marcellus Shale drilling. At least five tax or fee proposals are now in front of the General Assembly.

Senate Majority Leader Dominic Pileggi and Rep. Nick Miccarelli are both introducing levies that would direct revenue toward tax relief. The two measures are a far cry from Senate President Pro Tem Joe Scarnati’s impact fee, which would funnel money to local governments in the Marcellus Shale formation, as well as environmental and infrastructure projects.

Pileggi’s measure would fund a property tax freeze for senior citizens. According to a co-sponsorship memo distributed to senators, “all revenue would be deposited into a dedicated fund to provide a school property tax freeze for Pennsylvania residents 65 and older. …the tax burden would be shifted from seniors, many of whom are struggling to stay in their homes on a fixed income, to companies involved in natural gas drilling in Pennsylvania.” Pileggi’s memo doesn’t mention a specific tax rate, but claims the “reasonable and competitive tax” would raise $250 million over the next five years.

Miccarelli’s measure would impose a three percent tax on drillers. “The money would go directly to reducing the personal income tax from 3.07 percent to 2.99 percent,” explained Miccarelli. The tax would eventually increase to five percent, and, he claims, “would generate, by fiscal year 2015, $1.1 billion.”

Pileggi and Miccarelli both represent districts in the Philadelphia area, where support for a severance tax is most intense. Neither of their constituents would see any benefit from Scarnati’s impact fee, which limits revenue to communities where drilling is actually taking place. In his memo, Pileggi writes he, “support[s] Senator Scarnati’s approach,” but if a tax or fee becomes law, the Republican wants to spread its funds around. “My view is that the entire commonwealth needs to benefit from an extraction tax, regardless of whether or not communities have wells or pipelines in their own area,” he said, on the day Scarnati unveiled his plan. Scarnati’s chief of staff, Drew Crompton, did not respond to a request for comment on the new proposals.

Neither new tax has been formally introduced yet. Miccarelli said he’ll release his bill next week. It’s unclear when Pileggi’s plan will be unveiled.