Local Government TV

Monday, February 13, 2012

Allentown EIT Tax Grab Will Divert Open Space Money

Nor-Bath Trail
Under a law passed in 2009 and amended in 2011, a 130-acre downtown Neighborhood Improvement Zone (NIZ) was established in Allentown, to defray construction costs for a hockey arena and other improvements. What was largely unknown, until a recent Morning Call report, is that even earned income taxes owed to other municipalities like Bethlehem and Hanover Township, can now be diverted to help support projects in the Queen City. This appears to include EIT money that voters have already decided to dedicate to open space.

Lower Saucon Township Manager Jack Cahalan makes that observation in the February 10 edition of The Valley Voice: "Of particular concern to Lower Saucon Township Council is the fact that funds from our 0.25 percent earned income tax for open space preservation, which was approved by a voter referendum this past November, will also be diverted under this legislation for the arena development. This appears to be an abrogation of the voter referendum which mandated that these tax funds be used exclusively for open space purposes."

No matter how you may personally feel about open space, does some back room deal conjured in Harrisburg trump voter referenda in six Northampton County communities? Is millionaire J.B. Reilly's quest to be a billionaire more important than a community's democratically stated desire to preserve open space? 

Lower Saucon officials estimate that if just 50 residents work in the NIZ, earning $50K per year, it will cost the Township at least $18,700 per year.

Both Lehigh (LTCC) and Northampton (NTCC) County's Tax Collection Committees plan to meet this Thursday, 8:30 AM, to discuss the impact of Allentown's EIT tax grab. Because of the large turnout expected, the meeting will take place at the Hanover Township (Northampton County) Community Center, 3660 Jacksonville Road, Bethlehem.

The meeting is open to the public, but bring your own damn doughnuts.

One financial expert tells me this tax grab will be limited to new employees in the NIZ, or to increases in the salaries of those who are already there. But guess what? That appears nowhere in the law, which has people like Bethlehem Tp BOC President Paul Weiss very concerned.

He'll be at the meeting.

Hanover Township Manager Jay Finnigan has already stated municipal managers should contact their state legislators and "demand that the legislature modify this portion of the enacting legislation."

Finnigan will be handing out the pitchforks.

Bangor Borough Council member David Houser has branded the tax grab nothing short of "taxation without representation."

Houser is passing out the torches.

Blogger's Note: My thanks to Retired ASD Teacher, who made me aware of the Valley Voice article.

21 comments:

  1. bernie, interesting that you credit and link the morning call about the eit story, that's more than they did for you about the browne lobby story.

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  2. That might be 50 people that wouldn't have been working at all, had it not been for this area.

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  3. Amended in 2011, was Simmons involved with this.

    Check his excessive expenses listed on his own website. After telling the voters he would pay his own way.

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  4. Am i to assume that at present allentown generated money is going to fund open space in the townships? So whats the difference of township money to fund projects in allentown? Just thought i would ask.

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  5. I checked Simmons vote he voted for the new and improved Act 26 of 2011.

    He transferred the wealth.

    He tells the voters what he thinks they want to hear, and then votes for this act.

    And then tells voters he's against it.

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  6. Simmons can't hide from his vote.

    He sounds like Nixon , when he tried to explain the Watergate scandal.

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  7. Bernie
    This guys advertising on your blog.

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  8. 1;48 am guy Bernie.

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  9. Retired ASD teacher here.

    No matter how anyone slices it, my township (Lower Saucon) and others will need to reduce funding of ongoing initiatives, or raise taxes to maintain them at current levels.

    Individually, the amount of diverted taxes might seem small, but collectively, must be significant to arena developers. If not, this portion of the NIZ legislation should be dropped immediately.

    I prefer my support of the arena to come ONLY through attendance, nothing more.

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  10. This is truly a bipartisan scam by all the local so called peoples representatives. They ALL have dirt on their hands and faces. Nowhere to hide now! Throw the bums out!

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  11. Still waiting for Lisa Boscola to call me back..three weeks ago I called and complained about the theft of our taxes. I guess this is not an important enough item to her to offer an explanation to a peon like me in local government.

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  12. Best news I heard all day. Wasted money on open space being reallocated for actual economic development.

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  13. Wait until Bethlehem, Easton or one of the boroughs lobbies for their own version of the NIZ.

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  14. This comment has been removed by the author.

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  15. All for one and one for all.

    Shaibu!

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  16. Bernie, I checked Justin Simmons Legislative Website,

    He removed all his previously listed expenses for the past year..

    Check it out. He only now has listed Jan 2011.

    He can't take the heat, probably because he lied to the voters.

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  17. Bernie he has his expenses listed for Jan 2011, Maybe he means 2012. Regardless he lists the following

    Office supplies.......$1,000.00

    More Framing.............287.00
    No mileage listed,
    He's taking the candy and going for the ice cream.....

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  18. Simmons even has expenses for Notary equipment. He must be giving government provided free notary services.

    Trying to compete with the private sector Notaries, trying to put the little guy out of business

    Just like Obama...only on a smaller scale.

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  19. This pots relates to EIT, not Simmons. I just did a post on him. If you feel a need to make comments, make them there. This is an important topic, and you are detracting from it, Mr. Deely, with your political bullshit.

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  20. Bernie, Accept my apology, like I told you before I have read your site in the past, always thought it was interesting. First time to comment.

    No, I'm not Deely and I don't know him. I also don't know Simmons and I don't live in the district. However Simmons lied to the voters and got caught. Will check your post.

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  21. Source: Heidelberg/Lynn EIT Bureau

    Earned Income Tax Return.

    Small print section, reverse side.

    "Allentown City Tax: Under Act 205, the city of Allentown WITHOLDS 1.35% from all residents and non residents. You may only claim a credit equal to 1% of the wages EARNED in Allentown; the additional .35% is KEPT by the city to be applied to THEIR DISTRESSED PENSION LIABILITY.

    Priceless,
    Eckville Press

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