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Friday, October 03, 2014

NorCo Council Unanimously Condemns Easton Commuter Tax

Controller Steve Barron
On the day after a judge determined that Scranton's commuter tax is illegal, Easton Mayor Sal Panto announced his intention to raise the commuter tax there to 1.95%, up from the 1.75% when it was first adopted in 2012. This announcement couldn't come at a worse time for many Northampton County employees. Executive John Brown has proposed a Budget next year with no payhikes, and has already begun the process of cutting their health benefits. At the suggestion of District Attorney John Morganelli, Brown has agreed to review the tax to determine whether it should be challenged. Northampton County Council has decided to send a message, too.

Last night, as Mayor Panto stood in the back of Courtroom #1, Northampton County Council voted unanimously to condemn the commuter tax and the proposed increase, calling it a form of "taxation without representation that unfairly targets the workers of Northampton County." Brown has been requested to take all actions to prevent the tax's collection, including the suspension of collection and the filing of a declaratory judgment action.

This tax was previously condemned by Council when it was first enacted in 2012, but leaders deferred making a formal challenge.

"We fought wars over this," noted Controller Steve Barron, who pledged to join in any law suit filed by the County. "Stop collecting it," he suggested. "Let him sue us."

Panto had nothing to say before the unanimous vote. But he has previously stated that, without the tax, Easton will go bankrupt.

The resolution, proposed by Republican Peg Ferraro and Democrat Ken Kraft is nonbinding, but is a rare sign of bipartisan unity. You can see it below.

29 comments:

Yes, it's all about what I think... said...

While I agree that this tax is a heavy burden for County employees to bear at this time, I do not believe it is illegal.

Many local governments have been successfully collecting "commuter" taxes for years. Philadelphia, as an example, comes to mind. There was a recent move to reduce their tax because it was chasing employers from setting up shop in the City. Too bad County government can't move to the suburbs...oh wait, they can...look at the new Centralized Human Services location...the West Easton Treatment Center...maybe it's time to leave the City with non-court related offices.

Yes, it's all about what I think... said...

Did I also mention the Archives Building?

How much land does the County own on the Gracedale campus?

Maybe it's time to look into a more energy efficient, tax friendly location, perhaps even more centralized?

Taking the County wallet out of town might send a stronger message to Easton and Mayor Panto, who found it easier to tax those who have no say in his policies, or his election.

Anonymous said...

""We fought wars over this," noted Controller Steve Barron"


whatchoo mean "we", Staypuff? The only thing he ever fought over was the last bavarian cream...

Anonymous said...

barron demonstrates once again that he is a drama queen

Anonymous said...

Stoffa already responded in 2012 with condeming the tax and pulling human service workers out of Easton. Now Panto is increasing the tax? Takes a lot of fortitude, just like Executive Brown's press conference on the budget at the new human services building.

Anonymous said...

Blowhard Barron should just do his job. But he is a political hack of the worst kind. He loves the spotlight and to mug it up with crowd. He and McClueless are the Laurel and Hardy of Norco politics.

Anonymous said...

Little Stevie Blunder's grandstanding over the commuter tax is nauseating. Trying to compare Esston's unpopular but LEGAL commuter tax to our War of Independence is shameful.

Anonymous said...

Q. Will AFSCME deploy their blow up dolls in front of Easton City Hall or Panto's humble abode? It's nice when they terrorize people's families and neighbors at their homes.

Bernie O'Hare said...

"Trying to compare Esston's unpopular but LEGAL commuter tax to our War of Independence is shameful."

I agree completely with that comparison. It IS taxation without representation. We did fight the Revolutionary War over that principal. PANTO not only imposes a tax on people who can't vote to get rid of him, but decides to increase it right after a judge rules that a similar tax in Scranton is illegal. And he does so with no notice at all to the county.

That is pure arrogance, displayed after Brown managed to find the funds to help pay for a trolley for him. As far as I am concerned, this matter should be tested in county, and the county should refuse to collect it.

I concede the law is difficult to understand, but it is inherently unfair and if there is a legitimate basis for attacking it, it needs to be attacked.

Let Panto raise property taxes.

You tax it where it lives. You tax an immobile base, not a mobile base.

Anonymous said...

Sensationalizing the Barron-Panto feud for blog clicks is akin to Howard Stern creating ratings by broadcasting fights between mentally disabled people.

Bernie O'Hare said...

If you think this commuter tax is just a political football, you know nothing about the impact it has had on many county workers. It has been devastating to many of them. Sal Panto stood and listened to these people last night and knows he is hurting these people, but simply does not care. In the meantime, he gives tax breaks to the wealthy, like Mark Mulligan.

Anonymous said...

I would not refuse to collect it.

That's bad legal advice.

If Easton's tax is challenged and upheld, the tax will still be owed and workers will have an even higher bill to digest.

The argument against the tax over representation is incorrect. The tax was enabled by the state legislature-read the law in Act 205 and 44. If you have a problem with the law, then contact your state senator and rep and request that the law be repealed. Then, the legislature will have to figure out some other relief for communities such as Easton. You and others are not without representation.

Unfortunately, Easton's mayor answers to the taxpayers of Easton. It would be improper for the mayor to ignore a source of funding provided by the legislature and impose that source and additional costs on Easton taxpayers.

Perhaps the legislature needs to be educated on the pain of this taxation. But with all the grandstanding I have not heard one peep out of Harrisburg on this issue.

If the tax is ruled improper by a higher court, Easton would have to reimburse prior collections and would be unable to meet current obligations. The likelihood of bankruptcy would be a strong possibility. I think that mr Barron and mr morganelli's comments need to reconsidered in that vein. I certainly would never vote or financially support their candidacies again. Their comments are wreckless. As for this blog, nothing less would be expected

Bernie O'Hare said...

"The argument against the tax over representation is incorrect. The tax was enabled by the state legislature-read the law in Act 205 and 44. If you have a problem with the law, then contact your state senator and rep and request that the law be repealed."

The FACT is that Easton is imposing a tax on peoplke who have no say in the election of that City's leaders. It IS most definitely taxation without representation, even if authorized by the people's representatives in the land of midnight payraises.

Also, Panto dishonestly told the ET that the County did not oppose this tax when it was imposed in 2012. The FACT is that Northampton County Council, by an 8-0 vote, condemned the proposal a month before it was adopted.

That Panto could stand in the back of courtroom #1, listen to the plight of the county workers, and ignore them, is something I find both arrogant and undemocratic. But then again, he does not represent them. He knows they have no say in what he does, so he can bestow tax breaks and grants on wealthy developers like Mark Mulligan while sticking it to the little guy.

But I'm sure he'll enjoy garlic fest. It seems appropriate, bc he stinks.

Bernie O'Hare said...

"If Easton's tax is challenged and upheld, the tax will still be owed and workers will have an even higher bill to digest."

That's true, but itputs the onus on Easton. Let them use their manpower and spend 300,000 to collect $300,000 and they might decide it is not worth it.

Aside from the law, it is simply bad policy to tax a mobile tax base. You just encourage it to flee.

Anonymous said...

2:26 is exactly on point. The people's legislative representative s approved this tax. So if you and others don't like it, appeal to your representative. Otherwise stop the whining!!

Anonymous said...

I think your last statement demonstrates your real lack of depth on this issue. If the tax is challenged and found unlawful, Easton will have to reimburse millions already collected from non residents. The biggest payers of this tax are employees of Lafayette College. Another significant group are city employees who live outside of the city. Easton has no choice but to spend its precious dollars to preserve the tax. If the tax is unfair, get the legislature to repeal it. That's where energy should be targeted.

I empathize with the workers. Working for government is tough. The entire benefit structure including health benefits and pensions is about to collapse. Welcome to the club. I lost those benefits twenty years ago. My union died.

Bernie O'Hare said...

The people's representatives in the land of midnight pay raises have no authority to order Bushkill Tp residents to finance Easton without giving them a voice in its government. The best place to make this argument is a court. In the meantime, both the County and Lafayette should refuse to collect this illegal tax and force Easton to spend $1 for every dollar it gets.

Let Mark Mulligan pay it.

Anonymous said...

The county will never flee. It will cost millions to replace the capital investment in Easton. And, if they do, Easton will be ahead. We will gain vacated blocks and structures that will be converted into more high end apartments. Maybe we will find residences that our employees can occupy. We'll paint the courthouse red. If you leave, don't look back, we won't be crying. We will be celebrating. The county has done nothing for the benefit of Easton, It has carelessly seized property and destroyed neighborhoods. Rebuild elsewhere. Just make sure that you have enough room for a new jail.

Bernie O'Hare said...

The county is already leaving. They've left the Wolf Building, and have relocated archives. I suspect the courthouse and jail will stay, but expect other offices will slowly leave.

Anonymous said...

Not fair. Can't pick and choose. We don't want you. You must take it all. Jail and courts.

The tax did not have anything to do with the county leaving. The choice to leave happened before the tax.

Anonymous said...

I thought you all wanted the almighty Panto to be county executive. HAHAHA!!!!

Anonymous said...

All Lafayette college Employees also have to pay this tax. After ALL that the college has done for Easton. Well I guess the new parking garage and town hall is costing more then they thought?

Anonymous said...

Lafayette's endowment is over $700 million. A bad year in the markets will grow the pile by $35 million, tax free. Lafayette isn't just the 1%. It is the top 1% of the 1% and takes far more than it gives.

Anonymous said...

Taxing the outsiders because Panto doesn't know how to budget his money along with all the lawsuits against Easton for cops with major egos isn't fair to the county workers or anyone else who has to "commute" to Easton. Stop throwing money away by building a new parking garage...and whaever else that is not needed! Figure out another way to get the money you need for city pensions!

Anonymous said...

First of all sell Gracedale, there is $$$$$$. And NO employee's who live "outside" the City should NOT pay a commuter tax. Employee's will be paying enough next year thanks to Ron Brown. Why can't they raise taxes in Easton to help with the budget? Oh yes, ELECTION YEAR ! Everyone else has to pay taxes, why shouldn't Easton ????? Ron Brown destroyed the spirit of the County employee's. Say what you want about Steve Barron, but at least he is doing something for his employee's, I AM SURE YOU DO NOT HAVE TO PAY A COMMUTER TAX, AND I BET YOU ARE GETTING A RAISE.

Anonymous said...

Yeah, you are right. Ron Brown is the problem. Glad you are so informed on the issues

Peter J.Cochran said...

After agreeing with Mr.Panto's move on the tax- because it collects from Lafayette College too, I have been accused of propagating this issue by my own union president that stands to benefit from a shored up pension.My Union President thinks I thought this up and got it passed to stand as an issue. If anyone knows that I, Peter J.Cochran has single underhandedly attributed this TAX please stand up and say so.

Peter J.Cochran said...

Additionally ,This whole pension issue is not on Mr.Panto. He was here and out and back again. This pension issue has to do with dynamics of an economy and the POLICE buy outs a few years back and lower interest rates.Easton City is not alone on this issue . Many cities are facing the same deficit and cities are the hubs of economies. The "BURBS" are made from the upper income from the cities once removed. --but make their money in the cities. You cannot expect a great vegetable garden if you don't feed the draft mule . We here in Easton are the mules of the outer townships economy.

DRL said...

Not educated enough on the tax law to know the legalities of a commuter tax or hold a position on it's merits, but...If Easton - a 260 yr.old community - goes bankrupt because the mayor can't collect a 2/10th's of 1% tax on commuters then there is something seriously wrong with Easton's leadership. Can anyone say New Mayor?

DRL