Easton Commuter Tax Hearing Delayed

A lawsuit challenging Easton's controversial and unpopular hearing tax, which was scheduled for 11 am today, has been delayed. Northampton County Solicitor Vic Scomillio is asking the Court to invalidate the tax because it applies different rules for nonresidents and residents and lacks uniformity. He is also seeking an injunction to stop collection.

Though no one stated why the matter has been delayed, it is probably because of another looming lawsuit. A group of County employees are filing their own suit, and as a matter of judicial economy, it makes sense to hear both together.

NorCo Sues To Stop Easton Commuter Tax

Easton's commuter tax, which was raised from 1.75% to 1.95% last week, has been challenged in the first of what is expected to be two challenges. Northampton County filed suit toady, and a separate taxpayer suit is imminent.

The County lawsuit, filed by Solicitor Victor Scomillio, challenges the law as a violation of the uniformity and equal protection clauses in both the Pennsylvania and United States Constitution. This is because the commuter tax "imposes a higher tax rate for nonresidents."

Scomillio is seeking injunctive relief, and at a December 11 hearing, will ask the Court to order Easton to stop withholding or implementing the tax, pending a full resolution.

The Express Times quotes Easton Mayor Sal Panto as sniping at Count Councilman Ken Kraft and Controller Steve Barron, who have urged the County to stop withholding the tax now. "[Y]ou don't have the right to just violate the law," Panto argues. But if his commuter tax is illegal, then he's the one who's actually violating the law. Moreover, Panto should blame all members of Council because they have unanimously adopted a resolution urging Executive John Brown to stop collecting this disputed tax.

In 2012, Panto attempted to interject race into the issue. "There needs to be some sort of revenue sharing in those lily-white suburbs,” he said at Easton Eccentric.

Easton Commuter Tax Challenge On Horizon

Panto and a political advisor

Last week, Easton City Council did what everyone knew they would do - increase the commuter tax. They know commuters can't vote them out of office. In fact, Mayor Sal Panto has betrayed more than a bit of disdain for anyone who lives in the 'burbs.

"If you want to live in the lily white beautiful suburban community, you have to do something to pay for that," he has said to nonresidents when this tax was first imposed, implying they are racists. "The county can continue to threaten to leave and I say 'Go ahead,'" he has taunted.

Panto must be a Cowboys' fan. His kind of arrogance begs for a law suit.

He's getting one. Actually, I think there will be at least two separate lawsuits filed. One may very well be filed today.

Instead of imposing commuter taxes on the people least able to pay it, Panto should be asking the County for a payment in lieu of taxes. Has the man who claims he hates commuter taxes tried? I happen to know funds are available, where they are, and that they could be awarded to Easton without costing County taxpayers a dime.

In spite of Panto, Easton is the County seat and does provide services. It is unable to tax the County's real estate. I think a deal can be reached. Several Council members are aware of this solution and seem supportive.

Scomillio: Easton Commuter Tax Illegal

Phil Lauer (L) represents Council. Vic Scomillio (R)
represents the County.

Easton Mayor Sal Panto got a little greedy. He is the proud owner of a very unpopular commuter tax in Easton. He could force people, may of whom are paid so poorly that they require food assistance, to help pay for his Bacon Fest and the tax breaks he gives to rich developers like Mark Mulligan. Best of all, they could never vote him out of office because they don't live in Shadtown. But all good things come to an end. In Panto's case, it's because he got greedy and took the easy way out.

He wanted more money to balance his budget next year. Unlike Executive John Brown, he knows better than to try to borrow to balance his budget. Instead of knocking off the corporate welfare, he decided instead to increase the commuter tax.

DA John Morganelli, who works in Easton, dislikes the tax as much as everyone else. But I doubt very much if he would have done anything if it remained at current levels, other than grin and bear it. Then Panto decided to screw the County workers and raise that tax for the second time in two years. He arrogantly made his announcement the very day after Senior Judge Braxton concluded that a similar tax in Scranton is illegal,  After some preliminary research, Morganelli raised his concerns with County Solicitor Vic Scomillio. .

Northampton County Council, which disagrees with each other on everything else, unanimously adopted a resolution condemning the commuter tax hike. Executive Brown authorized Vic to research the matter, and we know now that he considers the tax illegal.

He warned Easton last night against adopting a new tax. Panto and his Council tabled the matter, but I suspect this thing will ultimately be settled in a courtroom.

For once, I am happy to see Council and the Executive on the same page, and on a matter that will help the worker.

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.

It's Time For Northampton County To Say No To Easton

Below is a resolution that I hope to see adopted this evening.

A RESOLUTION REQUESTING THE NORTHAMPTON COUNTY EXECUTIVE TO STOP COLLECTING ANY COMMUTER TAX IMPOSED BY THE CITY OF EASTON

            WHEREAS, on July 5, 2012, Northampton County Council, at Resolution 57-2012, expressed its opposition to any new commuter tax in Easton; and

WHEREAS, on August 8, 2012, the City of Easton voted to impose a 1.75% earned income tax on nonresidents, with no prior notice to Northampton County; and

WHEREAS, workers in Easton already pay a $52 Local Services Tax to the City of Easton; and

WHEREAS, the implementation of this tax on Northampton County workers has had a deleterious impact on many, who have seen their net income diminish; and

WHEREAS, through a 14-year planned reduction of both resident and non-resident wage taxes in the City of Philadelphia, jobs are increasing at the rate of 2,800 jobs per year; and

WHEREAS,  a recent study prepared by Dr. Robert Inman at The Wharton School reveals that commuter taxes lead to an exit of jobs and businesses; and

WHEREAS, a commuter tax in Scranton was invalidated on September 30, 2014, by the Honorable John Braxton at Lackawanna No. 2014CIV4799; and

WHEREAS, on October 1, 2014, Easton Mayor Sal Panto proposed increasing the commuter tax from 1.75% to 1.95%.

NOW, THEREFORE, BE IT RESOLVED as follows:

1)  That Northampton County Council condemns Easton’s commuter tax as well as the proposed commuter tax increase as a form of taxation without representation that unfairly targets the workers of Northampton County, our most precious asset; and  

2) That Northampton County Council condemns Easton’s commuter tax as well as the proposed commuter tax increase as contrary to the law as set forth in the Opinion of the  Honorable John Braxton at Lackawanna No. 2014CIV4799; and

3) That Northampton County Executive John Brown is respectfully requested to take all actions to prevent the implementation of the Easton commuter tax, including the suspension of collection and the institution of a declaratory Judgment action.

4) That a copy of this resolution be distributed to Easton Mayor Sal Panto as well as all members of Easton City Council.

Judge Strikes Down Controversial Scranton Commuter Tax

The Opinion, penned by Senior Judge John Braxton, is here, courtesy of WNEP.

Commuter Tax: Where Were the Public Sector Unions?

Northampton County Council adopted a resolution opposing Easton's commuter Tax. Executive John Stoffa, who understands Easton's fiscal dilemma, visited City Council and made a pitch for his workforce. But on Wednesday night, Easton adopted a commuter tax that will take effect next year. It's 0.75% of your income.

That's $225, for a worker who earns $30,000 per year.

Some County workers tell me that, even with union raises scheduled to go into effect next year, they will actually be getting less money than they do now.

And that brings me to this question - Where the hell were the public sector unions during this debate?? Since this tax has no impact on their dues, I guess it didn't matter to them.

This is just one reason why I say they're all useless.

Now, should the County add a small increase to all salaries, say 0.75%? Its workforce had nothing to do with Easton's pension woes.  Yet they are being forced to pay for a problem that can only be solved at a state level.

When former Executive Reibman froze wages for three years and laid people off, three unions suddenly became eleven unions. Now, in addition to lengthy contract delays and state cutbacks that threaten even more jobs, nonresidents will see their meager incomes reduced further.

If Council and the Executive were to work on some way to get these sums back in the pockets of people who deserve them, that would certainly go a long way to restoring morale. It might even make some workers wonder why they need a union.

Barron: Commuter Tax Could Cost NorCo Workers $300,000

Last night, Easton City Council allowed public comment on its controversial commuter tax. No member of Northampton County Council appeared. But Executive John Stoffa was there, and spoke on behalf of the County worker.

What impact will this have on them? Below are excerpts of a memo prepared by Controller Steve Barron, who took some time out from studying for the bar exam to actually do his job.

If Easton Council votes to pass this tax this evening [they were not scheduled to take a vote, Steve] county employees will begin paying an additional .75% in local income tax starting January 1, 2013. Employees who live in the City of Easton will not have to pay the additional .75% as well as any employee who works outside the City of Easton.

I obtained the list of all employees coded as working in the City of Easton from our employee database. That total number is 1,101 people. This includes full-time and part-time employees.

From this number there are 103 people that live and work in Easton so they would not be subject to the tax. This means that 998 employees are subject to the tax.

There are 77 people who are Allentown residents that [sic] work in Easton and 149 Bethlehem residents who work for the county in one of the Easton locations. I went through the Easton and Bethlehem address lists line by line to pull out people who have an Easton mailing address or Bethlehem mailing address and live in places like Bethlehem Township (some have an Easton mailing address), Forks Township, Hanover Township etc…;

It was interesting to find that 23% of the people subject to pay the tax do not live in the suburbs. They live in another city in the Lehigh Valley.

The average salary of those 998 people falls somewhere between $30,000 per year and $40,000 per year. This means that they will pay somewhere between $225 per year or $300 per year on average. This means that Northampton County employees will pay an additional $224,500 to $299,400 per year to the City of Easton.

There have been a lot of numbers floating around and rumors. Regardless of how you feel about the tax I felt it was my duty as the County Controller to do the research to provide you with accurate and correct information.

If you have any questions don’t hesitate to contact me at (610) 559-3185.

Updated 7:00 AM: Easton Eccentric - Stoffa asks for "summit" between local and state leaders over unsustainable pension costs. Easton City Council to Delay Commuter Tax Vote Until August 8 .

NorCo Workforce Considers Boycott Over Easton Tax Grab

On July 25, Easton City Council will vote on a proposed commuter tax, a 0.75% income tax on nonresidents to pay for an underfunded pension. Northampton County's workforce, most of whom live elsewhere, are unhappy. Here's what some have had to say.

Employee #1:

Simply put, a boycott of Easton businesses might have an impact on the tyranny of excessive taxation. Buy your gas somewhere else, skip Wawa for a hoagie, etc. and don't be afraid to let the powers be known that we have had enough excessive taxation due to their inequities of planning. Perhaps then Mayor Panto and his henchmen might do a better job of planning for the future. Oh, and looking at the numbers, if my math is correct, that still leaves the City of Easton $2.15 Million short. Where, when and how will the next taxation reclamation begin?

Employee #2:

I have to say I agree with [Employee #1] on this topic. Unlike many who may live AND work in the city and say, "Who cares, it doesn't effect me." I care about what I see happening around me, especially to my friends and co-workers. In this tough economy, we have watched others lose jobs, benefits, their homes (due to losing jobs) and some even their families (divorce) and lives (suicide). Here at Northampton County Prison, many of us, when it came time for our wage freeze and union contract negotiation(s), hoped for the best, expected the worst and said, "Well, it's nothing, but at least we still have benefits (cost more) and jobs, others are worse off. Truthfully, it's quite sad to see the state of things. Poor planning, bad cost management, so many things effect so many and the "big wigs" in government keep saying, "Just tax the little people and we'll keep our fat jobs and paychecks and it'll all turn out alright." I was just saying to a friend here at work the other day that when I worked at Lehigh County from 2000-2003, we were one of the lowest paid counties and we STILL got a cost of living increase EVERY Jan. 1st of 1-2% and then we'd get a raise based on performance, on our anniversary date, of 1-5%. It made sense because you work hard, you make more and as the cost of living goes up, so does the need to be able to pay for milk, gas, groceries, etc. Now that I've worked in Northampton County for the past 9 years, I see the opposite. The cost of living keeps going up and we make less and less every year, while we pay out more and more to the union(s) and taxes. It's even more disheartening to know that due to all the elderly living longer and so many people being on SSI Disability, we're all paying into a Medicare/Social Security system that most likely won't even be there for us when we're "supposed to" retire. I say supposed to retire, as the age to retire gets pushed higher and higher and people have less and less money to invest or save for "that wonderful day when they're supposed to enjoy their golden years and the fruits of all their lifelong labor." I know my mother is one of those people who has worked her entire life, usually 1 FT and 2 PT jobs/day, often 6-7 days/week, only to have 2 of the jobs she worked at long enough to be able to retire from, close down before she could, and to have health issues bad enough she SHOULD be able to get Social Security Disability, but doesn't qualify because she won't not work, nor can she afford to not work for the req'd 6 months to be able to qualify for SSI Disability. Yet I watch one after another march in here to the prison, unemployed, often on disability, for this ache or that mental defect, and they're young enough and well enough to hold down a job, they'd just rather sell drugs or drink away their days. The entire system is disheartening.

But I digress... my point was, I may live AND work in Easton, but I care about the taxes we all have to pay and about my already struggling co-workers who are currently giving what little raises they got this year from our contract to higher benefits cost and more taxes. What are they supposed to do? They oversee the very people who "rob and cheat the system everyday" and think, "why am I playing it correct on the straight and narrow, being a good citizen and paying for these people to live how they do and keep coming back in here, keep stealing from others and destroying things we all work for?" Don't get me wrong, I'm sure I and most of my co-workers aren't going to do anything stupid because we are good people and we have principles, work ethic and morals, but when is this going to stop? When is someone going to say enough?? I know I spend a lot of my hard earned $ in Easton and I often run for WAWA for my friends who get mandated and need something to eat, etc. I can honestly tell you, to support them, it would be just as easy for me to go an extra 5-10 mins out of my way to get gas/food for myself and them in Palmer, Forks Twp, elsewhere, just to prove a point to the city. That seems like a bad solution also, as I like the city. I think the police department, the mayor and the business/residential community have done alot to clean up the crime, do more to be proactive, get rid of buildings/houses that are a blight and help beautify historic store fronts and bring new small businesses into the city. I know one of my former co-workers, who is now at NCSD, has a small business with her partner called [redacted]. I am proud of them to go out and do something like this and I would hate to have to boycott them and possibly be part of the reason for the loss of what they worked so hard for because big government can't find a better way to cut costs and re-route funds, plan better, and NOT raise taxes on the already over-stressed working/commuting men and women. I've heard people say, "Well, they don't live here, they should have to pay more." I have never felt that way. The one thing that was supposed to be great about this country was that we should be able to work, play, live where we want, truly be free. There was a time when you could live here in the Lehigh Valley, where it was cheaper to live, and work in Philly, NJ, NYC and make a ton of money with higher wages and live a better life. Now, you have to live in NJ to work in NJ and it's not worth it. Many people live elsewhere because they want better schools, safety, etc. for their families. I agree Easton has come a long way from when I got "stuck here in 2003 after divorce", as a transplant myself, but people shouldn't be forced to pay more because they don't live here. This is America... we left England to get away from tyranny and taxes and in this wonderful new technological age, pay out more and have a worse quality of life than any of our forefathers probably ever could've imagined in their worst nightmares.

I know when I first moved to the prison, due to a "snafu" with administration, my co-workers in the academy didn't get a paycheck for 4 WEEKS!! I was still getting my paycheck, as I was already in the county as an employee for 6 years, so I felt aweful they were struggling to pay child support, not lose their apartments and houses, pay their bills, commute from Philly, etc. I couldn't afford to do much, but I'd pay for whomever I could every Friday when we were allowed to eat lunch out with our training administrator. I hate to see people who work hard have to suffer because of someone else's ineptitude. None of my co-workers should have to go to the very jail they are trying to work at because they can't pay their support... having worked for the money administration wanted to pass the buck blaming others for, instead of fixing the problem and getting them PAID! So again, I see an injustice and those I work with may not care if I help or not, but if this tax goes through and they are made to suffer further by having to pay out more of their hard earned money to a City Govt. that can't "get their head out of their ass" when it comes to spending and planning/budgeting, I will sadly have to boycott this wonderful city I live in also. Just my opinion and my thought on the subject. Take it for what it's worth.

Employee #3:

Tax is fine, but they are taxing the wrong people. THEY SHOULD TAX ALL THOSE NJ & NY IMPORTS THAT STILL WORK IN NJ & NY BUT MOVED HERE FOR A TAX RELIEF. That movement has put a strain on our school ( I have to pay school taxes & never having children), fire, police & EMT departments. Not to mention the toll that it puts on our farm land & roads. I find more deer along the side of the road than ever before cause they don't have any other place to go. Cut off the border invasion!!!!! There isn't a toll to go back to NJ, but you have to pay to leave it.

Panto to NorCo Council - Stay Out of our Business

The Commuter

Last week, Northampton County Council unanimously adopted a resolution condemning Easton's proposed commuter tax, which is scheduled for a vote on July 25. It's a non-binding resolution, and appears to have succeeded only in annoying Easton Mayor Sal Panto, Jr.

Panto has objected to "County Council's injecting their nose in city affairs." But since the County's Easton workforce is at least 700, this is very much a County issue, too.

Most of these people are modestly paid. Some are on food stamps. County Council and the Exec have a duty to look out for them. If not them, who else? Based on Panto's remarks, it would not be him.

Nonresidents already pay Easton a 1% earned income tax, although that money is shared with their hometown. Easton wants to hike that tax to 1.75%, and keep the entire increase to pay into its underfunded pension plans. The commuter tax, if enacted, will pay for less than half of what Easton needs to pay for its pensions.

According to Panto, the real culprit is Act 111, a state law that provides binding arbitration for police and firefighters, who are then prohibited from going on strike.

The issue with the public unions that most individuals here fail to see is that cities must negotiate within the framework of Act111 adopted by --- you guessed it, the state. Join us in getting this 50 year old bill amended to include just a few things like "ability to pay." Chambers of Commerce have joined our effort in pension and Act 111 reform. I support our city employees and I support their need for retirement planning, just not at 75% of compensation while paying into a plan that is based on a lot less. Where does the 75% come from ------ state Third CLass City Law and Arbitration awards by a neutral that doesn't take into account the "ability to pay."

Without question, Act 111 is unfairly slanted in favor of public sector unions. The Coalition for Sustainable Communities claims that binding arbitration is "strangling" Pennsylvania communities, and is the reason that 41% of Pennsylvanians live in financially distressed municipalities. "Prosper or Perish," a Study commissioned by the City of Lancaster, reaches the same conclusion.

Here's some of the changes proposed:

* Ensure that standards for awards include a justification of the award based on the evidence presented and a calculation of new costs – a municipality’s ability to pay;
* Prohibit post-retirement health care and pension benefits not required by statute from being the subject of collective bargaining;
* Penalize either party for failing to engage in good faith bargaining;
* Start the collective bargaining process earlier in the year and require arbitration to be requested earlier;
* Expand the list of arbitrators to 7 instead of 3;
* Require the cost of arbitration be shared equally between both parties;
* Require arbitration sessions be open to the public; and
* Broaden avenue for appeal process and for municipal relief when the Auditor General identifies an illegal pension benefit.

Senator Jane Earll (R-Erie) is currently seeking co-sponsors for a bill to reform Act 111. Police and fire unions have already called it an "attack."

if I were King - or the Governor of Wisconsin - I'd just refuse to collectively bargain with the public sector, who needs no union. But absent this drastic and possibly incorrect approach, these reforms seems entirely reasonable.

We fought a civil war to abolish slavery, even if it is at the hands of public sector unions who are shackling the rest of us.

We also fought a revolutionary war to end taxation without representation, and that is what Easton's commuter tax means.

Until Act 111 is reformed, what can Easton do?

First, it can pressure state representatives, who are notorious for failing to take positions on anything until they are backed against a wall. It's election time, which might be a good time to get some movement.

Second, Easton could at least ask Northampton County and Lafayette College, the City's largest employers, for some kind of help. But that won't happen if you tell them to stay out of city affairs.

Hearing on Easton Commuter Tax Tonight

Easton Eccentric reports that there will be a hearing at 6 PM tonight for public input concerning Easton's proposed commuter tax.  A vote is scheduled for July 25.

Updated 11:00 AM: I've was informed via comment that the hearing is actually next Monday, July 16. This has been confirmed by the City Clerk.

Easton Commuter's Tax Cometh

It's ironic that Easton is one of the first places from which the Declaration of Independence as proudly proclaimed in 1776. Back in those days, Easton was at the forefront of a movement that condemned taxation without representation. But now its City Council is poised to do just that by imposing a 0.75% income tax on nonresidents, called a commuter tax. 


It will use the revenue to fund its pensions. Like the NIZ, it's a tax grab. But unlike the NIZ, which was just for Allentown, this theft is under legislation that applies to any financially distressed municipality.

Guess what? Since this law went into effect in 1987, twelve cities have enrolled in the program, but not one of them has checked out. Kinda' defeats the purpose, doncha' think? Residents and businesses head would rather head for the hills than be held up for bloated public sector union pensions.

One of these financially distressed cities, Scranton, tried a commuter tax in 1993-4. It led to lawsuits, boycotts and a great deal of evasion by nonresidents who considered the tax unfair.

No taxation without representation.

Scranton Mayor Chris Doherty argues the law should have more teeth when it comes to public sector unions. Supposedly independent arbitrators, who decide union disputes, fail to consider a city's distressed designation in determining arbitration awards.

Doherty, who incidentally favors a commuter tax, has just slashed all city salaries, including his own, to minimum wage. It's the only way the City can meet payroll. Unions have responded with a lawsuit.

If Easton seeks a distressed designation, it will stay distressed, like every other city. Imposing a tax on nonresidents for problems caused by its own mismanagement just prolongs the problem. If Mayor Panto needs money for his pension fund, he should start with the public sector unions, not people who have no voice or vote in Easton government.

Tonight, Northampton County Council will consider a resolution, sponsored by President John Cusick, condemning Easton's proposed commuter tax. Between the Wolf building, jail and courthouse, the County employs at least 800 people in Easton. Most are commuters.


Will the public sector unions, who supposedly represent them, speak against this unfair tax? Don't hold your breath. 

First the NIZ, Now a Commuter Tax

Despite all its secrecy and, later, its bullying, Allentown's attempted tax grab from other municipalities has blown up in its face. Instead of waiting for an adverse decision from Commonwealth Court, the state legislature will change a 2009 law allowing Allentown to use tax money that belongs to other municipalities.

Chalk one up for the good guys. 

But the battle is far from over. Another Lehigh Valley municipality, Easton, is ready to shake down nonresidents who work in Shadtown with a commuter tax.

Courthouse workers, some of them on food stamps, will see more of their hard-earned money going out the door. 

I'll have more about this next week. But when NIZ cheerleaders like Mike Fleck sit on Easton's board as he does, expect to get hosed.