Gamechanger: What would 1% local sales tax do for burdened Erie County property taxpayers?

I am writing to present a potential new option for property taxpayers, an important plan which I have long supported and outlined three years ago (as published in the Erie Times-News on Feb. 6, 2021). This option, a 1% local option sales tax, is now working its way through the Pennsylvania Legislature. If planned for and implemented in a fair and far-reaching countywide and bipartisan way, this local option sales tax can bring tremendous future relief to property owners and benefit unfunded programs or reallocate funding to a wide variety of programs.

This local option sales tax program is now only available in Allegheny (1%) and Philadelphia (2%) counties, giving them tremendous advantage over the rest of the state. In fact, Allegheny County brings in nearly $240 million per year with its local option sales tax, of which $120 million goes to the Regional Asset District (RAD) to fund libraries, museums, the zoo, historical assets, and more. The other $120 million goes to services provided by Allegheny County government.

Please recognize and understand the value of bipartisan cooperation and vision. Although this 1% local option sales tax is working through the Legislature and has momentum in a Democratic-controlled House, it needs the support in the Republican-controlled state Senate. Coming out of the House Local Government Committee are two versions: House Bill 678, the local sales tax option, and House Bill 451, which would designate some of the state's liquor tax to "municipalities with high levels of tax-exempt properties."

Having flexible but targeted funding options creates a vehicle and mechanisms to give potential for hope and opportunity to relieve multiple social service programs. It could help support them as their expenses continue to rise and avert the need for increased property taxes. The concept behind this legislation is supported by the County Commissioners Association of Pennsylvania (CCAP), which is Erie County government's own statewide organization for lobbying state government. The Pennsylvania Municipal League and Pennsylvania State Association of Boroughs also support it, to name a few. This type of legislation would also be a complement to and strengthen the success, and reduce criticism of other programs such as a City Revitalization & Improvement Zone (CRIZ) district. A certain percentage could be focused on municipal governments and therefore replace the local funds required to be diverted to the CRIZ district.

As those promoting this in the state Legislature understand, one of its many values is to creatively assist communities with a high count of tax-exempt properties. It is estimated that statewide it could generate as much as $2.45 billion for communities and I believe Erie County could generate an estimated $40 million annually (estimated $32 million by 2006 study). This would be nearly 50% of the amount now generated by property taxes countywide. That is a substantial infusion of funds without question!

The money would be generated primarily by consumer-user funds. In Erie County, revenues would be largely generated by those who spend money here, but live outside of Erie County (as all Erie Countians do when they shop while traveling elsewhere). The influx would help shift future burdens from the property taxpayers upon whom we now rely solely. We could fund a wide array of programs so to invest in our community. As an example, permanent funding could be put in place for our regional assets by creating a Regional Asset Authority and designating money to public assets such as the Erie County Library and historical assets like the construction of replicas of the Presque Isle forts and the Brig Niagara.

The money could be used to help municipal governments countywide provide services, including support for EMS volunteers. We could develop a permanent fund for economic development and permanently fund the Erie County Community College and provide free community college tuition for all Erie County students. We might also fund other necessary and critical programs. Any and all of these items would shift millions in spending.

We could begin by creating a visionary group. The goal would be to fund essential services and assets through local option methods identified by a team of community servants holding public hearings and discussions. We can be a community working together in unity for the common good. I know we have a vision and belief in our own future!

I encourage all to open our minds and prepare to create a group for public meetings and discussions. I will continue to offer my own time, talents, and vision to participate and create.

Carl Anderson III, of Erie, is a former chairman of Erie County Council.

This article originally appeared on Erie Times-News: Carl Anderson says local Erie sales tax could lift property tax burden