Feb 16, 2005 By Paul Sunyak 6 min read

Fayette County Commissioners Vincent A. Vicites and Angela M. Zimmerlink support the concept of allowing counties to levy a sales or income tax in exchange for reduced county real estate taxes. Vicites attended a Monday press conference in Harrisburg, where the County Commissioners Association of Pennsylvania threw its weight behind a bill proposed by Republican state Rep. Carole Rubley of Chester and Montgomery counties.

The Rubley bill would permit counties to implement a county sales or use tax of up to 1 percent, a personal income tax of up to .5 percent or an earned income tax of up to .5 percent. The earned income tax would apply to such things as interest or dividend income, while the personal income tax would not.

Under the sales tax scenario, people would pay an extra $10 on every $1,000 they spend on taxable items. Under both income tax scenarios, they would pay $5 on every $1,000 they earn, although the earned income tax would cover more sources of income.

Vicites, who serves on the CCAP tax fairness committee, said he and a dozen other county commissioners from across the state showed up to support the proposal. The three-term Fayette County commissioner said complaints over escalating property taxes rank high on his list of constituent concerns.

“It’s called tax fairness. People are concerned about their property taxes, and we have to look for alternatives. …That’s what I’m hearing from people: They want the burden taken off the property owner,” said Vicites. “I favor a sales tax, because it will lower the property taxes. It will be broader and more people will be paying taxes, which will help lower the property taxes.”

Vicites said he likes the proposed bill’s multiple options, which could be tailored to suit an individual county’s needs. He said he is less enamored with a county income tax: “I don’t really favor that. You have options (in this bill); you can choose. That’s what I like about this (legislation).”

While acknowledging that he has no idea of how much any new tax would raise for county coffers, Vicites said he talked to most members of the county’s legislative delegation while in Harrisburg Monday.

“They’re going to consider it (the bill) and read over it. It was generally positive,” said Vicites, who added, “I’ve always been for tax reform. I think that the legislature has to look at all taxing bodies when it comes to tax reform. The CCAP has made this their number one priority.”

The Fayette County commissioners increased county property taxes 60 percent this year, in order to pare down a deficit that stretches back at least to 2003. Vicites said that an increasing number of state and federal mandates – such as the $1.5 million cost of new voting machines – makes it harder for county commissioners to balance their budgets.

“We can’t control these mandates. This year alone – (for a) good example – there’s a $21 million reduction statewide in our funds for Children and Youth Services in the governor’s proposed budget. That could end up being significant increases to the counties … to make up the difference in money that’s not there,” said Vicites, making his case for change.

“How can you reign in spending when you’re getting mandates thrown at you right and left? And 80 percent or more of what the county does is mandated services. Eighty percent or more. So tax reform alternatives have to be looked at.”

Zimmerlink said that she, too, believes some type of change is needed. However, Zimmerlink said it’s imperative from her perspective that any new taxes be directly and strictly tied to corresponding reductions in county property taxes.

“(There’s) no question that we need to have tax fairness,” said Zimmerlink. “Definitely something needs to be done. I support the CCAP position that would allow the counties to have a menu of the tax options.

“But at the same token, I think if you’re going to do that, you have to reduce the county property taxes. If you’re going to do it, there has to be a substantial decrease of the taxing of real estate in Fayette County. It can’t be, for me, merely an additional tax revenue source.”

Zimmerlink said the Rubley proposal amounts to reintroduction of a bill that went nowhere previously in the state legislature, which she characterized as lukewarm to the idea and as slow to implement real county tax reform.

“From what I’ve been reading, this is not a top priority for the legislators. That’s disappointing to me. They need to make it a priority,” said Zimmerlink. “I think the state legislators need to act in more timely way. By delaying, that puts more pressure on the county commissioners. I wish the state legislators would step it up a notch.”

Zimmerlink said that the proposal amounts to a “tax shift,” but added that under any reform the county must do its part to maintain and control costs.

“The county cannot and should not simply create a new tax,” said Zimmerlink. “Simply shifting the burden from one group of taxpayers to another, without us as commissioners being responsible in controlling the costs of operating county government, that’s not what it’s all about.”

Zimmerlink also said that she differs from CCAP on the issue of having voter referendums to approve any change. Zimmerlink said that on a matter of such great importance and impact, county residents should have final say on which type of new tax, if any, they want to live under.

“CCAP doesn’t support a voter referendum to change it, but I would support one,” said Zimmerlink. “You’re talking about important issues here. This is an issue I would like to hear from the voters on. You’re taking money out of their pockets, and I think they should have a say.”

Zimmerlink added that because things move “too slow” in Harrisburg, she doesn’t realistically think any meaningful progress on the Rubley bill will occur in the next year or two. And should anything eventually happen in that regard, Zimmerlink said she hopes the effort doesn’t get bogged down as did the slots machine legislation that promised relief from escalating school district property taxes.

“I would hope that this kick-off event that many commissioners went to (Monday) doesn’t end up like this school tax reform on slots. It seems to me like anytime you have the legislators involved, the waters get muddied,” said Zimmerlink.

Fayette County Commissioner Joseph A. Hardy III did not return a call seeking comment. Neither did state Rep. Larry Roberts (D-South Union), who has championed the cause of tax reform in his 12 years in office.