House advances bill that bans commuter tax

The state House recently advanced legislation that prohibits a commuter tax on the 45,000 non-residents who commute to the city of Harrisburg daily and that relieves the city from “distressed” financial status.

“House Bill 2557 protects taxpayers, encourages private investment in the city, and allows for a healthy environment for job creation,” Rep. Greg Rothman (R-Cumberland), who wrote the legislation, said. “A commuter tax would be an additional income tax on the hard workers who live in the communities surrounding Harrisburg.”

The bill, also known as the Intergovernmental Cooperation Authorities Act for Cities of the Third Class, establishes intergovernmental cooperation authorities for certain cities of the third class; provides for powers and duties, and makes an appropriation.

A city of the third class cannot provide its residents with essential services because of a fiscal emergency. This adversely affects the health, safety, and welfare of not only city residents but other state residents, the bill said.

The bill establishes an Intergovernmental Cooperation Authority for each city of the third class. The authorities will assist cities in achieving financial stability, maintaining good budgetary practices, avoiding default, avoiding the interruption of municipal services and eliminating debts and deficits.

The bill now moves to the Senate floor for consideration.