Jan 4, 2012

Arena's First Injury

Although Allentown is more than a year away from it's first hockey game, we already have an injury. The Morning Call's Devon Lash reports that earned income tax revenue , despite a higher rate last year, has not met the projections for 2011. Starting this year, all new earned income tax from the NIZ zone, up to 130 acres, will be diverted to pay debt service for both the arena and certain kingmakers, Butz and Reilly. Now, factor in the lost tax from the former businesses in that square block, and we can see another increase just to stay even. The collection of the earned income tax is complicated. I suspect that with the changing rules between where one lives and works, the cost of record keeping and collection might approach the revenue produced. Small businesses are already overwhelmed by the paperwork. Many have taken to out source payroll, even for only a few employees. Let not a few taxpayer teeth or dollars get in the way of ribbon cuttings.

8 comments:

Anonymous said...

M.M., Will 1.35 or 1. Percent of a employees wage taxes in the N.I.Z.be deducted from their paychecks for the Arena. Also, willnon residents of the city that work in the N.I.Z. wage taxes go toward the Arena or back to the municipality of their residence as was previously done. Keep updating the facts on the N.I.Z.

michael molovinsky said...

anon 6:11, i don't know the answers to your questions. i do know that the administration will want to remain at least revenue neutral, and that NIZ details seem to be dispensed on a need to know basis. among those not needing to know were the displaced allentown merchants, the allentown school district and the allentown taxpayers.

Bernie O'Hare said...

It will not be long before the citizens of Allentown see their EIT go up to help [ay for this arena, while JB Reilly enjoys his indoor basketball court.

ironpigpen said...

I love how The Morning Call's report from D. Lash is buried on page seven or eight ...

... while the front page is occupied by a story about the demolition and a local property investor who is excited about it.

Real propaganda presented professionally, I must say ... now, please excuse me but I have to go puke.

RO

Anonymous said...

I still remember King Edwin bragging that the 1.35% EIT is much lower than many other cities in PA. He and the ridiculous cast on City Council can't wait to start cathing up to those other cities. EIT tax increases are a dream come true for King Edwin, they penalize working people and chase even more Republicans to the suburbs.

michael molovinsky said...

comparing millage and ordinances to other communities is standard bureaucrat justification for more taxes and permit fees. the best was remodeling city hall for one stop permits, including insisting on the baltimore computer system; but now you have to go to both city hall and s. 10th street (old mack factory) to get many permits, because they "expanded" into that building.

Anonymous said...

Michael,Where is Future Attendee on this issue, Has answers for your other postings.

Whethervain said...

Didn't know where else to post this frustration, so I though I'd do it here.

Just got done preparing my local ALLENTOWN income tax for 2011 and see that because neither of my 2 employers raised my LOCAL INCOME TAX to reflect the .35% increase, I am now being penalized ($4.52) because of my underpayment. I guess technically, this IS my fault, but being the good Boy Scout that I am, I would have gladly done what what CONSCIOUSLY required to bring myself into line with what was required.

Do you think they would consider removing this penalty THIS YEAR (under these unusual circumstances - especially considering that neither one of my 2 employers enacted the change).

Just spoke with the commercial agent contracted with Allentown to collect this tax (Keystone) and they told me that my inquiry WAS NOT THE FIRST on this topic!!

Geez, give us a break, willya??