HARRISBURG - A controversial "drink tax" option threatened to draw attention away from helping fiscally distressed municipalities and will be removed from Act 47 rewrite legislation, the House bill sponsor said Tuesday.
The House Urban Affairs Committee held a discussion on the bill, which would provide an exit strategy for Act 47 municipalities and give them temporary tax options in advance of a vote early next year.
Rep. Chris Ross, R-158, Unionville, said an amendment will be offered at a future meeting to drop the option for an alcohol consumption tax of up to 10 percent on the price of an alcoholic drink.
Taverns and restaurants opposed the idea on grounds it would lead to a loss of business.
An Act 47 task force that issued a report in September sought to give revenue alternatives to distressed municipalities, yet not hurt the recovery process by driving businesses away, Ross said.
Bills to carry out the task force recommendations contain other tax options for Act 47 municipalities.
These include either a higher earned income tax on residents and nonresidents - the latter is known as a commuter tax - or an increased local services tax on residents and commuters or a payroll preparation tax on businesses.
The measure would allow an Act 47 municipality to stay under that status for five years and then face a three-year exit plan.
That should be sufficient time for a municipality to determine its destiny, said David Green, counsel for the Pennsylvania Local Government Commission.