Aspinwall officials have taken another step to raising the borough’s business privilege tax from $100 to $500.
Council unanimously voted July 12 to advertise an amendment to the borough’s business privilege tax ordinance that would allow the borough to impose the increase.
The tax also would apply to all businesses in the borough regardless of profit margins.
Currently, the tax is levied only on businesses making at least $2,000 a year.
Councilman Heth Turnquist, chair of finance and personnel, said Aspinwall has to drop the $2,000 exemption in order to comply with state law.
By allowing the exemption, Solicitor Steve Korbel said, Aspinwall, in legal terms, changes its business privilege tax from a flat fee to a percentage.
“It makes it more of a millage-style tax,” he said. “… In order to make it compliant, we had to remove that language around the exemption.”
The proposal states that businesses can apply for a hardship exception.
Hardship exception requirements were not announced at the meeting and are not specifically listed in the proposed legislation.
The increase is expected to impact about 120 to 150 businesses. The increase would boost revenue from the business privilege tax from about $12,000 annually to between $50,000 and $60,000 a year.
Sam Sieber, owner of Sam’s Tavern in the Wall along Commercial Avenue, questioned the need for the increase and what the money would be used for.
“I want you people to understand that every business in this town, through their rent, whether they write the check or not to Aspinwall, pays taxes,” he said. “You guys can’t forget that.”
Borough officials said expenses have gone up across the board, and they need to generate more revenue without digging into property owners’ pockets.
Council President Tim McLaughlin said real estate taxes have gone up over the years, but the business tax has not been increased since 2004.
“The love has been spread and shared amongst the residents,” McLaughlin said in reference to the tax increases. “(Business privilege tax) was No. 37 on the list of priorities of things that I think we had to address as a council.
“As we’ve checked things off the list, … this was one of the things we hadn’t addressed. So, we finally looked and we’ve addressed it.”
Council members did not give a definitive answer for how the the additional revenue would be used but indicated it would help with various community events.
Sieber left the meeting shortly after the business privilege tax discussion.
“I was satisfied with what I walked out with,” he said. “I hope they understand what I’m saying. I didn’t make these taxes, but I just want it to be fair and honest and understand it.”
Residents and business owners will have another opportunity to comment on the proposal during council’s Aug. 2 workshop meeting. Formal adoption is expected Aug. 9.
