PA House Transportation Chair, Rep. Tim Hennessey, has introduced legislation that would allow a county to levy and collect a local tax to assist funding local mass transportation and transportation organizations. However, before assessing the additional local tax, the respective county must adopt an ordinance or resolution. The Department of Revenue will be required to promulgate and enforce the regulations required to administer the excised local tax. A county may impose the local tax on the following:
A tax upon a transfer of real property or an interest in real property within the county;
A surtax not to exceed 0.2% of the tax imposed on the taxable income of residents within the county; and/or
A surtax equal to 0.25% imposed on the purchase price of tangible personal property and services.
In addition, this legislation would allow a county to use the local tax revenue to offer grants to local transportation organizations and mass transit agencies for alleviating some of the costs related to costs of operations, maintenance and debt service. Also, counties can enter into agreements to use the local tax revenue to jointly fund local transportation projects and local mass transportation
This legislation is part of the House Transportation Task Force’s package of bills that is responsible for finding innovative ways for the Commonwealth to fund transportation, while also ensuring the current funding sources to transportation are as effective as possible. To learn more, click here.
GVF supports any bill that would increase transportation funding. We are asking our members to contact the House Transportation Committee to show your support for this bill. On September 17, the PA House Transportation Committee will be meeting to vote on HB 2068, along with several other bills. We urge you to send a letter of support to the Transportation Committees before September 17th. Below is a template for your guidance.