PA’s Tax Amnesty Window Closes at Midnight.

Governor Ed Rendell says the state has already brought in nearly all of its 190 million dollar goal.
Delinquent taxpayers have until midnight to settle debts with no penalty and half the interest.
After that, the state will impose stiffer fines, and step up efforts to collect fees.
A series of edgy television commercials has made that threat over the past month.
Governor Rendell defends the $3 million cost of the ad campaign and its aggressive tone....

"I like them because they work. You know – we’ve been on almost every national news program, and it’s drawn a lot of attention to them. It’s a little like the swift boat ads. What did they put, 200 thousand dollars on tv and they got hundreds of millions of dollars of coverage?"

Rendell says through Thursday morning, the Revenue Department had collected 180 million dollars, and that more applications were coming in around the clock.
This year’s budget banks on 190 million dollars from the tax amnesty program.
Any revenue beyond that would put a dent in the state’s 1.2 billion dollar deficit.

Budget Talks "Productive, Friendlier"

Governor Ed Rendell says he’s “heartened” by progress being made in budget talks, and that he’s optimistic a spending plan for Pennsylvania could be approved by June 30th.
Legislative leaders met in the morning, and Rendell characterizes the session as “very productive.”
He says lawmakers on both sides of the aisle seem more willing to compromise, and are determined to pass an on-time budget, after last year’s 101-day standoff.
Senate Republican spokesman Erik Arneson agrees both parties are getting along better this year.
"I think we all understand that last year’s process was rightly seen by the public and anyone watching it – that it was horrible. We share the urgency to get this done by June 30th. And I think that’s true of all four caucuses."

Arneson says Republicans are “willing to consider” a natural gas tax, if it passes the House. House Democrats have so far been unable to pass their revenue package which contains taxes on cigarettes, cigars and natural tax production.
Rendell says he’s making calls to skeptical Democrats.

"Here we’re talking about tax increases that effect big gas, big tobacco and big retailers. And the public has made it pretty clear that they want those taxes generated, and part of the overall revenue package."

The tax bill would generate about 280 million dollars in additional revenue for the General Fund.

Universities Say No to Mayor

It's now up to Pittsburgh Mayor Luke Ravenstahl and City Council. The leaders of the colleges and universities in the city have rejected the mayor's ultimatum regarding his proposed 1% college tuition tax.
Ravenstahl had said if the colleges and universities agreed to contribute $5 million a year for 5 years to the city, then that would negate the need for what Ravenstahl calls the "Fair Share Tax." He said Thursday if he doesn't hear from them by Monday, the mayor will urge City Council to approve the tuition tax. Council has twice delayed a vote for a week to allow for further discussions.
Duquesne University President Charles Dougherty says they gave the mayor their answer today...."There was no point to wait for a deadline to respond to a do it or else attitude."
Dougherty says the mayor's proposed tax is illegal and if council approves it, the issue will probably end up in court. He says that whether it's a 1% tuition tax or pressured payments by the universities in lieu of taxes it still becomes the students' problem..."We (Duquesne) get 80 to 85% of our revenue from student tuition, so whatever Duquesne would pay (contributions in lieu of taxes), 80 to 85% would go on the tuition bills of students"
Dougherty says the mayor is trying to breach a "conceptual barrier" and if approved, the tax could increase to 2% and then 3%.

Mayor Sets Deadline for Universities

There could be a showdown Monday on Pittsburgh Mayor Luke Ravenstahl's proposed 1% tax on college tuition. Ravenstahl has given the city's universities and colleges an ultimatum: if they agree to contribute $5 million a year for 5 years to the city, then that will negate the need for what Ravenstahl calls the "Fair Share Tax." But if he doesn't hear from them by Monday, the mayor will urge City Council to approve the tuition tax. Council has twice delayed a vote for a week to allow for further discussions. The mayor has 5 supporters on council for his tax but terms for 2 of them, Jim Motznik and Tonya Payne end December 31.
Councilman Ricky Burgess says when it comes time for council to vote on the tax, he will introduce an amendment to push back the effective date six months to July 1, 2010. He says the delay will give universities more time to come to an agreement on voluntary payments instead of imposing the tax on students.
Councilwoman Theresa Smith has scheduled a meeting for 2 p.m. Monday in council chambers concerning the tuition tax.

Burgess Calls for a July 1 Start for Tuition Tax

Pittsburgh City Councilman Ricky Burgess says when it comes time to vote on the 1% tuition tax he will introduce an amendment to make the tax take effect July 1st rather than January 1st. He says the delay will give the universities, “one more bite of the apple” to come to an agreement on payments in lieu of taxes or PILOTS before the court battles begin. He says he will also call on the council to draft a letter to the universities asking them to enter into good faith negotiations to reach the agreements. Burgess says he does not want a deal with an amalgam of nonprofits where a final dollar amount is agreed upon but each institution’s commitment is hidden. Burgess is calling for individual deals with each university. He says he believes every council member would rather see PILOTS rather than the tuition tax so that is where the focus should be. Burgess believes that a July 1st implementation would take the focus off the city and place it on the schools. Burgess says, “If the students are taxed… it won’t be that ‘the mayor did this, the council did this.’ It will be that the universities have refused to share their great wealth and great resources with this great city.”

City Council Takes Action On Series Of Amendments

Pittsburgh City Council today approved a handful of amendments to the 2010 budget that, among other things, replaces funding that would have come from the city's proposed 1% student tuition tax. The amendments that replace the revenue from the proposed tuition tax come from multiple sources throughout the city. They include money taken from the city's debt service fund, anticipated savings as a result of a new financial reporting system and better collection of fee's and fines citywide. Council approved the measure by a vote of 6 to 1 with Councilman Patrick Dowd voting no. Dowd says he voted no because he wants more information on how the Mayor was able to calculate anticipated savings and because he does not want to use money designated for debt service to pay for budget gaps. The move allows for council to discuss and debate the budget on Wednesday and still gives them the ability to make any changes they feel necessary before taking a final vote. Council still have to vote two more times before the budget can be finalized.

City Council Holds Tuition Tax Bill

Pittsburgh City Council Voted today to hold for one week the bill creating a 1% tuition tax with the hope that a meeting with the universities later this week will produce an agreement. The 7-2 vote came after two hours of debate. City councilman Jim Motznik says the threat of the tax is why the universities are willing to talk. But Council members Bill Peduto and Doug Shields say the universities will not negotiate until the tax is taken off the table completely. Peduto says if the tax remains in play the non-profits, that had planed to give $1.6 million to the city next year, might pull that offer from the table as well. Peduto and council president Doug Shields voted against the hold but the other 7 members voted for the one-week hold. Pittsburgh Council on Higher Education President Mary Hines says the council will meet with the city Friday but it will not be a negotiation. There is ongoing debate over the legality of the tax. Motznik says he has the five votes he needs to get the tax on the books and then the two sides will have to fight it out in court. He is confident that the city will win. Hines, who is also the president of Carlow University, is equally positive the schools will win. She says holding the bill for a week, as a way to put pressure on the schools, is a waste of time. However, she says if the hold is to give the council members a chance to review testimony given over the last week and reconsider its position then the deal is worthwhile. Doug Shields says holding a gun to the universities for payment will result in a short term solution at best and he warns that the university’s have a much bigger gun then the council does.

Public Hearing Held On Proposed Student Fair Share Tax

Pittsburgh City Council today held a public hearing on the proposed 1% student fair share tax. Over 100 hundred students from Pittsburgh Colleges and Universities packed the Council Chambers and spoke out against the proposed tax. City Councilman Jim Motznik addressed the students before the hearing began and told them that Pittsburgh is only targeting them because the non-profits and universities in the city are not giving their fair share. Councilwoman Darlene Harris shared that sentiment saying that she doesn't want to have to tax students but has to find a way to fill the $15 million budget gap. Students who spoke at the hearing tried to paint a picture of a future Pittsburgh with less students attending college as a result of the tax. Many students spoke about how education is a right and not a privilege. University of Pittsburgh Student Government Association board member Charles Shull says it is obvious to him that Pittsburgh has mishandled its budget and is taking it out on students.

Council is set to take a preliminary vote on the measure December 9th and final vote on December 15th. The proposed student fair share tax is Mayor Luke Ravenstahl's attempt to fill a $15 million budget gap to fund the city's ailing pension fund. The proposed tax would apply to any student that attends a university or college in Pittsburgh and would vary student by student depending on the amount of their tuition. City Council is split on the legislation but currently has enough support to approve it by a 5-4 vote. Riefenstahl's budget, which included the proposed tax, was shot down by the state appointed Inter Governmental Cooperation Authority. The Mayor has urged members of Council to approve the tax even though questions on the tax's legality abound.

Study Says PA's Tax Rate is Regressive

A new study says Pennsylvania's tax rate is one of the "most regressive" in the nation.
Sharon Ward of the Pennsylvania Budget and Policy Center, a liberal think tank, says that's because every commonwealth resident pays the same 3.07 percent personal income tax, no matter how much money he or she is bringing in.
Ward says that means lower earners end up paying out a much higher portion of their finances into income, sales and property taxes.
She wants lawmakers to consider charging a higher income tax rate to the wealthy, so that lower and middle-income taxpayers can catch a break. Ward says that's feasible.

"It's important to note that we're--our tax rate is much lower than the surrounding states. Our top income tax rate is much lower than New York, New Jersey, Delaware, even West Virginia. Very high income earners--people over 500,000 dollars--pay twice as much income taxes in West Virginia."

According to the data, families earning 19-thousand dollars or less are spending 11 percent of their income on taxes, compared to the 5 percent that families earning more than 1.3 million dollars are shelling out.

The national study was put together by the Institute on Taxation and Economic Policy.

Tax Checkoff Helps Organ Donation Efforts

The deadline to file your Pennsylvania income tax return is less than a month away and several groups are hoping last minute filers will be in a charitable mood with their refunds. In 1994 the Pennsylvania Legislature created the Governor Robert Casey Memorial Organ and Tissue donation Awareness Trust Fund and then gave income tax filers the option to send all or a portion of their refund to the charity. It is now one of five options at the bottom of the PA-40 form. Leslie Best runs the fund. She is the director of the Pennsylvania Bureau of Chronic Diseases. She says the funds raised do not go directly to transplanting organs. The funds are used to increase organ donations through awareness and education of the need for organ donors and the easy of becoming one when you renew your drivers licenses. Best says about 40-percent of Pennsylvanians with drivers licenses are signed up as organ donors. That number has been increasing in recent years. She says the educational efforts start in the grade schools and never stop. The fund also gives money to those making live organ donations to help defray travel costs. Best says to make sure the funds are spent wisely, they also have an advisory panel. The panel includes doctors, hospital officials, organ recipients and the families of those who have given organs. The PA 40 tax checkoff is the only revenue source for the organ and tissue donation and recover fund. Last year the support totaled $27,500. While most filers who fill out their own tax forms notice the 5 checkoff options, Best encourages those who use preparers to ask them to take advantage of those options on their behalf.

Tax Checkoff Helps PA's Biodiversity

The Wild Resources Conservation Fund is hoping your state tax refund turns into a better understanding of global warming. We have all seen the river otter licenses plates that help support the fund but many of us have never noticed the other funding mechanism for the effort. At the bottom of the PA 40 income tax form a filer due a refund has the option to send all or a portion of that refund to 5 charities. Last year more than $123,000 was given to the fund. Executive director Greg Czarnecki says the fund is the only program that focuses on Pennsylvania’s native plants and non-game animals through education and research efforts. Czarnecki says among the programs currently being funded is an effort spearheaded by the National Aviary in Pittsburgh, which is tracking golden eagles. He says with the growth of wind farms it is even more important that conservationists understand the flight and migration patterns of the birds. The fund is also in the process of mailing out a set of DVD’s to every public school in the state. The videos are intended to teach 4th graders about biodiversity, endangered species and climate change. Czarnecki says it’s that last item where much of the funds dollars will be spent in the coming years. He says we know that plants and animals will begin to move to higher elevations and further to the north but the paths they may take are not yet know. He says it is important to preserve those paths if we want to preserve the species. Czarnecki says with climate change and suburban sprawl packing a one two punch on plant and animal species it is more important than ever to fund this type of research and education. The Wild Resources Conservation Fund will be dropped from the PA 40 at the end of the year and Czarneki says he hopes the legislature will see fit to approve it for at least another filing season.

Tax Checkoff Helps Military Families

The deadline to file your income tax return is just more than a month away and many filers are just now noticing that they can give all or a portion of their state income tax refund to one of 5 charities. One of those charities is The Military Family Relief Assistance Program. (MFRAP) The fund is run by the Pennsylvania Department of Military and Veterans Affairs. Chris Cleaver is a lieutenant Colonel with the Pennsylvania National Guard and spokesperson for the fund. He says the money goes to veterans and families of active duty members of the military who have fallen on hard economic times. In the past the fund has helped veterans dealing with fire damage at their home, an auto accident or an unexpected bill. Cleaver says the fund tries to stay as flexible as possible because so many other programs provide assistance for very specific situations. Since its inception the fund has taken in half a million dollars. 80% has come from the tax check-off program. Cleaver says so far, only $100,000 has been spent. The program will not appear on the PA 40 form next year. Cleaver says the fund is in good shape right now and they hope to be able function using individual donations and the interest accrued from the account. Cleaver says knowing how much the members of the military have given to their commonwealth and their country they are deserving of the help when they fall on hard times. Vets and active military families in need can apply to the Military family relief fund for assistance and cleaver says about half of those requests have been granted. The fund also keeps on eye on local papers and vets groups in an effort to find those in need who may not know about the fund. Last year MFRAP received $166,800 from the PA-40 refund check off program.

Tax Checkoff Helps Breast Cancer Research

For the tenth year in a row, income tax payers in Pennsylvania who are due a refund can give money to the Pennsylvania Breast Cancer Coalition Breast and Cervical Cancer Research Fund. Last year the Breast and Cervical Cancer Research Fund took in $164,000 through the check off program found at the bottom of the PA-40 form. The fund is run by the Pennsylvania Breast Cancer Coalition. President Pat Halpin-Murphy says the coalition focuses on issuing research grants, offering free treatment and launching public awareness campaigns. Halpin-Murphy says only the research portion of the organizations mission is supported by the check off. In the last ten years the fund has received $2-million dollars making it the most popular program ever. Halpin-Murphy says Pennsylvania is blessed with a large number of research institutions and many of them are delving into finding better treatment methods and eventually finding a cure. Each grant handed out by the fund is for $50,000. Halpin-Murphy says the goal of the fund is to “find a cure for breast cancer so our daughters don’t have to.” She reminds those thinking about giving to the fund that one in 8 women will be the victim of breast cancer and nearly everyone has been touched by the disease in one way or another.

Tax Checkoff Helps Diabetes Research in PA

At the bottom of the Pennsylvania tax return, filers owed a refund have the opportunity to give all or a portion of it to one of 5 charities. Among them is the Juvenile (TYPE I) Diabetes Cure Research Fund. In 2004 the state legislature added the fund to the list of options that annually generates about a half million dollars for the charities. In 2007 alone the Diabetes Fund picked up $58,000. Leslie Best is the Director of the Bureau Of Health Promotion And Risk Reduction at the State Department of Health. She manages the fund. She says the tax check-off is the only source of revenue for the fund so it took two years before they could award their first research grant. Best says when they asked for proposals they received a good batch of applicants and put together a panel to review them. The grant ultimately went to a researcher at the Penn State School of Medicine for a study on the impact type I diabetes has on vision. Best says the researcher has two years to finish the work. In the meantime the fund is building up its reserves again and hopes to put out a request for applications next year. She says Type I Diabetes is a serious issue that deserves the research dollars. She says more than 3 million Americans have Type I diabetes and every year about 5,000 kids are newly diagnosed.