Web site: RepMillard.com
Tell Me What You Think About State Funding Options
As we are all well aware, Pennsyl-vania, like every other state, has beendrastically affected by the economicdownturn that has gripped the nation.Revenues are down and all attention iskeenly focused on the state budget as weface a multi-billion dollar deficit.I am interested in gauging your sup-port for three separate options for staterevenue generation. Note: the property tax legislation and video poker havedefined uses for the revenue in currentlegislation. e table games proposaldoes not yet have a defined use forrevenue.
School Property Tax Elimination Act
e School Property Tax Elimination Act phases out school property and nui-sance taxes over a four-year time frame.e plan would replace the lost revenue with a blend of state taxes including anexpanded state sales tax to include mosttangible personal property and services,an increased state realty transfer tax (1.0percent to 1.5 percent), and an increasedstate personal income tax (3.07 percentto 3.62 percent). Note: this has not yetbeen reintroduced in the Legislaturefor the 2009-10 session, so details arebased on the proposal from the 2007-08 session.
Some specifics on the way this leg-islation would expand taxes:
Extends the current Sales and UseTax (6 percent) to most tangible personalproperty, as well as various services.
Food and clothing (currently exempt) would be taxed at 3 percent.
Items that would remain exempt from taxes:
Prescription drugs.
Medical supplies and goods andother specified medical items.
All other,non-exempted, services will be taxable.
Services provided by doctors, hos-pitals and dentists.
Fresh meat, fish, vegetables, fruitand juices.
Milk and milk substitutes, bread,cheese and eggs.
WIC and items purchased in con-nection with the Food Stamp Act.
e retail sale of insurance pre-miums, investments or gains on invest-ments, such as bank deposits, stocks andbonds, tuitions, and the rental of rentalproperty.
e sale to or use by businesses of legal services, accounting services, audit-ing services and bookkeeping services,engineering services, research and com-puter services and data processing.
Video Poker
The Rendell administration an-nounced in February that it wants tolegalize video poker machines at res-taurants, private clubs and corner barsto help Pennsylvania students pay forcollege. Under the proposal, the stateDepartment of Revenue would regulatethe industry - requiring establishmentsto apply for a license for the poker ma-chines - and oversee the taxes on pokerprofits. According to the governor’s an-nouncement, the plan is to use theproceeds from licensing and taxing thevideo poker machines for tuition relief.That relief would be made availablefor families earning up to $100,000 ayear who have students attending any of Pennsylvania’s 14 community col-leges or the 14 public universities in thePennsylvania State System of HigherEducation.Supporters praised the move as a way to capture untold dollars being paidout annually in the vast undergroundeconomy of illegal video poker, whilegambling opponents say they fear thesocial costs would be high.Gov. Rendell’s proposal to legalizevideo poker machines in Pennsylvaniahas garnered attention on a number of fronts – the most notable centers on theadministration’s claim that the move would not be an expansion of gaming.If in fact it is determined that legalizingvideo poker is an expansion of the state’scurrent gaming industry, then many question whether it would prompt thestate’s current casino license holders tofile suit in an effort to recover their $50million license fee. Current law statesthat any expansion of gaming couldresult in a full or partial return of thisfee. Specifically, it would need to be de-termined if a video poker machine is a“slot machine” under the existing law.
Table Games
Casino owners are pressing state lead-ers to OK table games such as poker,blackjack and craps. Rep. Bill DeWeese(D-Greene) wants to legalize table gameslike blackjack and roulette. He saysthe move would bring in an additional$400 million to the cash-strapped Com-monwealth. With three of the state’s 14casino licenses still unawarded, and con-struction of two casinos in Philadelphiabogged down in local disputes, Rendellbelieves this isn’t the time to legalizetable games. ere is no offi cial legisla-tion in place to define the distributionof potential funding raised through tablegames yet this legislative session.Now that you have a few details on these proposals, tell me what you think about these three options. Fill in this survey and mail it to my offi ce, or save a stamp and share your thoughts on my online survey, posted at
RepMillard.com.
School Property Tax Relief Act
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Please cut out and mail to: Rep. David Millard, 605 West Main St., Bloomsburg, PA 17815.Or fill out online at
RepMillard.com
. ank you!
Video Poker
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Table Games
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